Daily News

REGULATORY
Four in 10 alternative asset managers have said they are under pressure to review their investment structures and potentially strengthen them in order to ensure they are BEPS-compliant, according to new research commissioned by Intertrust. The Base Erosion and Profit Shifting regulation (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. In June at the... Read more
CORPORATE
Prestige Capital Management Limited (‘PCM’), the AIFMD-licensed Malta arm of the Prestige group of companies, is continuing to expand its Malta-based operation with the appointment of Dario Inclimona as junior portfolio manager to its growing team. Dario will be working alongside Jonathan Scott, who joined PCM as Chief Operations Officer in November 2016, and will be looking after day to day fund investment portfolio operations. This... Read more
FUNDS
The gross return of the SS&C GlobeOp Hedge Fund Performance Index for May 2017 measured -0.13%. Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index advanced 1.24% in June. “SS&C GlobeOp's Capital Movement Index for June 2017 rose 1.24%, a strong improvement in net flows from the -0.07% reported a year ago for June 2016,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies... Read more
FUNDS
Global risk appetite remained steady during the recent months, despite continued investor concerns over asset price valuation and political risks, according to Lyxor's latest Hedge Fund Brief. The MSCI World is up 3.5% in Q2 as of early June*. Yet, sovereign bond yields remain very low and yield curves flattened, raising questions over investors’ confidence on the pace of economic activity going forward. Hedge fund performance has been... Read more
FUNDS
In reaction to the French legislative election results, Timothy Graf, head of macro strategy EMEA at State Street Global Markets, and Elliot Hentov, head of policy and research – official institutions EMEA at State Street Global Advisors, offer their views. Graf comments, “The confirmation of a Republique En Marche (REM) majority in the National Assembly caps an astonishing six weeks in French and Eurozone politics. President... Read more
CORPORATE
Societe Generale Corporate & Investment Banking (SG CIB) has announced the completion of a programme to combine its execution teams, adapting to increasing demand for fully integrated electronic and high-touch trading services across asset classes. In the final stage of this integration, the investment bank’s high-touch cash equity team has moved to join the Global Execution Services (GES) team within Societe Generale Prime Services.... Read more
FUNDS
Hedge funds returned an average of +0.21% in May 2017, and aggregate returns are +3.20% YTD in 2017 according to eVestment’s Hedge Fund Industry Asset Flow Report. May performance was led by funds focused on corporate capital structures, while commodity and currency funds continue to be the primary drag on industry performance. Asset flows for the month stood at $10.52 billion for the month, bringing YTD flows to $23.32 billion. Total... Read more
PEOPLE
P. Schoenfeld Asset Management LP (“PSAM”), have announced that John McVeigh has joined the firm as a Deputy Portfolio Manager of US Merger Arbitrage. McVeigh brings more than 12 years of investment experience in merger related situations to PSAM. Most recently, he was a Managing Director at TIG Advisors, a global event-driven fund focused on M&A, corporate restructurings and merger related special situations with more than $1.5... Read more
FUNDS
Seven weeks ago, UK Prime Minister Theresa May called a snap election with the aim of consolidating power for the Conservative Party ahead of negotiations to leave the European Union (EU). This high-risk political strategy has failed with the party losing its majority and the UK heading towards a hung parliament. Michael Browne, Portfolio Manager European long/short, looks at what this now means for investors and the UK economy. Another shock... Read more
CORPORATE
Richard Buxton, head of UK equities, Old Mutual Global Investors   This was a vote on income and asset inequality across the age brackets. While the result may not have been the obvious preference of the financial markets, there remain reasons to be optimistic.   Most of us had become familiar with Theresa May’s distinctive prime ministerial style in the nearly 10 months she’d been living behind that famous black door.... Read more
CORPORATE
Commenting on the results of the UK general election, John Wyn-Evans, Head of Investment Strategy at Investec Wealth & Investment, said:   “The reaction in financial markets is muted. From a global perspective we have to put this election into context. It really means very little for the rest of the world, which we have to bear in mind in the face of the face of shrill wall-to-wall domestic media coverage.   “The... Read more
CORPORATE
In reaction to the UK general election results, Michael Metcalfe, global head of macro strategy at State Street Global Markets; and Bill Street, head of investment for EMEA at State Street Global Advisors, offer their views.   Metcalfe commented, “Markets were poorly prepared for this surprise result in UK. While the dramatic narrowing in polls prior to the vote had introduced an element of doubt, an outright Conservative victory was... Read more
CORPORATE
Cutler Cook, Associate Director at PAAMCO, shares his thoughts on last nights UK election result.   “The U.K. election has been a case study in the complexities of polling; turnout patterns have changed in the aftermath of the Brexit referendum, which mobilized young voters, who now know where to find their polling station; age trumps social background, which may be the beginning of a new global phenomenon, and we have seen two in/out... Read more
FUNDS
The long journey to European Central Bank (ECB) policy normalisation continues in baby steps. The ECB left policy unchanged but acknowledged that the risks to the growth outlook are no longer “tilted to the downside” and that it does not foresee cutting interest rates over the medium term. This is eminently sensible – the ECB could neither credibly look the market in the eye and deny the improvement in the macroeconomic picture... Read more
CORPORATE
In reaction to the European Central bank (ECB) meeting today, Timothy Graf, head of macro strategy at State Street Global Markets; and Antoine Lesné, EMEA head of ETF strategy at SPDR ETFs, part of State Street Global Advisors, offer their views.   Graf commented: “Today’s remarks from ECB President Draghi offered few surprises. The tone to European data has clearly been positive this year and should support the single currency... Read more
CORPORATE
Cutler Cook, Associate Director at PAAMCO in London, has put together the following brief comments on different post UK Election scenarios for hedge fund investments.   On what to expect “As we saw after Brexit, we expect to see most of any market volatility play out first through the currency and from there through to stocks. We anticipate that a larger Tory majority will result in a stronger pound, which could in turn ripple through... Read more
REGULATORY
Fund managers in Japan now typically allocate up to 10% of their total expenses on regulatory compliance, according to one of the largest surveys of Japanese fund managers and institutional investors in the alternatives sector by Eurekahedge, the data provider and alternative research firm, and AIMA Japan, the Tokyo-based branch of the Alternative Investment Management Association (AIMA).   The survey of close to 90 firms with around US$375... Read more
PEOPLE
The Chartered Alternative Investment Analyst (CAIA) Association, a global leader in alternative investment education, today announced that Valerie J. Sill, CFA, CAIA, has joined its Board of Directors.   Ms. Sill is the President and CEO of DuPont Capital Management (DCM), where she also serves as Chief Investment Officer. Prior to joining DCM in 2004, Ms. Sill was Executive Vice President with The Boston Company and has held senior... Read more
FUNDS
Societe Generale Prime Services today announces the May 2017 performance data for its SG CTA indices.   May 2017 YTD SG CTA Index 0.00% -0.06% SG CTA Mutual Fund Index 0.01% -0.52% SG Trend Index -0.35% -2.21% SG Short Term Traders Index 0.29% -6.04% SG Trend Indicator 3.42% -1.12% CTA performance on the whole was flat in May, remaining flat for the year 2017. The Short Term Traders Index... Read more
CORPORATE
The Alignment of Interests Association, (“AOI”) a non-profit investor-driven organization, today released Hedge Fund Fees: Achieving Greater LP/GP Economic Alignment, a set of guidance aimed at creating increased investor-manager alignment on the issue.AOI’s Hedge Fund Fees guidance was developed by a committee comprised of leading institutional investors in hedge funds, including pensions, foundations and endowments, and consultants for... Read more
FUNDS
Global risk appetite remained steady heading into June, despite continued investor concerns over asset price valuation and political risks. The MSCI World was up +1.5% in May, led by Japanese indices. Meanwhile, sovereign bond yields remain stubbornly low and yield curves flattened, particularly in the U.S., raising questions over investors’ confidence on the pace of economic activity going forward. As a result, the Dollar index fell -2%... Read more
FUNDS
The BRI Long/Short Equity Index’s positive attribution in May was driven largely by exposure to Growth-focused names across both the Large and Mid-Cap universes with MidCap Value and the broad-index hedge detracting.  BRI Dynamic Growth & Value Index represents the un-hedged portion of BRI Long/Short Equity Index:                             PERIODIC PERFORMANCE... Read more
CORPORATE
The past couple of weeks have been dominated by political shifts amidst relatively benign, if slightly disappointing, economic data. In Europe, the election of Emmanuel Macron has been a positive influx for European politics. The French president has reached out to Germany, promising French reforms and asking for greater European integration and social/economic policies. Angela Merkel, having already achieved everything she could for the German... Read more
CORPORATE
Mercer’s latest European Asset Allocation Survey has highlighted that 55% of the UK’s defined benefit (DB) pension schemes are now cashflow negative (up from 42% in 2016) with 85% of the remainder expecting to be cashflow negative by 2027. Cashflow negative schemes lack sufficient income from investments and contributions to pay member pensions, so typically need to sell assets to meet their liabilities. Consequently, they are more... Read more
CORPORATE
One of the concerns around GrubHub centers around the competitive landscape within the online food ordering space. With the industry still in its nascent stages, competitors such as Ubereats, Amazon, Postmates, Doordash, and a bevy of other smaller startups are all aggressively vying for market share. Prior to the company’s 1Q results, investors debated how this might negatively impact GrubHub’s growth trajectory in the long run. The... Read more
CORPORATE
Last December, Starbucks management laid out its longer-term growth plans. Central to these plans were targets of high-single digit store growth and mid-single digit comparable store sales growth. How do these targets compare to what analysts are currently modeling for the company? Store Growth Visible Alpha’s data shows that analysts expect Starbucks to open 7-8% more stores each year into 2019, which is in-line with senior management... Read more
CORPORATE
Jens Peers, CIO, Sustainable Equities and Fixed Income at Mirova reacts to the US withdrawal from the Paris climate accord. 'The Trump administration’s decision to withdraw from the 2015 Paris Climate agreement is not only irresponsible, but, frankly unacceptable and economically dangerous for the country he wants to make great again. However, there is some reprieve, as the immediate effect may be primarily psychological. The... Read more
FUNDS
LGT Capital Partners Ltd., a leading alternative investment specialist, has successfully completed the acquisition of European Capital Fund Management Ltd. (European Capital), a London- and Paris-based private debt manager, from Ares Capital Corporation. European Capitals’ Funds will remain managed by the same team led by Matthew Gordon Clark, Etienne Haubold, Stéphane Legrand and JC Morales Cortes. The European Capital team now constitutes the... Read more
PEOPLE
The board of Resscapital AB has appointed Gustaf Hagerud as the new Managing Director for the company. “Gustaf brings a wealth of knowledge about the financial markets and extensive experience from managing large and complex assets. This is very positive for the company and I’m really pleased”, says Jonas Martenson, founder of the company. Gustaf has over 30 years of experience in the financial industry. Prior to joining... Read more
FUNDS
Pershing Square Holdings, Ltd. (LN:PSH) (NA:PSH) announced today that FTSE Russell has confirmed that it will include PSH in the FTSE 250 Index, effective Monday, 19 June 2017. “Inclusion in the FTSE 250 is another important step for PSH and our shareholders,” said Pershing Square CEO and Portfolio Manager William A. Ackman. “We expect inclusion in the FTSE 250 to increase demand for PSH shares from index-tracking funds,... Read more
CORPORATE
LifePoint Health acquired eight healthcare facilities between 2015 and 2016 with a goal of bringing their EBITDA margins from single digits to double digits. Over one year later, investors are now looking for LifePoint Health to demonstrate overall company EBITDA margin expansion driven by operating efficiencies at those acquired hospitals. The company recently reported 1Q17 results in late April which had a mixed set of takeaways for the... Read more
REGULATORY
The European Securities and Markets Authority (ESMA) has published an Opinion setting out general principles aimed at fostering consistency in authorisation, supervision and enforcement related to the relocation of entities, activities and functions from the United Kingdom. The opinion is addressed to national competent authorities (NCAs), in particular of the 27 Member States that will remain in the EU (EU27). The opinion is a practical tool to... Read more
CORPORATE
State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for May 2017. The Global ICI increased to 102.5, up 5.1 points from April’s revised reading of 97.4. The improvement in sentiment was driven by an increase in the North American ICI from 95.1 to 104.1. The European ICI rose marginally from 96.2 to 96.9. In contrast, the Asian ICI continued to decrease from 104.6 to 101.1 this... Read more
REGULATORY
The Hedge Fund Standards Board (HFSB), the global standard-setting body for the alternative investment industry, has become Co-Chair of the Open Protocol Working Group. The Open Protocol template standardises the collection and representation of risk information of hedge funds and other types of investment funds, and currently is used by funds with over $1 trillion in assets under management. Open Protocol, which is an open standard which all... Read more
FUNDS
Global Hedge funds maintained their performance momentum and finished in "greens" in May, reaching the fifth consecutive positive month in 2017 and the 14th positive out of the last 15 months. The theme remains the same so far for hedge funds with event-driven and credit/fixed income strategies performing well for their investors, whereas macro and CTA strategies continue to disappoint despite big asset inflows. Equity hedge strategies... Read more
CORPORATE
Were US Markets to Sneeze… Signs of economic growth, steady US yields and a calm dollar greenlit a rebound in global risk assets after last week’s declines. Less noise about the controversial Trump’s ties to Russia and a relatively innocuous Fed statement helped US equities to recover. While the minutes reinforced expectations for a fully-priced June rate hike, they didn’t change investors’ prospects for at most... Read more
CORPORATE
On LULU’s fiscal 4Q conference call, senior management noted a material slowdown in stores and on their website to start their 1Q17. Management noted that store traffic softened in February and March, while conversion on their website was negatively impacted. Since those results were announced in late March, investors have debated whether the slowdown was due to a more structural issue at the company or a temporary execution-related issue... Read more
CORPORATE
Following yesterday’s publication of the Global Code of Conduct for foreign exchange (FX) markets, David Newns, global head of Currenex and SwapEx, as well as EMEA head of GlobalLink at State Street Global Markets, offers his view: “We welcome the final version of the Global Code of Conduct and the increased transparency that it will bring to market practices in our industry.  The Code provides a way for FX professionals to... Read more
CORPORATE
In late 2015, Under Armour’s senior management established long-term targets of 25% sales CAGR and 23% operating income CAGR through 2018. This translated into $7.5 billion in sales and $800 million in operating income by 2018. However, since that time, Under Armour has been negatively impacted by several factors, including retailer bankruptcies (specifically The Sports Authority), business mix shifts (lower-margin footwear becoming a... Read more
REGULATORY
At its 19th Annual Global Funds Conference today, Irish Funds, the representative body for the cross-border investment funds industry in Ireland, launched ‘Ireland: A Guidebook for Chinese Asset Managers’ in partnership with the Asset Management Association of China (AMAC). The Guidebook is the latest initiative in the funds industry’s ongoing drive to develop and grow the industry here by partnering with the global asset... Read more