On Their Minds…

Its officially summer – at least according to those in the business of selling summer – however, as we enter a time of the year that typically consists of relaxation, reflection, preparation and the obligatory barbecues, questions about the future of the hedge fund industry are on managers, investors, service providers and regulators’ minds alike.

At IIR, the summer is a time for research, planning and strategizing, we work hard during this time to develop and create programs to make sure they are hitting on the subjects that matter to delegates in the second half of the year and the early part of 2013.

Our goal is simple, provide delegates and sponsors with objective programs that help them grow and expand their businesses. As such we are interested in talking to you and your colleagues, if you want to get involved or believe you have something to add, please get in touch with us at ait@iirusa.com. We want to hear from you. Don’t be shy.

Recently, we came across an interesting survey of the hedge fund industry conducted by the good folks at KPMG and AIMA. The report, titled “The Evolution of An Industry” was generated from surveys and interviews of managers around the world during the period of October 2011 to February 2012.

The goal of the exercise was to provide information on what is on the minds of hedge fund managers on issues ranging from transparency and asset flows to regulatory matters and due diligence.

Approximately 150 managers with assets ranging from under $100 million to $10 billion responded to the request for information. We think you will find the survey quite interesting. This is real insight into what is on the minds of folks shaping the hedge fund industry.

To download and read the survey results click here.

Thanks again for your continued support of IIR's alternative investment events.  We look forward to welcoming you to one of our programs in the future. If you would like more information about a program, or have questions comments or concerns, feel free to email us at ait@iirusa.com any time. Your insight is important to us.

Read more »

The Evolving Hedge Fund Industry

USA flag at half-mast during Memorial Day. The flag is located at the National World War 2 Memorial in Washington, D.C. (Photo credit: Wikipedia)

This week like most others in the first five months of year, the news about the future of the hedge fund industry has been, well a bit confusing.

There are stories of consolidation and closures as well as comments about the need for more regulation as hedge funds were blamed for the losses amassed by the London Whale.

Good bad and indifferent were elements found in many if not all of the coverage about the hedge fund industry in the last seven days.

Well here is what we think; the industry is in transition. As we conduct our research into where the industry is headed in an effort to provide the most relevant and thought provoking programs, we continue to here both positive and negative comments about the hedge fund industry.

Our view is that many, both in and outside of the hedge fund industry, are working hard to find answers that will generate returns in these extremely volatile markets while working within the ever changing parameters set out by the powers that be.

Over the next few months it’s sure bet that the changes will continue during this time, it’s very important to stay focused on where the industry is heading. Our programs will deal with these issues head on - missing them is something you don’t want to do. To learn more about what we are doing in alternatives click here .

As the Memorial Day holiday weekend approaches, we wanted to remind all of you to enjoy the time away from the office with family and friends – the things that matter most. Stay tuned because the coverage is only getting better.

Read more »

Dot your I’s and cross your T’s because it is all about risk

The lesson coming about the latest round in the battle for Yahoo is simple; tell the truth the whole truth and nothing but the truth because if you don’t well, be prepared to make an exit. However Third Point’s assault on Yahoo is just one example of how investors are taking a more active role in how their companies are being managed.

Incorrect information on a resume is not the only thing that is important to investors – showing up – well that counts too. Just last month, Ricardo Salgado was forced to resign from the board of NYSE Euronext because he failed to attend enough board meetings. That being said, corporate governance or the lack thereof is clearly on the mind of investors and managers around the globe. Rarely a day goes by when an article does not appear in the popular press about what the board is doing however what we have not seen is many stories on what board members are thinking.

When we did some digging, we found the folks at EisnerAmper LLP just released the results of the third annual survey of corporate directors – which took the temperature of board members around the country. The study which is downloadable through this link provides real insight into the minds of those tasked with overseeing Corporate America. We hope you enjoy it.

As always if you questions comments or concerns please get in touch.

Read more »

It's All About JOBS

The hedge fund industry is alive and well despite some reports of its demise. And while performance year to date does not seem to be all that strong, investors regardless of the size of their wallets are still allocating to Wall Street’s forbidden fruit.

Performance or lack thereof may be what’s on the minds of many outside the industry, however what seems to be on the minds on those in the industry is the JOBS bill.

The Jobs bill or the Jumpstart Our Business Startups Act, was signed into law by the President on April 5, 2012, is intended to help small business in attracting capital to grow and expand its business and reduce some of the burdensome regulations placed on privately held companies by Sarbanes Oxley. There are specific provisions regarding crowd funding and the rules regarding solicitation and advertising for “specific kinds of private placements” of securities. Enter the hedge fund and private equity industry.

As you know our goal at IIR is to have our fingers on the pulse of the industry and well let’s just say the blood is pumping with material on how this law is going to affect the industry.

We thought it'd be valuable for you, our fearless readers, to provide you with a summary of what the jobs bill is all about and also provide you with some commentary on how it is expected to affect the way funds raise money. Now we are not lawyers so instead of going to law school and coming up with our own conclusions, we went to the web and sourced material from firms we know are active in the industry. To be clear we are not providing legal advice nor are we endorsing any of the firms whose links you will find below but rather providing you with an entry point to access the information. With apologies to any firms that we left off the links list– there was many – please click below to access the information:

• Alston & Bird LLP
• Bingham McCutchen LLP
• Cadwalader, Wickersham & Taft LLP
• Seward & Kissel LLP
• Tannenbaum Helpern Syracuse & Hirschtritt LLP
• Ropes and Gray LLP

As always, if you have any questions, comments or concerns please feel free to email any member of the IIR alternative investment team. Thanks again for reading what we have to say and enjoy.

Read more »

New White Paper Available: Data from GAIM Ops Cayman

Due Diligence here, due diligence there, due diligence everywhere; was the rallying cry of 500 people, who attended GAIM Ops Cayman last week.

The conversation was fast and furious and most importantly full of insight into what hedge fund managers, investors and directors are doing to protect themselves from fraud and potential blow-ups, a more aggressive Securities and Exchange Commission and of course are dealing with new regulations. Speakers and delegates dialogued about everything from the role of off-shore directors and FACTA to Form PF and raising assets in the new regulatory environment.

During some of the sessions we did real-time audience polling the results of which are illustrated below. In most cases the sample size ranged from 100 to 200 participants and while we are positive our methodology was not scientific the results are quite insightful.

Take a look below and let us know what you think.

We are working on a short white paper that will provide more in depth information on the data that was collected from the real-time polling. To receive the white paper, please sign up below. In the meantime, sit back, relax and enjoy the data.
 

Read more »