March 2013 Hedgeweek Awards 2013 LEADING THE WAY UNRIVALLED IN CHOICE, QUALITY AND EXPERIENCE LYXOR MANAGED ACCOUNT PLATFORM, INNOVATING SINCE 1998 With $11bn assets under management*, only Lyxor’s Managed Account Platform gives access to over 100 managers, selected among the best in the industry. With the addition of weekly liquidity**, unrivalled transparency and sophisticated monitoring features, you can invest with confidence. We offer investors much more than a platform, we offer our unrivalled experience. Think Managed Accounts, Think Lyxor. HedgeWeek Best Managed Account Platform 2012 • HFMWeek Most Innovative Managed Account Platform 2012 • The Hedge Fund Journal The Leading Managed Account Platform 2012 • Hedge Funds Review #1 Managed Account Platform from Hedge Fund/FoHF viewpoint Dec 2011 For more information visit www.lyxor.com or email [email protected] * As at 31st December 2012. ** 95% of the funds on Lyxor MAP offer weekly liquidity. 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C52551 A4 297x210.indd 1 18/03/2013 18:28 CONTENTS AWARDS 2013 04 Hedgeweek Global Awards 17 IMQubator 2013 results Best Hedge Fund Seeding Platform 05 Winners focus on good 18 Deutsche Börse Group governance and consistent returns Best European Trading Venue By James Williams 20 Anchin, Block & Anchin LLP 06 Mendon Capital Advisors Best North American Accounting Firm Best Equity Long/Short Manager 21 Kinetic Partners 07 Winton Capital Management Best European Regulatory Advisory Firm Best Managed Futures/CTA 22 Walek & Associates 08 Dexia Asset Management Best North American Public Relations Firm Best Fixed Income Manager 23 Tannenbaum Helpern Syracuse 09 Hedge Fund Research & Hirschtritt LLP Best Index Provider Best North American Law Firm 10 Meridian Fund Services 25 Peregrine Communications Best Offshore Hedge Fund Administrator Best European Public Relations Firm 14 Lyxor Asset Management 26 Agecroft Partners LLC Best Managed Accounts Platform Best Third-Party Marketing Firm 15 Deutsche Bank 27 Lockton Companies LLP Best Asian Prime Broker Best Global Insurance Provider 16 Newedge Best European Prime Broker Publisher Editor: James Williams, [email protected] Sales Managers: Simon Broch, [email protected]; Malcolm Dunn, [email protected] Head of Events: Katie Gopal, [email protected] Chief Operating Officer: Oliver Bradley, [email protected] Chairman & Publisher: Sunil Gopalan, [email protected] Graphic Design: Siobhan Brownlow, [email protected] Photographs: William Scott Published by: GFM Ltd, 1st Floor, Liberation Station, St Helier, Jersey JE2 3AS, Channel Islands Tel: +44 (0)1534 719780 Website: www.globalfundmedia.com ©Copyright 2013 GFM Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. HEDGEWEEK AWARDS Special Report Mar 2013 www.hedgeweek.com | 3 RESULTS The winners AWARDS 2013 Best Long/Short Fund Manager Best North American Hedge Best North American Trading Mendon Capital Advisors Fund Administrator Venue Best Market Neutral Fund SS&C GlobeOp NYSE Manager Best Asian Hedge Fund Best Asian Trading Venue Insight Investment Management Administrator TKSE Best Relative Value Fund Citi Best North American Accounting Manager Best European Hedge Fund Firm Axa Investment Managers Administrator Anchin, Block & Anchin LLP Best Credit Fund Manager Maples Fund Services Best European Accounting Firm MKP Capital Best Offshore Hedge Fund Deloitte Best Distressed Securities Administrator Best North American Regulatory Manager Meridian Global Fund Services Group Advisory Firm Swiss Capital Alternative Investments Best North America Prime IMS AG, Zurich Broker Best European Regulatory Best Managed Futures CTA Pershing Prime Services Advisory Firm Winton Capital Best European Prime Broker Kinetic Partners Best Fixed Income Fund Manager Newedge Best Offshore Regulatory Dexia Asset Management Best Asia Prime Broker Advisory Firm Best Absolute Return Fund Deutsche Bank Ogier Manager Best Managed Accounts Best North American Public Bernheim, Dreyfus & Co Platform Relations Firm Best Global Macro Fund Lyxor Asset Management Walek & Associates Manager Best UCITS Platform Best European Public Relations The Cambridge Strategy Alpha UCITS Firm Best Event Driven Fund Manager Best Hedge Fund Seeding Peregrine Communications Cube Capital LLP Platform Best North American Law Firm Best UCITS-Compliant Product IMQubator Tannenbaum Helpern Syracuse & Deutsche Bank X Markets Best Risk Management Software Hirschtritt LLP Best Diversified Fund of Hedge PerTrac RiskPlus Best European Law Firm Funds Manager Best Fund Accounting & Simmons & Simmons Liongate Capital Management Reporting System Best Offshore Law Firm Best Specialist Fund of Hedge Tradar Walkers Funds Manager Best Managed Accounts Best Third Party Marketing Firm Financial Risk Management (FRM) Technology Agecroft Partners LLC Best Index Provider EIM LumX Best Global Insurance Provider Hedge Fund Research Best European Trading Venue Lockton Companies LLP Deutsche Bourse HEDGEWEEK AWARDS Special Report Mar 2013 www.hedgeweek.com | 4 THE HEDGE FUND INDUSTRY TODAY Winners focus on good governance and consistent returns By James Williams The winners of hedgeweek’s Global (Managed Account Platform) UK, Lyxor Asset Awards 2013 gathered at an awards Management, who delivered the introductory presentation lunch sponsored by Lyxor Asset address at the Awards. Management in London’s Mayfair earlier As it happens, institutions continued to this month. allocate to such an extent that industry-wide All agreed that last year was far from a assets topped USD2.25trillion and total net watershed for the hedge fund industry. Some inflows for 2012 were USD34.4billion. managers pointed to the fact that average Sunil Gopalan, hedgeweek’s Publisher returns of 6.2 per cent (according to the says, “What this tells us, in no uncertain HFRI index) did nothing more than paper terms, is that the face of the industry has over the cracks of 2011, when the average undergone a facelift. No longer dominated by hedge fund lost some 5 per cent, but were HNW individuals, this is a far more grown- an institutional investor to take such a up market where sophisticated institutions simplistic view, they would have missed out allocate for the long-term. Managers should on countless compelling opportunities at the take reassurance from this. The only strategy level. downside, potentially, is that we will continue “On Lyxor’s Managed Account Platform to see bifurcation, whereby large managers for instance 11 out of 14 investable strategy net the majority of new assets.” indices were in positive territory. A handful “In a lower return environment, the posting double digits returns,” comments distribution of wealth between investors and Philippe de Beaupuy, Head of MAP managers is increasingly challenged. Big 11 HEDGEWEEK AWARDS Special Report Mar 2013 www.hedgeweek.com | 5 MENDON CAPITAL ADVISORS Mendon Capital Advisors Best Equity Long/Short Manager Mendon Capital Advisors is based in small-cap companies, who are likely to Rochester, New York. Founded in 1996 by become the target of M&A activity. Anton Schutz, the fund employs a long/short “We still do multi-cap but my bigger wins equity strategy with an event-driven slant, tend to come from the smaller names where and focuses primarily on the US financial I really have an edge; I understand their services sector. franchise, and I have a good idea of who Since inception, the fund has managed would likely buy them,” says Schutz, adding to generate annualised returns of 14.20 per that the team currently monitors between 600 cent, with an annualised risk-free rate of 0.10 and 800 names. per cent and a Sharpe Ratio of 4.00 (through Schutz is a bottom-up stock picker and January 2013). physically shorts stocks although in periods The long book typically holds between 40 Anton Schutz, Founder, of low volatility these might be substituted and 60 positions, while the short book holds Mendon Capital Advisors with individual put options. When trying to between 15 and 30 positions. identify shorts, Schutz says that there a Schutz spent 10 years at Chase number of factors: firstly, the credit quality Manhattan Bank before setting up Mendon. of the institution and subsequent loan This, he says, gave him a deep strategic composition. Secondly, where are they in the insight into the operational ways that banks M&A space? “Are they a seller or a buyer, get managed. and if so are they a stupid buyer? Certainly, “The reason I chose to start this fund undisciplined acquirers are a key factor to was so I could focus on the consolidation consider when shorting. of US banking. It’s already gone through a One of Mendon Capital’s strengths is the tremendous wave of consolidation but there ability to build positions on the long side way are still 7,000 banks in the US,” notes Schutz. in advance of any expected takeover deal. This Indeed, while the strategy is able to pursue is where Schutz’s expertise comes into play. opportunities across the financial services “We meet with management teams literally sector, it’s really banks and thrifts that hundreds of times a year. We know the ins provide the main focus. and outs of these companies. We don’t just The fund’s objectives are essentially know the numbers, we know the people.