Never a dull moment…

Just when we thought things were settling down for the Thanksgiving break, the hedge fund industry is rocked with another insider trading scandal. Once again, hedge funds are on the hot seat.

 Here is a quick round up of the news over the last few days that will make for some interesting reading during the next few days:

• From the Wall Street Journal: Hedge Fund Manager Had His Finger on the Pulse of Elan 
• From Bloomberg: Brevan Howard on Hiring Spree as Hedge Fund Rebuilds in New York 
• From Reuters: Worries on U.S. taxes drive hedge fund exits to near 3-year high 
• From Associated Press: Ex-hedge fund trader charged in $276 million insider ploy 
• From Barron’s: Investors in Hedge Fund Credit Strategies Get Worried 

Take a look. Each story provides a bit of light reading that is sure to keep you occupied over the next few days to prepare you for the last month of the year. However to get a clear and focused understanding of the impact of another insider trading scandal, increased taxes, questions about yields and hiring trends will affect the industry in the weeks, months and years ahead, you need to come to GAIM USA in January.

This year’s program provides real insight and debate on these issues and more. So don’t delay, register today in order to make sure you and your organization are prepared for what lies ahead. Click here to download the brochure - Click here to register.

 Have a happy and meaningful Thanksgiving!
-The IIR Alternatives Team

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What’s Next … Growth all Around!

In the wake of last week’s election it seems that the hedge fund industry is poised for great growth in both new fund launches and assets under management in 2013. Now that we know who will be residing in the White House for the next four years, the industry has clear picture on which way regulation will be heading in the short and long term.

(Photo: 401(K) 2012)

The rules of the game have become clearer and Wall Street and the powers that be are in a better position to play. Next up is a ruling by the SEC on the Jobs Act.

Our research says look for this final determination before year-end. The wild card of course remains the uncertainty around returns. As the fiscal cliff looms and volatility around the world continues, managers are having a difficult time putting up returns.

That being said investors regardless of the size of their portfolios continue to want to invest in funds that make money no matter which way the markets are moving.

This we believe will be the driver of new fund launches and asset growth in 2013.

GAIM USA’s agenda is focused on understanding policy challenges, the impact of regulation, asset allocation trends and new fund launches; making it the must attend event for investors, managers and solution providers. We look forward to seeing you in Boca this January.

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Stormy Tweets Start Sensation…

Hedge fund analyst, Shashank Tripathi, wins Twitter’s Frankenstein of the week award.  According to Buzzfeed,  Tripathi, through his handle @ComfortablySmug, posted a series of blatantly false tweets:

BREAKING:CON EDISON SHUTTING OFF ALL POWER IN NEW YORK CITY AT 3AM IN ANTICIPATION OF POWER SURGES FROM HURRICANE SANDY
— ComfortablySmug (@ComfortablySmug) October 28, 2012

BREAKING:Governor Cuomo is trapped in Manhattan.Has been taken to a secure shelter
— ComfortablySmug (@ComfortablySmug) October 30, 2012

BREAKING:Confirmed flooding on NYSE.The trading floor is flooded under more than 3 feet of water.
— ComfortablySmug (@ComfortablySmug) October 30, 2012

 Net net, pretty harmless, right?  Well here’s the scary part.  He has over 6,500 followers.

Tripathi’s actions are predicated on the perfect storm of emotions that define the broader economic and political sentiments we have been experiencing as a nation since the crises of 2008.   People are scared. Hungry for information. Vulnerable.  And we think it is safe to say that vulnerability is one of the biggest feeders to gullibility.

The result? There’s an overt and terrifying willingness to believe the unbelievable.  As investors start to revisit mortgage back securities, as dark pools continue to thrive, as even the middle hanging fruit has been plucked, one thing is certain - in an attempt not to follow the lemmings over one cliff, the contrarians might just be lemmings in sheeps’ clothing jumping over another one.  How do you know what to believe anymore?  How do you know who to believe?

In order to sift through the lightning bolts of misinformation, investors, managers and information providers to the finance community must commit to hearing myriad perspectives, opposing viewpoints, and conflicting information.  That’s why our events at IIR are dedicated to providing the whole picture.

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