Falcone Shuts Down Fund Slowly

Chidem Kurdas

Philip Falcone, mired in persistent losses and legal problems, is liquidating

Soft Lock-Up Fees Vary

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Managers’ need for long-term capital and investors’ aversion to

Can Permal Buck Trend?

Funds of funds as a group have not recovered

Highland Crisis Takeaway

Chidem Kurdas

Credit specialist Highland Capital is bringing its crisis woes to a surprisingly successful end after three years. Remaining clients, among them large and experienced funds of funds, sound content with the way the managers handled the situation. But the firm has significantly less assets now compared to before the crisis. 

Resilience Despite Japan, Mideast Crises

Chidem Kurdas

There were dramatic reversals in hedge fund asset growth over the past five years in response to certain incidents, as documented in the new capital movement index series from fund administrator GlobeOp.  Have recent events – political turmoil in the Middle East, nuclear threat in Japan after the earthquake and tsunami – affected hedge funds?

To Separate or Not to Separate

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Separately managed accounts looked like the way to avoid unexpected suspensions of redemption as happened in the 2008 crisis, as well as rip-offs. Separate accounts, unlike shares in a fund, remain in the investor’s control. But there are downsides, both for  managers and their clients. You hear more about the negatives now.

John Phinney Jr., chief operating officer of Apollo Capital Markets, says managed accounts have unintended

Mergers and acquisitions Spook Investors

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Getting more capital together is often the main motive for a merger or acquisition. But the resulting business is often less than the sum of the parts. It ends up with less assets than the two combined managers had separately because some investors  redeem in response to the change. 

Derivatives Traders Get Attention

Some large investors expect to put more money into futures and options trading funds while reducing their allocation to private equity.

Cerberus SPV Makes High Return

Chidem Kurdas

Long-suffering clients of Stephen Feinberg’s Cerberus Capital Management received good news this fall—an early holiday gift, you might say.  It concerned the special-purpose vehicle set up to contain assets that became toxic and just about unsellable in 2008-2009. 

Distressed Credit Woes Influence Investors

Once burnt, twice shy, goes an old adage. Bad experience with distressed credit investments – considered very promising at the start of the real estate downturn – has put fund clients off this strategy.