Monday, 22 September 2014
Last updated 1 hour ago
Jul 21 2006 | 5:45pm ET
Robert Merton, the founder of infamous Long Term Capital Management, the hedge fund that roiled financial markets in 1998 when it collapsed, is preparing to launch an emerging markets hedge fund in September.
The Victoria Fund will be managed by Jose Lois Daza, the former head of emerging markets strategy at Deutsche Bank. The minimum investment in the new fund is $5 million, and the management fee is 2%. The fund will invest in sovereign and corporate bonds and foreign exchange, among other things.
The Nobel-prize winning Merton, who founded boutique investment Integrated Finance in 2003, revealed his latest endeavor to reporters at a recent hedge fund conference in Cannes.
According to The Times, Merton isn't haunted by past LTCM demons. He told the paper, "(Collapse) is not unique to hedge funds. It's inevitable when you have a system with a low point of entry. People will make mistakes."
In addition to Merton, the founders of Integrated Finance include Roberto Mendoza and Peter Hancock, the former vice-chairman and former chief financial officer, respectively, of JPMorgan. Backers of the boutique include French bank BNP Paribas and Bermuda insurer ACE.
The investment committee overseeing the new fund includes Hancock, Gene Shanks and Thomas Graham. Shanks was formerly a president of Bankers Trust Company and Graham led hedge fund¬-linked structured products at CDC IXIS Capital Markets.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.