DOCSLIB.ORG

Managed Accounts Driving the Revolution in Transparency

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Managed Accounts Driving the Revolution in Transparency Managed Accounts Driving the revolution in transparency April 2016 Main sponsor Associate sponsors SPECIAL REPORT/MANAGED ACCOUNTS EDITORIAL/SUBSCRIPTIONS 04 07 This report was researched and written by Philip Moore, special reports writer for Hedge Fund Intelligence. Alternative TLC Receding scepticism Editor Nick Evans [email protected] Managing director David Antin [email protected] Commercial director Robert Dunn [email protected] 08 10 Advertising and sponsorship/Europe Ian Sanderson [email protected] Pension funds Rising institutional Advertising and sponsorship/US James Barfield fuel change demand [email protected] Data and research manager Damian Alexander [email protected] Data and research Siobhán Hallissey Production Michael Hunt 13 14 Subscription sales UK (and for reprints) Future growth The regulatory UK Ruta Balasaityte potential driver [email protected] Asia/Europe Joel Dudden [email protected] US Augusta McKie [email protected] 15 16 Hedge Fund Intelligence is the most comprehensive provider of hedge fund news The growth Not just a and data in the world. With five titles – AsiaHedge, EuroHedge, InvestHedge, of liquid alts defensive tool Absolute Return and Absolute UCITS – we have the largest and the most knowledgeable editorial and research teams of any hedge fund information provider. We collect and supply information on more than 17,000 hedge funds and funds of hedge funds, and provide comprehensive analysis from across the globe. 19 20 We also produce a number of highly regarded events throughout the year, including conferences which attract top-level industry speakers and delegates, and awards The appeal of lower fees Every basis point counts dinners which honour the best-performing risk-adjusted funds of the year. Published by Hedge Fund Intelligence, 8 Bouverie Street, London, EC4Y 8AX, United Kingdom Email [email protected] 20 21 Telephone +44 (0)20 7779 7330 Fax +44 (0)20 7779 7331 A positive Helping emerging Website www.hedgefundintelligence.com selection bias? managers Disclaimer: This publication is for information purposes only. It is not investment advice and any mention of a fund is in no way an offer to sell or a solicitation to buy the fund. Any information in this publication should not be the basis for an investment decision. Hedge Fund Intelligence does not guarantee and takes no responsibility for the accuracy of the information or the statistics contained in 22 this document. Subscribers should not circulate this publication to members of the public, as sales of the products mentioned may not be eligible or suitable for general sale in some countries. Copyright in Demand for institutional bespoke solutions drives growth this document is owned by Hedge Fund Intelligence Limited and any unauthorised copying, distribution, selling or lending of this document is prohibited. All rights reserved. of managed account platforms/ Siobhán Hallissey 2 hedgefundintelligence.com 2016/MANAGED ACCOUNTS Institutional investors demand greater control and customisation Managed accounts take centre stage for hedge fund allocation ince the global financial crisis managed accounts IN TERMS OF COST AND have gone from being a relative sideshow in the FLEXIBILITY, MANAGED hedge fund universe – and historically a rather un- ACCOUNTS OFFER BENEFITS popular one with most asset managers – to being TO THE INVESTOR THAT one of the foremost drivers of change and growth COMMINGLED FUNDS OFTEN CANNOT MATCH Sacross the industry. Fuelled by growing institutional demand for greater control and customisation over their investments, managed accounts have taken centre stage in the re-ordering of the way in which major investors allocate to hedge funds – and in the liquidity and transparency that they require. In terms of cost and flexibility, managed accounts offer bene- fits to the investor that commingled funds often cannot match. And there are few managers these days that remain unwilling to offer separately managed accounts, either to investors directly or via the various managed account platforms that are growing rapidly as a result of this sea change in hedge fund investment trends. In this special Hedge Fund Intelligence report, Philip Moore looks at the transformation of the managed account business in recent years, the potential for future growth and innovation to come and the ways in which managed accounts are reshap- ing the whole landscape of hedge fund investing for investors, managers and intermediaries alike. Nick Evans, editor, Hedge Fund Intelligence hedgefundintelligence.com 3 MANAGED ACCOUNTS/2016 Managed accounts: driving the transparency revolution s recently as 2012, Keith Haydon “Managed accounts link asset owners’ capital – the chief investment officer at to asset managers’ investment strategies Man FRM, the London-based fund while separating back and middle office, of hedge funds specialist which governance, control and oversight respon- Awas set up in 1991 and became a division of sibilities from trading activities,” it explains. the Man Group in 2012 – was sceptical about “By combining asset managers’ strategies and managed accounts. traditional service providers within an inde- Today he is a firm believer – which is just pendent investment vehicle (managed account), as well, given that Man FRM now has over $8 asset owners obtain an enhanced and inde- billion on the managed account platform that pendently governed investment framework.” it originally set up for its internal use. The firm adds: “The strength of a managed The financial firepower that the Man FRM account resides in the clear separation of group has put into developing its platform responsibilities between the parties involved. certainly helped to accelerate Haydon’s epiph- The independent nature of the managed any. But there are plenty of other very good account seeks to ensure that conflicts of reasons explaining why Haydon has been per- interest are mitigated and investment activi- suaded of the merits of managed accounts, ties are governed using best practices.” and why his confidence in their continued growth is shared across large swathes of the ALTERNATIVE TLC alternative investment management industry. This is very different from the way in which The growing popularity of managed investors traditionally accessed hedge accounts is attributed chiefly to the protec- fund strategies, which was through direct tion of investors’ assets that they provide. exposure to commingled funds, or through Definitions and types of managed accounts indirect participation via funds of hedge – also known as separately managed funds. Either way, they were exposed to the accounts – differ. But in a nutshell, in a same panoply of dangers, which ranged from managed account the underlying assets are outright fraud to the risks associated with owned by the investor and registered in the opacity and illiquidity that came to the fore investor’s name. in the global financial crisis. This means that the hedge fund manager’s “Firms running large multi-manager role is concentrated on day-to-day invest- portfolios under the old model are exposed ment management decisions. Operational as- to a number of risks,” says David Saunders, pects such as the appointment of third-party co-founder and chief executive officer of the service providers – including prime brokers, hedge fund investment advisory firm K2 Advi- administrators and custodians – are the David Saunders, sors. Since 2012, K2 has been part of Franklin responsibility of the investor or, more usually, co-founder and CEO, Templeton, which had $742.6 billion in assets the managed account platform. under management as of March 31 2016. K2 Advisors Montreal-based Innocap gives a neat “One risk is that they relinquished control, summary of the benefits of this arrangement. which has been delegated to the respective 4 hedgefundintelligence.com 2016/MANAGED ACCOUNTS IT BECAME ESSENTIAL THAT WE CHANGED More specifically, Haydon says that he had THE NATURE OF OUR RELATIONSHIP WITH two principal reservations about managed MANAGERS AND MOVED TO A STRUCTURE account platforms. The first arose from the WHERE WE AS A PUBLICLY LISTED FIDUCIARY promises that a number of platforms were OVERSEE THE ASSETS AND ARE ABLE TO HAVE making at the time about the transparency THEM PRICED INDEPENDENTLY EACH TRADING they could deliver for their clients. “It was all DAY, SO THAT WE CAN CREATE THE LIQUIDITY very well promising to provide tens of thou- THAT OUR CLIENTS DEMAND AND EXPECT sands of line items of data every day,” Hay- DAVID SAUNDERS, K2 ADVISORS don recalls. “My concern was that it would not be much help providing clients with all hedge fund managers,” says Ben Browning, this data if they did not have efficient ways of who heads K2’s hedge fund managed account turning this into meaningful information.” business. “This means they may not be able Haydon’s second misgiving about managed to access their capital quickly if we experi- account platforms in 2012 was a familiar ence another 2008-style event.” one among investors at the time. “I had my Browning adds: “The second risk was that doubts that the platforms could solve the they were dependent on the hedge fund problem of negative selection bias,” he says. managers, or service providers selected This is a reference to the suspicion that by the respective hedge fund manager, for the only managers
Load more

Recommended publications
  • 20170308 Item 10.Pdf
    Memorandum To Water & Power Employees’ Retirement Plan (“The Plan”) From RVK, Inc. (“RVK”) Subject Custom FoHF Finalist Recommendation Date February 23, 2017 Recommendation After reviewing the RFP responses for the custom Fund of Hedges Funds RFP, Plan Staff and RVK recommend that the Board interview the following finalist candidates: • BlackRock, Inc. • Blackstone Alternative Asset Management • Goldman Sachs Asset Management • Grosvenor Capital Management Background The Plan and RVK launched a Request for Proposal (“RFP”) for custom Fund of Hedge Fund mandate in the fourth quarter of 2016. Respondents were required to complete the RFP by October 24, 2016. The following minimum qualifications (“MQs”) were used to initially reduce the universe to a list of appropriate candidates. 1. Offeror must have at least $7.5 billion in discretionary assets under management in institutional multi-strategy fund of hedge fund portfolios. 2. Offeror must have at least ten years of experience managing discretionary, multi- strategy Hedge Fund of One portfolios and include this performance history in the proposal 3. Offeror must certify in writing that it will act as a fiduciary when performing these services and be bound by Prudent Investor Rule standards. 4. Offeror must be an investment advisor registered with the SEC or otherwise exempt from registration. If exempt, the Manager must explain the nature of their exemption from registration. (Form ADV, Parts 1 and 2, must be submitted). 5. The Offeror must comply with City of Los Angeles and the Los Angeles Department of Water and Power requirements 6. The successful Offeror must agree to obtain a City of Los Angeles Business Tax Registration Certificate.
    [Show full text]
  • By John W. Labuszewski, Managing Director Research and Product Development
    RESEARCH AND PRODUCT DEVELOPMENT By John W. Labuszewski, Managing Director Research and Product Development To contact CME Group with questions or comments about Managed Futures CLICK HERE cmegroup.com How Clearing Models Manage Risk THE BEST RISK MANAGEMENT StArtS With a central counterparty model, the clearing house is the buyer to every seller and the seller to every buyer. So, if Trader A defaults, the WITH SECURITY default is contained between Trader A and the clearing house, protecting everyone in the green circles below. In today’s market environment, effective risk management requires an KiX[\i8KiX[\i8 KiX[\i9KiX[\i9 ;\]Xlckj;\]Xlckj 9lp`e^]ifd9lp`e^]ifd ever-greater emphasis on limiting counterparty credit risk. At CME Group, feKiX[\feKiX[\ KiX[\i8KiX[\i8 we believe our financial safeguards system, designed for the benefit and protection of all participants in our markets, is second to none. CME Group’s benchmark futures and options contracts, backed by our centralized counterparty clearing model and comprehensive set of risk KiX[\i8:ljkfd\ijKiX[\i8:ljkfd\ij KiX[\i9:ljkfd\ijKiX[\i9:ljkfd\ij Gifk\Zk\[Gifk\Zk\[ Gifk\Zk\[Gifk\Zk\[ management services, offer powerful solutions for navigating confidently :\ekiXc:flek\igXikp:\ekiXc:flek\igXikp through an uncertain world. :fekX`ej;\]Xlck:fekX`ej;\]Xlck • Central counterparty guarantee of CME Clearing that ensures the financial integrity of every trade The over-the-counter market’s bilateral model works differently. If Trader A defaults, neither Trader A, Trader B, nor the others they • Segregation of customer funds and a $7 billion financial safeguards transact business with are protected from the default, leaving everyone in the orange circles at risk.
    [Show full text]
  • Vision Financial Markets LLC: Understanding Professionally
    RISK DISCLOSURE STATEMENT TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY FUTURES CONTRACT OR SELL A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS OR SECURITY DEPOSIT AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT. UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A ‘‘LIMIT MOVE.’’ THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A ‘‘STOP- LOSS’’ OR ‘‘STOP-LIMIT’’ ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
    [Show full text]
  • David Walter Joined Double Haven As Head of Client Solutions from PAAMCO
    David Walter joined Double Haven as Head of Client Solutions from PAAMCO Hong Kong – May 2, 2018. We are pleased to announce that David Walter has joined Double Haven Capital (Hong Kong) Limited in the position of Head of Client Solutions. David joins Double Haven from PAAMCO (one of the world’s leading institutional Fund of Hedge Funds) where he was a Director based in Asia. He has been involved in the Asian Hedge Fund Industry for over twenty years both as an allocator and through working with major institutional investors all over the world. Going forward, David will be leading the Firm’s fund raising strategy, and we are excited to bring David’s extensive knowledge, experience and market presence to the Firm. Darryl Flint, Double Haven’s Founder and CIO, adds: “This is a notable achievement for us to be able to bring a person with David’s experience and market standing into our team, and we look forward to the new direction that the Firm’s marketing effort will take under his stewardship.” David Walter Introduction David Walter joins the Double Haven team from April 2018 and is responsible for all client facing activities within the firm as well as the development of new products tailored to clients’ needs. He has been in the hedge fund industry for over 20 years and investing in Asia for over 30 years. Most recently he was a director at PAAMCO in Singapore, where he was responsible for the business development of the Firm’s Asian portfolios on a global basis and for sourcing and implementing investment ideas across Asia in multiple asset classes.
    [Show full text]
  • Managed Futures Division Consider the State of the Stock Market Over the Past 25-35 Years…
    Managed Futures Division Consider the state of the stock market over the past 25-35 years… …Now imagine if over the past 5 worst period declines for stocks since 1987, you could Introduction make positive returns in your investment portfolio… …Or imagine if your investments could outperform stocks during the most critical events of the last 4 decades… As we continue, I will validate these findings and hopefully pique your interest regarding the use of Managed Futures in your portfolio. STRAITS FINANCIAL MANAGED FUTURES DIVISION | 1 Managed Futures is an investment class that may provide the opportunity for diversification not typically available in traditional stock and bond portfolios and used by investors seeking to diversify their portfolios for more than thirty years. The Managed Futures industry is comprised of professional money managers known as What are Commodity Trading Advisors (“CTAs”) who trade on behalf of investors using their own Managed Futures? unique trading system usually through analysis of fundamental or technical factors. Generally, a CTA takes a market position when, in their opinion, the potential for profit outweighs the risk of the trade. Each CTA must be registered as a Commodity Trading Advisor with the National Futures Association (“NFA”), the industry’s self-regulatory organization authorized by Congress in 1982, or the CTA must have filed an exemption with the NFA. STRAITS FINANCIAL MANAGED FUTURES DIVISION | 2 Commodity Trading Advisors may potentially offer investors benefits similar to those experienced with mutual funds and other investment advisors. These include: Professional 1. Full-time commitment to the markets and their trading programs Money Management 2.
    [Show full text]
  • Second Quarter Hedge Fund of Funds Performance Report As of June 30, 2010
    3. Presentation by Pension Consulting Alliance, Inc. - Second Quarter Hedge Fund of Funds Performance Report as of June 30, 2010 3 Water and Power Employees’ Retirement Plan (WPERP) Hedge Fund of Funds Investment Portfolio Quarterly Report Executive Summary This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Pension Consulting Alliance, Inc. Nothing herein is intended to serve as investment advice, a recommendation of any particular investment or type of investment, a suggestion of the merits of purchasing or selling securities, or an invitation or inducement to engage in investment activity. Pension Consulting Alliance Inc J 2010 Quarterly Report Q2-10 HEDGE FUND OF FUNDS PORTFOLIO SUMMARY As of June 30, 2010, the WPERP Hedge Fund of Funds Portfolio had an aggregate value of $70.0 million. Recent Investment Performance Trends During the most recent quarter, the WPERP Hedge Fund of Funds Portfolio underperformed its policy benchmark by minus (2.3%), net of fees. Over the latest 1-year period, the portfolio outperformed its benchmark by 6.7%, net of fees. The Portfolio trailed its policy benchmark over the latest 3-year time period. Underperformance over longer time periods can be attributed to severe market corrections in the second half of 2008. However, due to a strong 2009-2010, longer-term performance has improved significantly. Since inception, portfolio performance has been positive, resulting in no principal loss. The Total Portfolio surpassed the Median Fund over all time periods. The WPERP portfolio added significant value over the Median Fund since inception, outperforming 3.4%, net of fees.
    [Show full text]
  • Price Asset Management Brochure Rev-1-09.Indd
    PRICE Asset Management Alternative Investments Group MANAGED FUTURES Portfolio Diversifi cation Opportunities Table of Contents Benefi ts of Managed Futures Page 1 Introduction to the Firm Page 6 Managed Futures Specialists Page 7 Portfolio Construction Process Page 8 This brochure is neither an offering document nor a solicitation. Investing in managed futures is speculative, involves a high degree of risk, and is not suitable for all investors. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PRICE Asset Management Alternative Investments Group Introduction The Value of Diversifi cation The term managed futures describes an industry Today, a variety of academic research and evidence made up of professional money managers that demonstrates the potential benefi t of incorporating manage assets on behalf of their clients. Using managed futures to create better balance to a stock the global futures markets, they implement their and bond portfolio. systems to take positions based on expected profi t potential. Although futures investments involve substantial risk and are not suitable for everyone, the general conclusion Managed futures investments have been used by is that diversifi cation of non-correlated asset classes, individual investors for more than 25 years. More such as the introduction of managed futures to an recently, institutional investors such as pension investment portfolio, can both reduce portfolio risk funds, banks, endowments, trusts and family and enhance overall portfolio performance. offi ces have incorporated
    [Show full text]
  • These Terms Are Synonymous with Expectations for An
    These terms are synonymous with expectations A global macro strategy primarily bases its holdings for an improving market, industry, or security. on overall economic and political views of various countries (i.e., macroeconomic principles). An investor who expects a specific industry to increase in value would be “bullish” on that Holdings may include long and short positions in industry, and would likely “buy” or “go long” that various equity, fixed income, currency, and futures industry. markets. The strategy is typically based on forecasts and analyses about interest rate trends, the global flow of funds, political changes, government policies and These terms are synonymous with expectations for relations, and other global factors. a declining market, industry, or security. An investor who expects a specific industry to decrease in value would be “bearish” on that industry, and would likely “sell” or “go short” that Global macro maintains a long history of delivering industry. attractive returns and providing diversification benefits, including low correlation (but typically not negative) to traditional asset classes. The strategy also typically operates globally, which can increases geographic diversification to a client portfolio. Global macro requires either a talented manager (like long / short equity) or a very sophisticated process. Because there are so many moving parts, the “good ideas” or “winning trades” are often watered down or completely voided by the bad trades. In a managed futures account, Commodity Trading Advisors go long or short futures contracts for various assets dependent on market trends. For example, if soybeans have been trending lower for an extended period of time, a Commodity Trading Advisors will “go short” this contract.
    [Show full text]
  • Managed Accounts 2018 New Ambitions, New Solutions
    Managed Accounts 2018 New ambitions, new solutions INCP-020_pub-INNOCAP_v01r2_203x273mm_bleed.pdf 3 2018-05-15 10:50 AM June 2018 Sponsors SOCIETE GENERALE PRIME SERVICES PROVIDING CROSS ASSET SOLUTIONS IN EXECUTION, CLEARING AND FINANCING ACROSS EQUITIES, FIXED INCOME, FOREIGN EXCHANGE INNOCAP.COMHedgeMark AND COMMODITIES VIA PHYSICAL OR SYNTHETIC INSTRUMENTS. CIB.SOCIETEGENERALE.COM/PRIMESERVICES THIS COMMUNICATION IS FOR PROFESSIONAL CLIENTS ONLY AND IS NOT DIRECTED AT RETAIL CLIENTS. Societe Generale is a French credit institution (bank) authorised and supervised by the European Central Bank (ECB) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) (the French Prudential Control and Resolution Authority) and regulated by the Autorité des marchés financiers (the French financial markets regulator) (AMF). Societe Generale, London Branch is authorised by the ECB, the ACPR and the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (FCA) and the PRA. Details about the extent of our authorisation, supervision and regulation by the above mentioned authorities are available from us on request. © GettyImages - FRED & FARID PARIS SOGE_METI_CIB_1705_EUROHEDGE_205x272_PLANETES_GB.indd 1 14/04/2017 15:29 NEW CLIENTS. NEW OFFICES. SAME TEAM. Managed Account Platform INCP-020_pub-INNOCAP_v01r2_203x273mm_bleed.pdf 3 2018-05-15 10:50 AM INNOCAP.COM NEW CLIENTS. NEW OFFICES. SAME TEAM. Managed Account Platform SPECIAL REPORT/MANAGED ACCOUNTS New ambitions, new solutions EDITORIAL/SUBSCRIPTIONS
    [Show full text]
  • Avinash Verma
    AVINASH VERMA Compass Lexecon Tel: 213.416.9935 55 South Lake Avenue Fax: 213.416.9945 Suite 650 Email: [email protected] Pasadena, CA 91101 EDUCATION Ph.D., Finance, University of California, Berkeley, CA. MBA, Finance and Marketing, University of Delhi, Delhi, India. B.Sc., Physics, Mathematics, and Chemistry, Jiwaji University, Gwalior, M.P., India. PROFESSIONL EXPERIENCE Compass Lexecon, Pasadena, CA, (2011-Present): Vice President CRA International, Inc., Boston, MA, (2004-2005): Consultant LECG, Inc., Emeryville, CA, (1998-2003): Consultant ACADEMIC EXPERIENCE 2010-2011 A. Gary Anderson Graduate School of Management, University of California, Riverside, CA 2008-2010 Lundquist College of Business, University of Oregon, Eugene, OR 2007-2008 McCombs School of Business, University of Texas at Austin, TX 2007-Present, Haas School of Business, University of California, Berkeley, CA 1999-2003 1996-1998 Jesse H. Jones Graduate School of Administration, Rice University, Houston, TX Spring 1996 School of Business, Indiana University, Bloomington, IN 1994-1995 John M. Olin School of Business, Washington University, St. Louis, MO Fall 1993 Indian Institute of Management, Bangalore, India 1988-1993 University of Massachusetts, Amherst, MA TESTIMONY Testified in arbitration proceedings, in the matter of a dispute between Andrew Laszlo and Lillian Laszlo, vs. Morgan Stanley and Antony Gordon, March 2004. My testimony dealt with construction and dynamic rebalancing of a portfolio of stocks so as to track returns on a given stock. CONSULTING ASSIGNMENTS • Estimated probability of default in a prominent bankruptcy litigation using market indicia such as bond prices, and CDS spreads. • Constructed What-if models for analyzing the impact of various allegations in the context of litigation ensuing the bankruptcy of a prominent hedge fund invested in Agency Floating Rate RMBS.
    [Show full text]
  • MCM Disclosure Document
    MOLINERO CAPITAL MANAGEMENT LLP 17 Wigmore Street London W1U 1PQ Phone: +44 (0) 207 078 7637 Fax: +44 (0) 207 692 7961 Email: [email protected] DISCLOSURE DOCUMENT FEBRUARY 2011 PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT. 1 RISK DISCLOSURE STATEMENT THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION.
    [Show full text]
  • Managed Trading
    Schwager on Futures Managed Tradin g More critical praise for Managed Trading . "Managed Trading is worthwhile reading fo r anyone who is in the busines s o f money management." —Jeff Yas s Managing Director Susquehanna Investment s "Jack has written the definitive books on technical and fundamen­ tal analysis; no w he addresse s the ultimate investmen t strategy— a diversified portfolio of managers. A must­read for institutional investors, pensio n fun d trustees , an d mone y managers. " —Blair Hull Managing Principal Hull Trading "Managed Trading i s a valuabl e contributio n t o th e literatur e on managed futures. Schwage r provides a lucid examination o f performance evaluatio n procedure s an d portfoli o considera ­ tions. 1 am confident that this book will be beneficial to investors and trading professionals." —Morton S. Barat z Executive Vic e Presiden t an d CO O Allied Capital Asset Management, Inc. Schwager on Futures Series Schwager on Futures FUNDAMENTAL ANALYSIS ^ TECHNICA L ANALYSIS > MANAGE D TRADING: MYTHS & TRUTHS A STUDY GUIDE FOR FUNDAMENTAL ANALYSIS . A STUDY GUIDE FOR TECHNICAL ANALYSIS Managed Trading Myths & Truth s 1 Jack D . Schwage r John Wiley & Sons, Inc. New York • Chicheste r • Brisban e • Toront o • Singapor e With love to my son Daniel, whose solid character and sense of humor are a constant source of delight, who waited patiently, and impatiently, for this book and its two companion volumes to be completed, with a promise to make up for our time lost. Foreword My experience on Wall Street suggests that the financial world is permeated with mythology.
    [Show full text]