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*updb Projeia – M&A
HFN: What was the benefit to Southridge in making this acquisition? SH: It gave us an opportunity to offer different products to both our existing and expanding investor base. Volatility and activity in the overall equity markets have been at their lowest levels in a decade and we are expecting a continuing reversal from that period of inactivity. Interest rate uncertainty and geopolitical instability, among other reasons, are creating great opportunities in the marketplace as we continually seek out and exploit anomalies.

**Write /Rsch article covering blow-ups in sectors eg. convertible bond (specifying ‘lessons learnt for risk assessment / due diligence’); CDO crash from GM / Ford downgrades to Junk; **up cv: was a member of the operations and middle office management team and operational due diligence group within Deutsche Bank's absolute return business Hfd replication: 74% of hedge funds have options like behaviour, finds massive quantitative study Fund arb opps: SEC gives blessing to ProFund`s leveraged ETFs, `opening the floodgates to host of innovations that could include actively managed ETFs` New sector: Ground-breaking North Korea fund launched Survivorship bias: Charlotte hedge fund is shutting down Hfd adJob: Lee Gardhouse of Hargreaves Landsdowne said the cautious managed fund had been launched with the birth of the Sipp market in mind and described it as the 'missing link' in its existing fund of funds range. Regs: Ucits III gives fund managers new tools to cope with hedge fund growth
News *updb primer According to a report by Financial News, the Greenwich-based fund has stringent restrictions on redeeming capital, including a limit of 7.5% that can be paid out of its total funds each quarter. The limit has never been reached in the past, but if all the investors headed for the gate at once, and if Amaranth stuck to that limit, it could take three to four years before all investors got their money out, the paper said.

Fortis in strategic move to set up hedge FoF, to hire new head for unit

5% to 8% YTD. to add fixed income FoF Mellon to add hedge funds. and equity indices are returning from 5.S. That is after failing to produce double digits only once (1994) in the 14 years before then. China`s first index futures target institutions Liongate readies more concentrated FoF Finnish FoHF Abacus sees major asset inflow. while the risk free rate is currently close to 5%. According to HFN averages. Many have flat or negative returns YTD. the advent of all of these Alpha producing strategies in the hedge fund space has greatly dampened volatility across larger markets in the last five years. Thomson ONE Hedge Fund Manager Hedgebay & Numeria form strategic alliance: `Total solution for valuing and trading alternative assets` Swede aims to start new $1. group may be valued up to $7bln Buenos Aires-based Copernico Capital Partners launched the Copernico Special Situations Fund with $20 million in equity on August 11 UK-based Kotak Mahindra is planning the launch of its first open-end private investment in public equity fund. focused on India Ashmore to sell 25% stake in firm through IPO . strategic alliances. Risk is an essential ingredient to return and macros know how to take measured risk. and commodities have all exhibited signs of trending characteristics. Now. eyes international expansion through acquisitions Goldman Sachs $10bln flagship hedge fund dropped 10% in August. and the consequent liquidity has fostered huge transactions with smaller "spreads" that has diminished accumulation or liquidation price effects. and stocks. they were forced to trade more in those liquid and developed markets. Credit Suisse acquires stake in Ospraie SocGen uses 4Sight to enhance stock lending visibility GAM multi-manager group head of operations Malcolm Paterson joins German Signina Capital Thomson Financial launches Thomson ONE Hedge Fund Trader. Volatilities are likely to rise. Years ago.5bln London hedge fund Hedge funds flirt with heresy: Going public. or related to another arb-like strategy. for every buyer or seller there is an offsetting transaction which could be a cross market trade or computer driven arbitrage against another security or market. As assets under management increased for macros. bonds.*updb primer Recent years have seen macro managers produce far less exceptional returns than history would suggest. Second. U. Not so much any more. the Macro Average has produced only one double digit return since 2000. And there were nine of those 14 years in which the space produced returns in excess of 20% and exceeded 30% five times. but has been dormant for far too long. flat for the year *\*updb ProjEia Credit Suisse in $500m move to boost alternatives. This space should not be ignored as a key strategy that not only led us in the past. position building by a large macro fund or funds in a very short time frame could cause in itself a several percent move immediately in a particular market. the huge increase in the investor base and the globalization across nearly all markets has diminished the effect of any one player's influence on pricing in those markets. So what's the problem with the Macro space now? First. This has at times reduced the influence of the macros to foster a dominating price trend in short time frames. So what's the bottom line? This Shadow thinks the time for Macros could be now.

5bln. Horizon Cash Management assets top $3. assets jump Former hedge fund executive rejoins buyside as Royal Bank of Scotland builds Asian derivatives business and hedge fund coverage State Street Global Advisors has launched its new SSgA Asia Pacific Equity Market Neutral Strategy London-based Pacific Continental Fund Management is considering creation of a new property fund to be retailed on the European continent .. Cabeus Capital`s new fund will invest in US energy futures. `Top Gun` Cruise shot down by Paramount. Oppenheim / Attica win German EUR60m hedge fund mandate The report cited the company Web site.S.Asia Fund to investors Swedish hedge fund Kreon has joined the Nordic Hedge Fund Index Bear Adds Fund Pair in Equity Sales Trading Push Bear Stearns added two hedge fund personnel as part of an effort to bulk its equity sales trading in Europe. HSBC appoints global head of manager research. to set up own firm financed by hedge funds.P. Swiss bank EFG H1 net doubles to CHF 100. platinumfunds. Husselbee to run active FoF for City Financial Hedge fund pioneer opens new U. Lehman expands investments business to Asia Lyxor gears up for major Asian push . Morgan sales trading head Mark Rooney. which no longer listed him as managing director. Matrix launches closed ended FoHFs.7m Two of three best performing European hedge funds during H1 are Nordic Yale study: Nearly third of actively managed U...K. Jim Dixon and Matthew Tricks will handle hedge fund coverage in its equity sales trading unit. Rohatyn will take Lehman Rooney will oversee institutional equity sales trading. Dixon.Man Group advances as talk of bid from Goldman Sachs circulates Collins Stewart to list hedge FoF in London Olympia Capital opens new office in Halifax and expands two existing locations Sal. mutual funds are `closet indexers` Aberdeen Property Investors has begun offering its Aberdeen Indirect Property Partners .. The report also said Platinum Capital is also going through the process of changing his Financial Service Authority status as an "approved person" for their company F&C sets sights on FoHFs. Dixon and Tricks joined Bear Stearns from the Dresdner Kleinwort Wasserstein hedge fund unit. to increase staff. Tricks and Rooney will all report to sales trading head Hamish MacLellan. FoF business Swiss listed Partners Group profits. The company aid Dixon and Trick join Bear Stearns along with non-hedge fund hire and former J.

Horlick`s Bramdean looking to float alternatives fund.11 Trillion.31% so far in 2006 Bond Exchange of South Africa and Clade Investment create South African Hedge Fund Index Ohio pension fund kept $215m hedge fund loss under wraps prior to 2004 national vote.72 trillion in Q2 2006 World`s biggest pension fund (US$871bn) under pressure to diversify its portfolio outside of equities and bonds Global mutual fund industry worth $19. Vehicles run by U.S.Henderson launches fund of Henderson hedge funds CAIA invites Londoners to its Chartered Alternative Investment Analyst Program DeAM expands hedge fund focus in Germany. An index of merger arb hedge funds compiled by Hennessee Group LLC climbed 1. more than any other type of hedge fund. once preserve of PE New research examines early reporting habits of hedge funds and CTAs Traditional asset managers continue tapping into alternative assets through acquisitions Estimated hedge fund assets increase to $1. Global pension assets reach $19 trillion (end of 2004) Lehman Brothers hires Abukhadra for hedge fund expansion (also invmt banks rush to Dubai) Aug 1 – Aug10 With London office. Cazenove aims to raise up to GBP75m in FoF IPO Grasso`s pay boosted using longer-lived female life expectancy statistics Merger arb managers tracked by The Barclay Group returned 7. especially distressed funds. Switzerland and Scandinavia. firm lose 23% Flight to quality increases assets 70% at Europe`s top 10 hedge funds U. leaving it up 8. Mellon expands family office services outside US Mellon Capital rolls out fourth portable alpha fund .K.51% in June.92% during the first six months of the year. hires Optimal`s Simeon Debate breaks out over new ETF paradigm Hot hedge funds stall in Japan. More hedge funds fail.

G. Top European firms have EUR136bln pension deficits. 8 Wall Street brokers indicted for pump & dump scheme involving hedge fund to inflate share price . technology still struggling to cope Berkshire profit rises 62%.S.46% London Pensions Fund Authority has hired IBM`s Suzanne Ross as investment director FTSE pension deficits GBP36bn despite record contributions. distressed-debt holders not afraid letting companies go bankrupt to boost gains Credit derivative growth surges by 106% in 2005. laying off 300 Credit Suisse poaches new head for Australian hedge-fund sales from Deutsche Bank. Buffett cuts currency bet. Losses 23% in H1 plus `significant losses in July` Water hedge funds with 22% return since starting April 2005. asset management business. wants to grow prime brokerage A $26bln market: Banks `falling over themselves to be within top three prime brokers used by any hedge fund` International banks flocking to new Dubai special financial district Abu Dhabi Investment Authority searches advisor for treasury & alternative investments Award winning London hedge fund group sets up Asian headquarters in Sydney KGR Capital`s European Office gains authorisation from UK FSA Mitsubishi Corp to dissolve Cayman hedge fund unit China Mantou fund with 31.000. daily liquidity available for $10m. EUR53bln not recognised on balance sheets Credit Suisse to restructure U.6% YTD $430m New York energy hedge fund to close after big natural gas losses. Hedge funds. B of A adds 650 to Wealth Management Division. announces new anti-fraud rule. the commodity of the 21st century? Dow Jones-AIG Commodity Index now in Swiss Franc and British Pound R. SEC to redo hedge-fund rules instead of appealing rejection. What happened to the expected wave of junk defaults?.Lawyer: `A lot` of London FoF floats put back to autumn Advisor hits retirement market with hedge fund-style multi manager mutual fund Global Advisors ` Global Commodity Systematic Program returns +33. SEC Chairman Christopher Cox`s statement. Niederhoffer launches 6th fund. addresses grandfathering reliefs Comment: Levitt on SEC-CFTC Merger More Goldman traders aim to set up $1bln+ hedge funds Dalman`s WMG loses GBP240.

6% In hiring Terence Moll. international stocks and private equity top asset classes..K financial advisers are still uncomfortable with their complexities Tremont executive Barry Colvon joins Balyasny Asset Management as Vice Chairman CalPERS assets gain 12. Mel Gunewardena joins from Goldman Sachs to build fixed income unit Mutual funds do better when manager is an investor.News Briefs: Alpha Beta fund of funds posts 16. profit up 18. Lloyd George restructures LG Asian Plus fund: Lloyd George Management. the Hong Kong. reduce risk. more.and Londonbased asset manager. RAB posts pre-tax profit jumps 192% Deutsche Bank significantly strengthens prime brokerage. Ibbotson study finds hedge funds diversify. has restructured its LG Asian Plus fund after the loss of its two managers in June The end of the carry trade – really? FT columnist says check out the Swiss Frank (FT25/07/060 Dow Jones Islamic Market BRIC Equal Weighted Index launched: Dow Jones Indexes has launched an index that measures the performance of companies in the Brazil. add alpha even when corrected for survivorship and backfill biases 26/JUL Funds of hedge funds deserve a place in many (retail) portfolios but U..6% to $131m JPMorgan alumni launch emerging markets fund of funds: NY-based Dolomite Credit Suisse and Liquidnet partner to expand institutional marketplace. Local London pension makes first foray into alternatives. Russell 1000 Value Index vs equivalent growth index. Pioneer Investments hires Railpen`s Griff Williams as institutional product strategist. and for UK FTSE 250 Value index FTSE Private Banking Index welcomes 40th member . Investec brings hedge fund skill in-house Investcorp AUM break $10bln. study says Naim Abou-Jaoude at Dexia Asset Management in Paris.3% for fiscal year .real estate. Russia.6% YTD return 21/jul06: ***Dutch pension ABP to spin off its US hedge fund unit Capital Economic calculates that oil producers’ export revenues have increased by $400 bn as a result of oil price increases. India and offshore China markets that pass screens for compliance with Islamic principles. absolute return strategies with 11.

K. has added the AM Investment V Fund to the Fimat Volatility Arbitrage Median or FVAM. managed assets exceeds GBP3. 90 funds now included in Nordic Hedge Fund Index. lists hedge fund employment trends.000bln. HFA raises A$270m for Asian fund of hedge funds Jupiter`s Kevin Meehan joins Credit Suisse as Asian prime services head Gary Vaugn-Smith departs Abn amro Long-only fund managers who are given hedge funds to run must be watched `like a hawk` Investor appetite grows for relative value. up 20%. Bay Harbour Management LC's 90-1 fund posted strong returns in May and June. Full implications of hedge fund rule defeat not yet understood Value of U. LODH`s FoF investment process qualified as `strong` by independent rating firm Fitch Ratings Daniel Hausammann joins Credit Suisse as Head of Total Return Family of Multi Asset Class Solutions Morgan Stanley to launch liability driven fund with underlying hedge FoF Background: High powered WisdomTree (Steinhardt) enters ETF market . in association with eFinancialCareers. allowing long term investment opportunities MARHedge Career Center. Partners jumps 5.. thanks to the monetization of certain investments 3/Jul – LONDON (HedgeWorld.3% on solid H1 inflows BNP Paribas and Armajaro offer commodity hedge fund linked structured product Deutsche star launches hedge fund boutique CZ Capital. losing 17. Coronation International plans to entice non-SA investors. Mauritius-based India Capital Management Inc experienced its first major reverse of the year in May. Eurekahedge launches world`s largest Shariah-compliant fund database Hard landing. It is the ninth fund to be included in the FVAM. CTA and multi-strategy hedge funds. but no crash landing in Iceland Most hedge funds to remain registered. L/S may see significant outflows over coming months Carbon Trading Ltd has launched a hedge fund that focuses on carbon emissions. Watson Wyatt: Carbon trading market likely to—Fimat.5%.. Seven Investment Management gets three bid approaches.. Renaissance plunders Pictet pair...• • • • • SG stands by poor performing hedge fund. . smaller firms may de-register in easy procedure. the global brokerage firm. research and job postings Port Louis.

K. **updb Simon Bound of Morgan Stanley has been tapped to be a partner focusing on investment advisory at London-based hedge fund Fulcrum Asset Management. U.. has been hired as general counsel with FIM Advisers in the firm’s London office. – **send Cv *updb: Bryan Collings. as chief of staff.K.K. Russia. India and China. previously of Baring Asset Management. ISDA publishes documentation for CDS on CDOs Court hearing crucial in deciding whether investors in SPhinX Managed Futures Fund ever see any of their money again London: Tudor team splits to launch fund Blackstone opens HK office for fund of hedge funds .7 million) for the listing of its Close AllBlue Fund Limited. investors and managed by BlueCrest Capital Management. Philip Niel. AIMA hits back at ABI call for HF transparencySwedish Agenta launched first hedge FoF UK FSA monitors daily CDS prices and loan trading markets for insider trading Rab Capital plans GBP150m IPO for fund Companies finance share repurchases via convertibles market Germany lowers reporting requirements for company holdings to 3% Singapore Exchange to accept hedge funds listings from 29 June 2006 26 Jun 2006: Deutsche to distribute Dexion funds.. PhD. a fund of hedge funds aimed at U.-based Close Fund Management says it has raised £145 million (US$269.’s Key Asset Management has been hired to manage the US$44 million fund of hedge funds portfolio of Belgian pension fund Amonis. has joined Londonbased Resolution Asset Management as head of a global emerging markets fund focusing on Brazil. Altegris Investments hires Laura Pyle. most recently with Citigroup Private Bank. The U.Other Voices: The Wine Investment Fund offers tasty returns PWC survey: Search of true alpha becomes ´enormous challenge´ New SocGen multi asset ETF includes hedge fund exposure. 7 June onwards Deutsche Bank issues certificate on Singapore based QAM Global Equities Fund Derivative to ease buying of CDO risk.

More closed-end funds invest in hedge funds SEC turns attention to hedge fund side letters BGI report trounces `Five myths about fees` *****find : Hedge funds have improved risk practices – study. UK. AIS Ltd. Germany Can I trade funds as opposed to holding and paying management fees? 30/03/06 FSA may open retail door to hedge funds . The ABCs of going the alpha. ***********CHARLES STANLEY******************* Hegde Fund Action Plan Implementation Present marketing strategy for distribution channels (qv. dividend based ETFs Morongiello`s Caliburn Capital starts first global investment fund Current currection could lift London-listed hedge FoFs from GBP2bln to GBP3bln shortly Bank sponsored absolute return funds come close to hedge funds in returns.Indy Hedge funds keep record pace: 37 new funds per week in Cayman Steinhardt backed WisdomTree launches 20 new. fees. FIM Asset Management hires two from Nordea. raises GBP85m in oversubscribed new share issue Hedge fund manager raids 80 from UBS to build `one of the biggest high net worth investment management firms` Morley Fund Management solicits hedge fund manager. old fund closes JPMorgan kick-starts European structured products unit. beta way – hfd_news280206) Hedging listed-firms’ hedge funds via shorting listed fund management eg. EDHEC disagrees with the ECB on systemic risks of hedge funds 25 May06 Turkey drafts new regulation allowing the set up and distribution of hedge funds and FoFs Hedge fund manager Roger Guy gets GBP30m to stick with Gartmore after buy out Close complete largest ever UK hedge fund listing.

capital one of the industry's fastest-growing centers.. said investment returns probably would worsen because of all the money pouring into the industry. but the Financial Services Authority is expected to r . according to the 2006 edition of the International Financial Services.THE City's financial watchdog will this week pave the way for hedge funds to be sold to small investors.. These hedge funds use a strategy known in the business as &quo .. making almost as much money in the opening weeks of 2006 as they did in all of 2005. London Hedge Funds Pass US$225 Billion in 2005: IFSL March 21 2006 Black Enterprise .. founder of the world's largest hedge fund firm. S&P's overall hedge .K..A growing recognition that convertible bonds are cheap combined with the busiest month for merger activity since early 2000 to boost hedge fund performance in February. Hedge funds getting fat on mergers March 22 2006 CNN Money . It is currently illegal to market hedge funds to ordinary investors in Britain. hedge funds that bet on mergers are on a tear. more. FSA: Disclose Side Letters 03/23/2006 . Standard & Poor's said on Thursday.Hedge fund assets managed from London grew 18% to US$225 billion. UK Hedge funds laws to be relaxed March 20 2006 Scotsman . Gottex to launch Asian fund of funds Lausanne-based Gottex Fund Management will launch the Gottex Tiger Fund on April 1. S&P. making the U..... London hedge fund report ..Convertible bond hedge funds star in February March 20 2006 Reuters .David Shaw. A hedge fund chief's worries March 23 2006 International Herald Tribune .Thanks to a spate of blockbuster deals..Retail investors in the UK may soon be able to invest in hedge fund products under proposals currently being considered by the Financial Services Authority. "There's an enormous amount of capital now chasing .

com)—The U. Investment Management Association urges FSA to address tax treatments of hedge FoFs with HM Revenue and Customs.. FSA stresses proper valuation UK FSA to investigate hedge funds over claims of bias for larger investors. Abria Alternative launches energy-focused fund of funds March 23. Dexion Alpha Strategies raises GBP130m in FoF IPO UK FSA for the first time excluded a hedge fund manager from working in the City after he falsely inflated returns from his $200 million fund. Lawyer says FSA proposal little chance to succeed unless offshore taxes scrapped. • • Asia..NEW YORK (HedgeWorld.. operations and risk management system for emerging markets. FoF gives mixed review.Goldman Sachs survey March 23. driven in large part by investor inflows from Asia and the Middle East..COM) • • • • UBS: Return per risk unit hasn`t changed in hedge funds but institutions as main drivers drive down risk and returns Morgan Stanley to seek `small bolt-on` hedge fund acquisitions to overcome revenue weakness AIM-TO launches trade. more. 2006 Thursday (Infovest21 News) Investor groups see 28 pct hedge funds growth in 2006 . Financial Services Authority's effort to supervise hedge funds is focusing on service providers. 2006 Thursday (AFX. according to a Goldman Sachs Prime Brokerage survey released this week.K. asset valuation problems and side letters.. . Middle East to fuel HF investment Global investment in hedge funds is expected to increase a healthy 28% this year.. . fixed income and global macro FSA confirms Funds of Hedge Funds to be fit for UK Retail Market..