Lemelson Capital featured in HFMWeek

www.hfmweek .com

JP MORGAN ASSET Manage-ment is preparing to seed Aithon Capital Management, a new hedge fund manager being launched by Soros Fund Management and Caxton Associates alumnus Hal Lehr.

HFMWeek was first to report on Tuesday that Aithon will launch on 2 January with $100m and JP Morgan will account for more than half the initial assets.

Aithon will deploy a global macro strategy within a master feeder structure, using relative value approaches across a spec-

trum of commodities and liq-uid macro instruments. It uses a proprietary investment process, called Precursors, Predictors and Events (PPE) that Lehr devised for research and risk.

Lehr was a commodity trad-ing executive at Deutsche Bank until leaving at the end of 2012, before which he held positions at Harbert Management Corp., Soros Fund Management and Caxton Associates.

Upon leaving Deutsche Bank, Lehr was originally going to launch a hedge fund but decided to spend 2013 in a portfolio advi-sory capacity for Carlyle Group-owned hedge fund Vermillion Asset Management.

Lehr has filled Aithons team with six other people he has worked with at

z Hal Lehr plans 2 January start for Aithonz News breaks as 20 for 2015 list releasedBY ELANA MARGULIES

03

COMMENT CL ARIF YING CFTC EXEMPTIVE RELIEF AND GUIDANCE 14

Former Caxton, Soros pro backed by JP Morgan

WHO WANTS TO BE AN SEC TARGET?LAWYERS SAY TAKE-UP OF THE JOBS ACTS ADVERTISING FLEXIBILITIES IS LIKELY TO BE LIMITED

FEATURE 20

The long and the short of it ISSUE 354 25 September 2014

NEWS 11

OMNI PARTNERS LAUNCHES LONG/SHORT HEDGE FUNDLondon rm starts fourth strategy as internal offering opens up

LAUNCH 05

MILLENNIUM-LINKED PINZ CAPITAL PLANS LAUNCHMatthew Pinz to lead New Yorks latest event-driven launch

NEWS 06

CREDIT SUISSE HIRES NEW EUROPEAN CONSULTING CHIEFSwiss bank swoops for ODD specialist Vincent Vandenbroucke

20 FOR 2015

FEATURE 16

HFMWeek lists the 20 launches generating the most interest among investors

One part of hedge fund management just got easier:Finding the right advice to fit your size.

Whether youre building a hedge fund from the ground up or managing a large global fund platform, finding the right assistancefrom launch to globalizationjust got easier.

Combining the resources and experience of KPMG and Rothstein Kass means superior service, market-leading insights and global reach. All under one roof.

For more information, contact Chris Mears [email protected]

kpmg.com/us/alts

2 5 S E P 1 O C T 2 0 14

NEWS

H F M W E E K . CO M 3

If you have a news story for HFMWeek, please email: [email protected]

PEOPLE MOVES

various times in his career from Harbert, Deutsche Bank, Morgan Stanley and Soros.

Aithon has 2/20 fees, quarterly liquidity and a $1m investment minimum. Service providers include Deutsche Bank as prime broker and Akin Gump Strauss Hauer & Feld as legal counsel.

Aithon and JP Morgan spokes-persons declined to comment.

The news coincides with the release of 20 for 2015, HFMWeeks annual list of impend-ing launches (see page 16), which comes as confidence rises among prime brokers about the market.

We are in the most robust hedge fund start-up market since the crisis the days of the $1bn launch are well and truly back, said Omeed Malik, who heads Bank of America Merrill Lynchs emerging manager program and US prime brokerage distribution.

It feels exactly the same here,

said Carl Davey, who runs hedge fund sales in Asia for Citi Investor Services. We are seeing a good number of new firms led by pedi-greed managers.

Four of the 20 managers on this years list are based in Asia, com-pared to just two last year, echo-ing improving confidence about the market for new hedge funds in the region.

However, opinion was split among HFMWeek readers, with just over half describing the state of the global launch market as middling and the remainder roughly split on the prospects for new hedge funds (see page five).

Long/short equity is the best-represented strategy on the list. It is the strategy of choice for investors, added Malik, and also where you are seeing the largest, most high-profile and best-pedi-greed start-up managers.

Turn to page 16 for the full [email protected] reporting by Will Wainewright

CONTINUED FROM PAGE 1

Alcentra 8Arkkan Capital Management 7Balyasny Asset Management 5BozValen Asset Management 7Caxton Associates 1, 5DragonBack Capital 7Duet Group 5, 6Eagle Bay Capital 11Gemcorp 5Gondor Capital Management 10Hermes BPK 6Highbridge Capital Management 8HT Capital Management 7JP Morgan Asset Managemet 1K2 Advisors 10Kontiki Capital Management 7Lampe, Conway & Co 10Millennium Management 5Moore Capital Management 5Mount Kellett Capital 7Omni Partners 11Ouroboros Asset Management 10Pinz Capital Management 5Pleiad Investment Advisors 7Quantum Global Investment Mgmt 6Shoreline Capital 8Soros Fund Management 1TT International 11Two Creeks Capital Management 7Viking Global Investors 5

FUND MANAGER INDEX

I N T H I S

I SSUE

KCERA mulls hedge fund investments KERN COUNTY Employees Retirement Association (KCERA) is mulling up to two more hedge fund investments as it awaits the chance to allocate to soft-closed activist manager Cevian Capital.

The $3.5bn pension scheme has signed off a $17m allocation to Stockholm-based Cevian Capital, an event-driven firm with $13.6bn AuM, but must wait for other inves-tors to redeem before it can invest as the fund has soft-closed.

KCERAs CIO Pete Tirp said that allocation was likely to happen in the next two quarters, making Cevian Capital the sixth hedge fund to be hired by KCERA this year.

He said the pension is conduct-ing due diligence on two other hedge funds with a view to adding at least one more to reach its target exposure level of 10% before the end of 2014. KCERA has 13 hedge fund managers approved or invest-ed in including Cevian [email protected]

HSBC prime services head leaves roleHSBC PRIME SERVICES global head of sales Chris Barrow has left his role.

Barrow headed up the London-headquartered banks sales and mar-keting efforts until Friday, a source told HFMWeek.

He remains listed on the FCA register in connection with HSBC but a bank spokesperson declined to comment on his next move.

HSBCs hire of Barrow in early 2010 was described at the time as one of the most high-profile addi-tions to its prime services team.

Barrow joined HSBC from Normura, where he was internation-al head of sales for prime services. He had a previous stint at HSBC between 2004 and 2007 as head of sales and marketing for the global equity finance team.

HSBC established its prime ser-vices team in 2009, gaining market share by bringing together its custo-dy business and global markets [email protected]

SEARCH

W e are in the most robust hedge fund start-up market since the crisis, a senior prime broker from Bank of America Merrill Lynch told us this week.

Its a bullish view of launch activ-ity echoed by many of his peers we spoke to as part of our 20 for 2015 run-down of start-ups tipped to make the biggest impression next year (p.16-19).

As youd expect, the list is domi-nated by US funds but also includes a number of notable London launches and four Hong Kong-based start-ups, which experts say is an indication of a renewed buzz not seen in the region for years.

Events at SAC Capital Advisors and the closure of Ziff Brothers hedge fund investing unit have added momentum to the current wave of high-profile new launches, trigger-ing managers with pedigree to go it alone.

The growing number of soft clo-sures is also creating an attractive environment for start-ups that man-age to get off the ground.

Although some investors are wary

of investing in unproven funds, oth-ers see the potential for uplift in the early years. Hedge Fund Research data weve compiled (p. 4) shows the huge outperformance of emerg-ing managers, 80.5% since 2007 compared to an industry benchmark of 33%.

But there are also significant chal-lenges for funds looking to launch. This weeks readers survey suggests many managers are less sanguine about the new launch market (p. 5).

Panellists at last weeks HFMWeek breakfast briefing in London said the introduction of the AFIMD had sty-mied launch activity in Europe and pointed to the length of time taken to get regulated in the UK, up to nine-months in some cases, as being a significant barrier.

Although some clarity is still required around the AIFMD, a more stable regulatory outlook may well boost launches in the region next year.

A bigger talking point may well be the size of the launch market which will be made up of Ucits rather than traditional Cayman-based funds. Definitely one to watch. Q

[email protected]

EDITORS VIEWBY PAUL McMILLAN

@mcmillan_paul

P A G E

I N S I G H T

2 5 S E P 1 O C T 2 0 144 H F M W E E K . CO M

NEW MANAGERS LEAD THE WAY SOURCE: HEDGE FUND RESEARCHEmerging hedge fund managers continue to lead industry performance, according to Hedge Fund Research data. Managers with a track record of less than two years posted one-year returns of 11.27%, compared to 9.05% for the HFRI Fund Weighted Composite Index. Funds owned by women and ethnic minorities also continued to outperform with the HFRI Diversity Index posting returns of 11.09% over the same period. Since the start of 2007, emerging managers returns are 80.5%, or an annualised 8.19%, compared to the diversity index on 51%, annualised at 5.67% and the HFRI Fund Weighted Composite Index at 33%, annualised at 3.94%. The HFRI Fund of Funds Composite Index struggled behind the others with total returns of 12.28%, annualised at 1.56%, with an annual volatility of 5.86%, higher than the emerging manager index volatility of 5.16%. Meanwhile, launch activity

appears to be steady with 574 launches in the first half of the year compared to between 1,060 and 1,113 for the previous three full years. Liquidations appear around the same as 2013 with 461 in the first half of 2014, compared to 904 in 2013, a figure that has steadily risen since the 743 liquidated in 2010.

MAR

KET

MON

ITOR

BEN

CHM

ARKS

HIG

HS&

LOW

SINDEX PERFORMANCE 22 Aug - 22 Sep 2014 (%)FTSE 100 NASDAQ S&P500 HFR INDEX

YTD RETURNS SOURCE: HSBC ALTERNATIVE INVESTMENT GROUP

HEDGE FUNDS

Pershing Square Intl Ltd

29.89%Pharo Trading Fund

21.34%CC Asia Absolute Return Fund

-20.06%Rubicon GlobalFund

-23.27%

HIGH

LOW-1.2-1.0-0.8

-0.6

-0.4

-0.2

-0.0

0.2

0.4

0.6

0.8

22/0918/0916/0912/0910/0908/0904/0902/0929/0827/0825/08

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2007 2008 2009 2010 2012 2013 2014

HFRI Fund Weighted Composite Index

HFRI Fund of Funds Composite Index

HFRI Diversity Index

New Managers

Launches

Liquidations-1200

0

400

-400

800

-800

-1600

1200

2011

2007 2008 2009 2010 2012 2013 20142011

1197

-563

-1471

-1023

-743 -775 -873 -904

-461

659784

9351113 1108 1060

574

H F M W E E K . CO M 5

Ex-Goldman partner leads Gemcorp launchA FORMER GOLDMAN SACHS partner has emerged as the CEO of Gemcorp, a new emerging markets-focused investment firm based in London.

Atanas Bostandjiev specialised in emerging markets for the US bank before joining VTB Capital International, Russias largest bank, in 2011 as UK and international CEO. He left this summer.

Gemcorp said in a statement on Monday it has raised $500m from European institutional investors to find and execute deals in emerg-ing markets. HFMWeek was first to report on the funds development earlier this year..

Bostandjiev is leading a 17-person team that includes several colleagues with whom he previously worked at Merrill Lynch.

They include managing partner Selim Basak and partner Bojidar Savkov. Tue Sando will lead the firms legal and compliance after joining as partner from Duet Group.

We want to position ourselves as the access point for institutional investors when it comes to investing in emerging market sovereign and private sectors, said Bostandjiev.

We see a gap where traditional financial institutions are unable to meet the demand from emerging mar-kets clients for flexible and reliable debt or equity financing solutions.

Gemcorp said investors have signed up to a lock-up period of five [email protected]

2 5 S E P 1 O C T 2 0 14

PINZ CAPITAL Manage-ment, which ran money for Millennium Management, has split from Izzy Englanders firm to launch its flagship event-driven strategy independently, HFMWeek has learned.

Matthew Pinzs fund, named Pinz Capital International, will debut imminently and plans to raise an ini-tial $250m from investors globally before soft-closing, according to a source familiar with the plans.

Pinz spent almost three years as a trader at Caxton Associates before joining Balyasny Asset Management as a portfolio manager in 2005, spending almost four years there. He had previously worked for Citigroup and Arnhold and S. Bleichroeder, and studied at Boston Universitys School of Management.

Pinz Capital Manage-ment, founded in March 2009, has been running money solely for Izzy Englanders firm without other outside investors.

Justin Lee, who used to work with Pinz at Balyasny as an analyst, also joined the firm for the launch. Pinz Capital charges fees of 1.5/20, has a $500,000 investment minimum and quarterly liquidity.

Pinz Capitals service providers include Jefferies as the prime broker and Mark LoPresti as the legal coun-sel. A Pinz spokesperson declined to comment.

Millennium was founded by Englander in 1999 and manages around $23.8bn, which is allocated among its numerous trading [email protected]

Millennium-linked Pinz Capital plans launchMatthew Pinz to lead New Yorks latest event-driven launch

L AUNCH

SEPTEMBER 2014

HFRXHEDGE FUND INDEX(YTD 19 SEPTEMBER 2014)IN

DICE

S MERGER ARBITRAGE

1.31%EQUITY LONG/SHORT

1.75%GLOBAL MACRO

2.52%

HEDGE FUNDS

2.02% FUNDS OF HEDGE FUNDS*

2.67%

RELATIVE VALUE

0.57%EQUITYSHORT BIAS*

-5.14%EVENT DRIVEN

3.51%

EMERGING MARKETS*

4.31%EQUITYMKT NTRL

2.38%MULTI STRATEGY*

3.04%

HFRI composite

* As of 31 August

$23.8bnMILLENNIUM

MANAGEMENT ASSETS

L AUNCH

20 FOR 2015

FEATURE P16

2 5 S E P 1 O C T 2 0 14

1 6 H F M W E E K . CO M

20 FOR 2015

As confidence in the hedge fund start-up market builds, HFMWeek examines the

pipeline and lists the 20 freshest launches generating most interest among investors

BY WILL WAINEWRIGHT

FEATURE 20 FOR 2015

hedge funds has been helped in particular by

the emergence of new seeding ventures. But while this years list features seeding

activity from names ranging from Blackstone

to Leucadia National Corp, many prime

brokers believe seed deals have become

less important in the last couple of years.

Founders share classes are becoming much

more prevalent and are largely the preferred

option, says Malik.As with the wider industry, long/short equi-

ty dominates the strategy composition of the

list. Equity long/short is certainly du jour,

adds Malik. It is the strategy of choice for

investors and also where you are seeing the

largest, most high-profile and best-pedigreed

start-up managers. The majority of the 20 for 2015 managers

have come from other hedge funds as opposed

to banks. Investors have more confidence in

the been there done that credentials of man-

agers who have been PMs at other hedge funds,

but a few continue to make it from other back-

grounds, says Davey. A senior prime broker

in London says the failure of Goldman Sachs

spinout Edoma Partners, which was Europes

biggest post-2008 hedge fund launch, has not

helped the reputation of bank spinouts.Managers need the three Ps: pedigree,

performance and product, says Malik. That

gets you in the door. But these managers

from brand-name hedge funds fall into two

categories those who were investor facing

and those who werent. The cream of the crop

money managers built LP relationships, and

investors were able to build trust in them and

their processes.Investors are much likelier to come in day

one to those managers. It separates the $100m

launch from the $1bn launch.That assets total, as ever, remains the Holy

Grail for new hedge fund launches. The next

12 months will determine how many of this

years crop reach it.

T he post-crisis era has proved chal-lenging for new hedge funds, but industry participants have become notably bullish about the start-up market. We are in the most robust hedge fund start-up market since the crisis the days of the $1bn launch are well and truly back, claims Omeed Malik, who heads Bank of America Merrill Lynchs emerging manager programme and US prime brokerage distribution.It feels exactly the same here, says Carl Davey, who runs hedge fund sales for Citi Investor Services in Asia. We are seeing a good number of new firms led by pedigreed managers, who are building institutional-grade infrastructures and attracting significant day-one capital.The positivity seems to be borne out by the numbers, with several constituents of last years list of new hedge funds raising more than $1bn, and at least one Herb Wagners Finepoint Capital surpassing $2bn. Sources say a per-fect storm of factors have combined to provoke the uptick in interest, all of which have impacted HFMWeeks latest round-up.

The downsizing of SAC Capital Advisors, since

re-named Point72 Asset Management, and clo-

sure of Ziff Brothers hedge fund investing unit

have both had big impacts. Four constituents of

this years list are being launched by managers

who previously held senior positions at Ziff, while

three worked at Point72. A further three new

firms recently launched by SAC alumni in the UK

Ayora Capital Management, Pagliaro Capital

Management and HSE Capital Management

have also generated headlines, but did not make

the list. Observers say another factor swelling the

launch numbers for new firms is the fact that many

brand-name hedge funds are closed to new mon-

ey, improving the appeal of new hedge funds start-

ed by alumni of those firms. A number of higher-

profile managers here in Asia are soft-closed to

new money, which has provided opportunities for

new launches to enter the market, adds Davey.

His colleague Carol Teng, who works for Citis

cap intro team, adds that the rise of new seeding

efforts such as HS Group has boosted the mar-

ket. The fundraising environment for new Asian

ABBERTON CAPITAL MANAGEMENTFOUNDER: Fredrik JunttiFOUNDED: April 2014, LondonOne third of the founding trio behind Montrica

Investment Management, a pre-crisis success

story later swallowed up by TPG Axon, Juntti is

returning with Abberton Capital Management, a

highly tipped London-based start-up. His earlier

co-founders are coincidentally also launch-

ing ventures this year Svein Hogset with

Incentive AS in Norway and Andrew Metcalfe

with Lakefour Investment Management in

Switzerland but sources say Abberton looks

set to raise the most backing. Meditor Capital

Management COO Craig Simkins has been

brought on to run operations for Abberton, an

activist investment firm, which was planning

to launch next quarter with assets of around

$200m.016_019_HFM354_20for2015.indd 16

VIKING CTO DEPARTS

NICK LAGAROS HAS LEFT HIS ROLE as chief technology officer at Viking Global Investors, sister title HFMTechnology has learned.

Lagaros had been CTO since June 2010. Previously, Lagaros spent 16 years at Moore Capital Management in a similar position and has also worked in IT at Swiss Bank.

Viking, with reported AUM of $24bn and headquartered in Connecticut, declined to comment on the move other than to confirm Lagaross exit.

The firm recently restructured its chief investment officer position, with Tom Purcell, a co-CIO with Dan Sundheim, leaving his role for a six-month sabbatical in July. [email protected]

Opinion is mixed among readers on the state of the hedge fund launch market, with more than half describing it as middling in HFMWeeks reader survey. More than a quarter said it was strong, convinced by an uptick in $1bn-plus launches this year, but almost the same amount described it as weak . Talented managers would be put off by the high costs involved, according to 22%.

READER SURVEY

HOW DO YOU VIEW THE CURRENT HEDGE FUND LAUNCH MARKET?

Strong the launch market is healthier now than at any time since before 2008 25.9%

Middling it remains hugely challenging to launch 51.9%

Weak most talented managers choose to join existing firms rather than go it alone 22.2%

2 5 S E P - 1 O C T 2 0 146 H F M W E E K . CO M

Credit Suisse has hired Aditi Velakacharla to head a team linking po-tential investors with Asian hedge funds, Bloomberg reports. Velakacharla is expected to start in Hong Kong in November.

Steve Cohens Point72 Asset Management has lost three employees Tim Schneider, Pete Avel-lone and Shoney Katz to Ken Grif ns Citadel and money managers Chandler Bocklage and Ted Orenstein.

BlueBay Asset Manage-ment has appointed Wike Groenenberg as alternative strategy director. Groenenberg will manage the BlueBay Macro Fund and oversee investor relations.

Jefferies International has hired former Credit Suisse head of Nordic investment banking Fredrik Wranus to run a planned of ce in Stockholm.

Pioneer Underwriting Limited has appointed Simon Holt as nancial institutions underwriter for its new Financial Institutions (FI) offering. Holt was previ-ously at insurance company Travelers.

P EO P L EM O V E S

PEOPLE MOVES

Duet makes senior portfolio manager hire DUET ASSET MANAGEMENT has appointed Joe Delvaux as a senior portfolio manager within the Africa liquid strategies team.

Delvaux was formerly head of Africa and Middle East equities at Swiss fund manager Quantum Global Investment Management, where he managed its African Opportunity Fund.

His appointment was confirmed by Ayo Salami, CIO of London-based Duets Africa liquid strategies team. Prior to Quantum, Delvaux worked at Kingsley Asset Management and Insparo Asset Management.

The Duet Mena Horizon Fund was up by 22% in the year through 31 August, according to Zawya, a data provider. But Duet Global Fund Plus is down by -1.63% in 2014, according to HSBC data.

Duet was founded by Henry Gabay and Alain Schibli in 2002 and man-aged $5.3bn as of 30 June [email protected]

PEOPLE MOVESS P O N S O R E D BY

CREDIT SUISSE HAS appointed Vincent Vandenbroucke, ex-head of operational due diligence at Hermes BPK, to lead its European prime bro-kerage consulting effort.

The appointment follows the departure of John Hindley, who end-ed a four-year stint at the Swiss bank earlier this year for a partner role at recruiting firm Heidrick & Struggles.

Vandenbroucke started his new role based in Credit Suisses London office last Monday, and confirmed his appointment by telephone to HFMWeek last week.

He spent five years at Hermes BPK and also counts Soros Fund

Management among his former firms, spending almost two years as controller in its private equity department. He has also worked for Axa Investment Managers, Pioneer Alternative Investments and Olympia Capital Management.

The appointment is the latest to affect the consulting space after Deutsche Banks European head, Chris Farkas, recently left for Deloitte.

Consultants offer hedge funds sup-port with operational, technological and other matters in tandem with the lending functions offered by prime [email protected]

PEOPLE MOVES

Credit Suisse hires new European consulting chiefSwiss bank swoops for ODD specialist Vincent Vandenbroucke

AUGUST 2014

ABSOLUTE RETURN INDICESSOURCE: Newedge Prime Brokerage Group

AUG2014 EST-0.67%YTD 2014 EST-2.25%

VOL AT I L I T Y TR AD ING INDEX

SUB-INDICES

EQUITY STRATEGIES

AUG 14 2 .05%

Y TD 4.80%

TRADING STRATEGIES

AUG 14 0. 59%

Y TD 3.86%

AUG2014 EST0.82%YTD 2014 EST4.01%

COMMODIT Y TR AD ING INDEX QUANTITATIVE

AUG 14 3.89%

Y TD 6. 56%

DISCRETIONARY

AUG 14 -0. 70%

Y TD -3. 37%

AUG2014 EST1.16%YTD 2014 EST0.23%

MACROTR AD ING INDEX

SUB-INDICESIN

DIC

ES

The founder of InfraHedge, a hedge fund managed account platform, has been appointed by Barclays to run its wealth and investment management unit. Akshaya Bhargava (pictured) will start next month in replacement of Peter Horrell. Bhargava sold InfraHedge, which he launched in 2010, to State Street last year. He previously worked at Citibank for 22 years.

THE WEEK

Goldman Sachs PB hires Topkins GOLDMAN SACHS PRIME SERVICES has hired Alex Topkins from Barclays Prime Services as vice president in its capital introductions group, HFMWeek has learned.

Topkins spent over seven years in the capital introductions unit at Barclays Prime Services, which emerged in the wake of the financial crisis when Barclays bought the busi-ness from Lehman Brothers.

He initially joined Lehman Brothers in July 2007 and his most recent position was as vice president in capital introductions, a position he held since February following his pro-motion from associate vice president.

According to a source, Topkins will start in early December.

The firms declined to [email protected]

PEOPLE MOVES

H F M W E E K . CO M 72 5 S E P 1 O C T 2 0 14

Julian Robertson (pictured) has voiced concerns about the bond market, calling it a bubble that will burst in a very bad way. The Tiger Management founders fears were echoed by William Conway, a co-founder of Carlyle Group. The pair were speaking in New York at a conference organ-ised by Bloomberg. However, Conway remained optimistic on the US, saying: The American economy is the best place to invest right now.

FORMER SAC CAPITAL manager Ken Xu is launching a new hedge fund in Asia named BozValen Asset Management, one of several new firms drawing interest as buzz over Asian start-ups builds.

Xu joined Steve Cohens firm, since renamed Point72 Asset Management, in 2011 and left earlier this year to build long/short equity firm BozValen.

He is working with Simon Kemp, previous head of trading at Mount Kellett Capital, and Katherine Quinn, previously COO at HT Capital Management and DragonBack Capital, who have the same roles at BozValen.

The firm is one of four new Asia-based hedge fund operators included in 20 for 2015, HFMWeeks annual round-up of launches generating the most interest among industry partici-pants. Last years list featured just two Asia-based firms.

Carl Davey, who leads Asia hedge fund sales for Citi Investor Services, said the market for new hedge funds in Asia is stronger than at any point since the 2008 crisis.

We are seeing a good number of new firms led by pedigreed managers,

who are building institutional-grade infrastructures and attracting signifi-cant day-one capital, he said.

Kontiki Capital Management, headed by ex-Ziff Brothers Asia head Gregard Heje, and Pleiad Investment Advisors, led by a pair of Soros Fund Management alumni, are also on the list.

The fourth Asia-based launch to fea-ture is Arkkan Capital Management, headed by former Goldman Sachs special situations chief Jason Brown, who has reportedly won $200m from [email protected]

BosValen draws interest as Asia launch buzz builds Ex-SAC manager behind one of four Asia start-ups in HFM list

L AUNCH

WHO WANTS TO BE AN SEC TARGET?FEATURE P20

WEE

K I

N N

UM

BER

S

Calpers announces plan to redeem entire hedge fund

allocation

Reports of new hedge fund activist involvement prompts

quick rise in Adidass share price

Goldman Sachs Oryza Asia hedge fund has a successful rst

year of fund-raising

Elliott Management makes almost $100m by selling stake in

UK retailer Game Digital

More than two million Scots vote to remain part of the UK in last

weeks referendum

$4.5bn 4% 58.5m 55.3% $1bn

THE WEEK

2 0 H F M W E E K . CO M

URE JOBS ACT

2 5 S E P 1 O C T 2 0 14

DON STEINBRUGGE, AGECROFT PARTNERS

IT DEPENDED ON WHAT LAW FIRM YOU SPOKE TO SOME LAW FIRMS PREVIOUSLY DID NOT FEEL COMFORTABLE WITH HEDGE FUNDS PUTTING ANYTHING OUT THERE

Despite the CFTCs recent shift to allow general solicitation, lawyers say take-up of the Jobs Acts advertising flexibilities is likely to be limitedBY MAIYA KEIDAN

L ast autumn the SEC carried out Congresss instruction to remove a decades-old ban on general solicitation of private funds. However, certain voices within the SEC were said to have concerns about the effect of hedge funds engaging in mainstream adver-tising activity and the agency proposed onerous accom-panying rules which made the new regime less attractive. Lawyers told attendees at an event in New York on 11 September that 1,000 private fund managers of all kinds had applied to market under the Jobs Act by checking box 506(c) of securities offering Form D. But the hedge fund manager numbers are much lower, ac-cording to experts, with some even reported to have mis-takenly ticked the box.Under the new rules, managers can talk to the media more freely, engage in discussions on social media and at events, upgrade their websites to provide more informa-tion and advertise more generally.Several New York hedge fund lawyers have noted that while clients had approached them to consider venturing into general solicitation territory, few have proceeded. It hasnt taken off, says Kevin Scanlan, partner at Dechert. I dont have any clients that have checked the 506(c) box, although multiple clients have talked about it.One Boston-based lawyer says hes seen limited take-up from a couple of smaller managers. They are two smaller hedge fund managers really trying to raise capital and be

more aggressive through press releases, newspaper ads and the media, he says.Massachusetts-registered Lemelson Capital Manage-ment is among these firms. Chief investment officer Em-manuel Lemelson says he saw the Jobs Act as an opportu-nity to speak freely without having to choose every word carefully. We were getting good results and I thought why dont we publicise that? he adds. The firm now sends out press releases on its performance and had secured four inter-views with the press that week.TALKING TO THE PRESSSpeaking to the media is a key reason to tick the box to generally solicit, say experts. Prior to the Jobs Act, hedge fund managers could talk about the manager and their strategy but not the specifics of the fund to the media. However, this was seen as a very grey area. It depended on what law firm you spoke to some law firms previously did not feel comfortable with hedge funds putting any-thing out there, says Don Steinbrugge, managing partner at third-party marketer Agecroft Partners.And lawyers say that while many hedge fund manag-ers are not interested in TV commercials or billboards at the Super Bowl, many are interested in speaking about performance to the press. In the past if a reporter called you with incorrect data on your fund, you were not even allowed to correct them because of the anti-solicitation rules, says one US lawyer. Max Hilton, director at PR firm Peregrines New York

SEC TARGET?WHO WANTS TO BE AN

020_021_HFM354_jobsactfeature.indd 20

20 FOR 2015

TURN TO PAGE 16 FOR THIS YEARS rundown, which is heavily influenced by the closure of Ziff Brothers hedge fund unit and the downsizing of SAC Capital/Point72 in the wake of the insider trading scandal. Four of the 20 new managers last worked at Ziff Brothers, most notably Ryan Pedlow, whose New York-based Two Creeks Capital Management is one of the years largest start-ups. A further three last worked at SAC Capital.

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INVESTOR IN BRIEF S P O N S O R E D BY

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Cheshire West and Chester and the London Borough of Lambeth pen-sion funds are among the UK schemes attending the 12th Annual Local Govern-ment Pension Investment Forum on 22 October. California Public Employ-ees Retirement System (Calpers) has appointed Ted Eliopoulos as CIO. He assumes the role perma-nently having served as interim CIO since June 2013. Cliffwater has been rehired as hedge fund consultant for the $80.6bn New Jersey Division of Investment. The decision to reappoint Cliffwater on a three-year contract with two additional one-year extensions follows an RFP issued in May 2014. London-based FoHF Headstart Advisers is as-sessing further Asia-focused investments after adding a third manager concentrated on the region in July. San Francisco Employees Retirement System has delayed a vote on whether to invest in hedge funds for at least 90 days, following an investment committee meet-ing at which CIO Bill Coaker presented a plan to invest up to 15% of the $19bn funds assets in hedge funds.

CREDIT SPECIALISTS Highbridge Capital Management and Alcentra are in the running for an illiquid debt mandate from Essex County Council.

The 4.3bn ($7bn) UK local authority scheme has named the two hedge funds alongside private equity firm Partners Group as finalists for the 80m to 100m ($130.2m to $162.75m) ticket.

US-based Highbridge manages approximately $29bn across a num-ber of equity and credit hedge, long-only and longer lock-up funds. In the last few months it has significantly increased its UK presence, adding 15 employees to its London office since January.

BNY Mellon-owned Alcentra manages $23bn across 48 investment

products while Zug-based Partners Group has 30bn across private equi-ty, private debt, private real estate and private infrastructure.

The pension fund started search-ing for a manager to run a long-only, multi-illiquid debt portfolio in May when it released a request for pro-posal (RFP).

Essex County Council received interest from 32 managers, of which 15 completed and returned applica-tions.

The search for a manager to run a pooled illiquid debt fund investing in direct corporate lending, real estate lending and distressed debt was con-ducted by the pension schemes con-sultant, Hymans [email protected]

SEARCH

If you would like to comment on any investor-related news story or development, contact Alex Cardno, HFMWeek investment editor, at [email protected]

SEARCH LOG CONTINUES ON P12

TCERA struggling with hedge fund decisionTULARE COUNTY EMPLOYEES Retirement Association (TCERA) says it is struggling to reach a deci-sion on increasing hedge fund expo-sure as it mulls different approaches to allocating to the space.

The $1.07bn California pension fund has a 5% target allocation to the sector but current hedge fund exposure stands at 2.5%.

It has been mulling further hedge fund investments for the last 12 months and was due to make a deci-sion on increasing exposure at an investment committee meeting on 15 September.

It is considering FoHF Fintan Partners for a possible investment due to its fixed income approach as it seeks ways to reduce equity risk exposure, but is also considering

a risk parity approach to its entire portfolio.

These decisions were debated in TCERAs last two investment committee meetings, but retire-ment plan administrator David Kehler said no conclusion had been reached.

Our board has been struggling with the issue of our allocation to hedge funds for quite some time now, he said.

The board is looking at ways to reduce the portfolios equity risk level so a manager like Fintan may be a good fit to meet that objective. The board is also considering a risk parity approach and has been debat-ing this along with the hedge fund allocation.

I dont think the questions we have regarding our exposure to hedge funds and/or a risk parity approach will be resolved any time [email protected]

PENS ION FUND

Michigan Uni tops up Shoreline allocationTHE UNIVERSITY OF Michigan endowment invested $30m in dis-tressed and special situations manager Shoreline Capital earlier this year.

The $9.5bn Ann Arbour, Michigan-based endowment invested in the Shoreline China Value III in April, according to an investment update.

Based in Guangzhou, China, the firm makes distressed and special situ-ations investments in mainland China.

The University of Michigan endow-ment has had previous investments with Shoreline, investing $20m in Shoreline China Value II in October 2012, when it sought to diversify its exposure to distressed investments.

Shoreline started trading in 2004 and was founded by Xiaolin Zhang and Benjamin Fanger. [email protected]

ALLOC AT ION

WILTSHIRE BOND SEARCH

ESSEX COUNTY COUNCILS search comes hot on the heels of Wiltshire County Council, which has begun its own search for multi-asset credit and absolute return fixed income managers.

The 1.7bn ($2.76bn) pension fund has instructed investment consultant Mercer to start looking for managers in those areas as part of its bond allocation.

Wiltshire currently has approxi-mately 180m ($292.2m) dedicated to fixed income. The council has not yet decided how much might be allocated to the new mandate or whether the allocation will come from a reduction to traditional bond investments or from an expansion of that asset class.

The pension fund decided last year to redeem from its only FoHF, Jubilee Advisers (previously named Fauchier Partners) after placing them on watch in 2012. A timeline and further details of the search will be discussed at Wiltshires next pension fund commit-tee meeting on 11 December, but the mandate could be awarded next year.

ILLINOIS TEACHERS RETIREMENT SYSTEM TOTAL AUM $45.3bn CONSULTANT AlbourneACTIVITY Seeking two to three non-directional hedge funds for allocations of between $150m and $200m each

MERRANT FONDER

TOTAL AUM $100m ACTIVITY Seeking two manag-ers in relative value xed income

Highbridge closes in on Essex Council illiquid debt ticketAlcentra also running for 4.3bn UK schemes mandates

PERMAL GROUP

TOTAL AUM $22.3bn ACTIVITY Eyeing opportunities in event-driven and macro strategies

WILTSHIRE COUNTY COUNCIL TOTAL AUM $2.76bn CONSULTANT MercerACTIVITY Started searching for multi-asset credit and absolute return xed income managers

2 5 S E P 1 O C T 2 0 14 H F M W E E K . CO M 9

INVESTOR

NEW FIGURES OBTAINED through a Freedom of Information (FOI) Act request on the number of AIFMs outside of Europe that have opted to market into the UK through private placement are sur-prisingly low, say experts.

The FCA revealed to sister title HFMCompliance that 491 notifica-tion forms had been filed as of 26 August, with 374 using the Article 42 form for full AIFMs and 117 submitting the third-country form.

Gary Kaminsky, managing director at ConceptOne, said that with around 3,000 hedge fund investment advisers registered with the SEC alone, the number seems low.

I heard that it was less than the

FCA was expecting, said one law-yer who did not wish to be named. The UK regulator declined to comment.

The numbers are much lower than I would have expected an awful lot are scared to draw them-selves into the AIFMD, said Neil Robson, partner at Katten Munchin Rosenman. Managers cant engineer reverse solicitation, although they think they can.

My sense is the number is lower than expected, said Simon Thomas, partner at Macfarlanes, although he added the pool of funds actively marketing in Europe was probably smaller than supposed.

What the directive has done is stopped US managers coming

to London on the off-chance, he said.

Devarshi Saksena, partner at Simmons & Simmons, said he expected more managers to reg-ister once they realised the limits of reverse enquiry in the UK and in other EEA jurisdictions and as the Article 42 compliance process becomes tried and [email protected]

MIF ID I I

FCA: Mifid transparency should not hit liquidity THE MIFID II GOAL OF increased transparency should not come at the cost of reduced liquidity and must be balanced with the needs of market participants in areas such as data col-lection, according to the FCA.

Speaking at a conference on the upcoming European directive in London on Monday, the UK regu-lators director of markets David Lawton set out the diverse range of changes Mifid II would introduce from January 2017.

Mifid II is set to bring market transparency to bond and deriva-tives trading, which will need to take place on exchanges or similar venues. However, Lawton said regulators needed to take care when setting these new rules.

Mifid II weighs in favour of more transparent trading. But important questions remain about how this is done, and in particular how to increase transparency without reduc-ing liquidity, he said.

Under Mifid II best execution pro-posals a number of new standardised data requirements will be introduced but Lawton said the FCA was aware of industry concerns about the amount of data being collected.

He said: We remain conscious that more disclosure and more trans-parency is not a panacea we need to get the balance right and provide market participants with data that they both want and need.

Lawton stressed the FCA backed Esmas proposals to ban the use of dealing commissions to pay for bespoke research, although he acknowledged this was a hot-button topic for some.

He also highlighted new plans to govern high frequency trading.

We have to develop a balanced regime that doesnt throw our mar-kets back into the technological dark-ages, but ensures they are fair and safe for all users in the future, he added. [email protected]

Irish regulator warns over filing failings REGULATORY FILINGS AND the processes around them are inadequate at a number of firms, announced the Central Bank of Ireland after conduct-ing a thematic review of investment firms and fund service providers.

The bank noted in a letter to indus-try earlier this month that relevant staff at some firms could not demon-strate sufficient knowledge of regula-tory obligations or the methodologies used, while several companies lacked oversight in the production process.

Firms should review existing pro-cedures to ensure that due care and attention is given to the production, oversight and reporting of all regu-latory returns, said Patricia Dunne, deputy head of investment funds and fund supervision at the [email protected]

IREL AND

10 OCT 14DEALING COMMISSIONS UKManagers must respond to consultation paper

15 OCT 14MAD IIConsultation closes on draft regulation and implementing technical standards

REG

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If you would like to comment on any compliance-related news story or development, contact Maiya Keidan, HFMCompliance editor, at [email protected]

9 OCT 14UK FATCAHMRC to hold town hall meeting on consultation paper

1 OCT 14NFAAssessment fees for futures and options contracts to be halved each side

30 SEP 14REGULATION UKWritten evidence must be submitted to House of Lords on nancial regulatory framework inquiry

Non-EEA AIFMs marketing is lower than expectedFOI request reveals 491 notification forms filed by 26 Aug

AIFMD

COMPLIANCE

Reinsurance A is unlikely, warns Fitch

RATINGS AGENCY FITCH HAS warned new hedge funds entering the reinsurance space they are unlikely to receive an A insurer financial strength rating.

A big fall in asset values could deplete a hedge fund reinsurers capital, putting strain on the com-pany if it coincided with unusually high claims payouts, said Fitch.

It added hedge fund reinsurers may be able to receive an A rating in the long term.

THE WEEK

A senior SEC ofcial, Andrew Bowden (pic-tured), has warned that some hedge funds do not give clear accounts of their performance or how they calculate it when communicating with investors. Weve seen people passing off past specic recom-mendations that they never made, the US watchdogs Compliance

and Examinations Director was quoted as saying by Bloom-berg. The agency is examining data from hundreds of hedge funds forced to disclose data by the Dodd-Frank Act.

R AT INGS

PHOTO: SEC/FLICKR

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OUROBOROS ASSET Manage-ment, a Denver-based firm formed earlier this year, will launch its maiden hedge fund in either January or February, HFMWeek has learned.

The offering, named the Ouroboros Fund, will focus on specific market-neutral approach-es that involve the use of propri-etary algorithmic trading models, reverse momentum-based deriva-tives trading strategies, long/short equity strategies, as well as identifying arbitrage opportuni-ties across several markets.

Ouroboros is targeting just under $100m for the fund.

With the inception of Ouroboros Fund, we envision a unique platform that will allow us to generate significant risk-adjust-ed returns, while in turn, gener-ating the capital, in-house, to explore and develop more long-term projects through our private equity operations, said managing partner David Lazarowitz.

The firms other managing partners are Joshua Lockwood and J Saint Veltri.

Ouroboros AM prepares flagship vehicleDenver-based firm targets up to $100m for offering

L AUNCH

Franklin Templeton soft-launches Ucits fundFRANKLIN TEMPLETON HAS soft-launched its first Ucits-registered alternative strategy fund with K2 Advisors, a FoHF manager it pur-chased in 2012.

The Franklin K2 Alternative Strategies Fund will sit within the $922.2bn mutual fund giants Luxembourg-domiciled Franklin Templeton Investment Funds (FTIF) SICAV range.

In a statement, Franklin Templeton said the fund was soft launched on 15 September as a multi-manager, multi-strategy liquid alternative portfolio.

Its objective is to seek capital appreciation with lower volatility than broad equity markets by invest-ing across multiple non-traditional or alternative strategies including long-short equity, relative value, event driven and global macro.

The fund will be accessible to investors from mid-October, with a date to be confirmed nearer the time.

Franklin Templeton purchased $10bn FoHF K2 Advisors in November 2012 in one of several deals pairing a FoHF manager with a larger non-FoHF firm. A similar acquisition saw Liongate Capital, a London-based FoHF, bought last year by US giant Principal Global [email protected]

L AUNCH

If you would like to comment on any start-up-related news story or development, contact Elana Margulies, HFMWeek chief reporter, at [email protected]

LAUNCH ACTIVITY CONTINUES ON P13

Lockwood previously founded Lockwood Equity Group, a pri-vate equity and investment advi-sory firm. He has held positions at Bank of America Merrill Lynch, Charles Schwab Investment

Advisory and Salomon Smith Barney.

Veltris background includes working with senior manage-ment to develop and market both private and public equity instru-ments where he helped raise hundreds of millions of dollars for his clients through the launch of IPOs, private placements, and direct participation programs.

Lazarowitz most recently worked for Neuberger [email protected]

GONDOR CAPITAL MANAGEMENT AND Lampe, Conway & Co have both opened funds to outside inves-tors in separate moves reported by HFMWeekOnline last week.

New York-based Gondor Capital Management has launched onshore and offshore versions of its maiden strategy externally.

Gondor Partners, LP and Gondor Partners, Ltd, started trading in May and July last year and employ an equity long/short strategy with an options overlay and trade US listed equities.

It is targeting primarily high-net-worth individuals, family offices and state pensions that invest in both emerging and minority-owned fund managers to reach $250m in assets.

The fund is a perfect comple-ment to investors portfolios as

our performance is best during a sideways market, said Vincent Au, founder. Prior to setting up Gondor Capital in 2012, he founded Avalon Partners, an investment firm he ran from 1996 until 2011.

Lampe, Conway & Co, a New York-based distressed credit hedge fund manager, had opened its third offering to outside investors after launching in February.

According to a source, the offering, the LC Capital Targeted Opportunities Fund, is a special situ-ations and distressed strategy that will target primarily endowments, foundations and family offices to reach a capacity of less than $1bn.

The LC Targeted Opportunities Fund is managed by Steve Lampe and Richard Conway, who co-found-ed the firm in 1999.

EXTERNAL OPENS

SCOPERTA CAPITAL

STRATEGY Long/short TMT LAUNCH DATE Jan 2015

MARATHON ASSET MANAGEMENT

NAME Marathon Structured Product Strategies Fund STRATEGY Debt LAUNCH DATE Aug 2014

BRIDGEWATER ASSOCIATES

NAME Optimal Portfolio Strategy STRATEGY Global macro LAUNCH DATE Sep 2014

PINZ CAPITAL MANAGEMENT

NAME Pinz Capital International STRATEGY Event-driven LAUNCH DATE Q3, 2014

2 5 S E P 1 O C T 2 0 14 H F M W E E K . CO M 11

OMNI PARTNERS, A London-based firm managing $830m, is launching its long/short equity prod-uct to outside investors after incubat-ing the strategy since January this year.

The 10-year-old firm announced the launch of the Omni European ELS fund last week.

The strategy, co-managed by Howard Spooner and Hugh Selby-Smith, will focus on European oppor-tunities.

Spooner joined last year from Barclays, where he was head of equi-ty trading, while Selby-Smith was recruited from TT International.

The strategy will be the fourth Omni has opened to external inves-tors, complementing its event-driven, macro and secured lending funds.

Omni provides experienced pro-fessionals like Howard and Hugh with the institutional infrastructure and support that enables them to focus on generating attractive risk adjusted returns, said Peter Coates, who joined as CEO this year from Lighthouse Partners, where he was head of Europe.

I was provided a blank sheet of paper to design my ideal product, from both a process and risk perspec-

tive, added Spooner in a statement.Read HFMWeek later this month

for an exclusive interview with Peter Coates about Omnis plans for the [email protected]@hfmweek.com

Regulatory costs and burdens are a tough hurdle to overcome for new UK launches but panellists at last weeks HFMWeek Breakfast Brieng expect a pick-up in activity in the near future. Goldman Sachs head of European cap intro Nick Guano, Maples Financial Services director European business development Stephen Lewis, OESA founder Karen Wormald and LTW Capital founder Nabil Kobeissi debated the big themes affecting new launches at the Four Seasons Hotel in London (pictured).

THE WEEK

Omni Partners launches long/short hedge fundLondon firm starts fourth strategy as internal offering opens up

Eagle Bay Capital lines up new hedge fundEAGLE BAY CAPITAL, a New York-based managed accounts specialist which closed its last hedge fund last year due to high expenses, will launch a successor fund in November.

HFMWeekOnline revealed last week the offering will be called Ibis Global Partners and focus on long/short global macro opportunities, in common with the last fund.

That offering, Ibis Fund I, oper-ated for six months last year but shut down due to a high expense ratio.

The fund will roll out with $10m. Eagle Bay founder JC Parets, who launched the firm in 2012, is senior edi-tor of financial website AllStarCharts.com and was previously vice-president of investments at Westrock Advisors for six years until 2010.

Service providers include Kleinberg Kaplan Wolff Cohen, Apex Fund Services, TD Ameritrade and Mike [email protected]

City Financial is planning to launch a second hedge fund in Asia and is cur-rently on a hiring drive for its Hong Kong-based ofce, Reuters reported last week . New York-based start-up Pagoda Asset Man-agement, founded by ex-Highbridge Capital manager Adam Bernstein, has hired a seven-person team and looks set to start trading on 1 October. The scions of a number of wealthy families, including the sons of prominent Wall Street gures Howard Marks and Ken Moelis, have either recently launched hedge funds or plan to do so soon, the WSJ reported last week . Former Catlin Group and Goldman Sachs manager Dhruv Narain is reportedly raising money for a new hedge fund management rm and plans to launch around 1 January. Chicago-based Peak6 Investments is selling its ownership stake in its $2.3bn hedge fund unit , which is spinning out as a new re-named rm named Achievement Asset Management.

LAUNCHES IN BRIEF S P O N S O R E D BY

L A U N C H E S & CLOSURES I N B R I E F

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CONTINUES ON P13

CT INVEST

STRATEGY European equities LAUNCH DATE Q4 2014

CITY FINANCIAL INVESTMENT CO.

STRATEGY Long/short Chinese stocks and pan-Asian corporate bonds LAUNCH DATE TBD

C-VIEW

NAME C-View Stelrox Systematic Currency Strategy STRATEGY Currency LAUNCH DATE Sep 2014

WHITEBOX ADVISORS

NAME Whitebox Special Opportunities Fund E STRATEGY Debt LAUNCH DATE Oct 2014

EAGLE BAY CAPITAL

NAME Ibis Global Partners STRATEGY Long/short global macro LAUNCH DATE Nov 2014

STRATEGY SPOTLIGHT

OMNI EUROPEAN ELSS PORTFOLIO has three stages base, trading and opportunistic. Stocks initially selected for the base portfolio, which aims to be market and sector neutral, are whittled down on a discretionary basis. This results in between 40 and 50 stocks covering between nine and 11 sectors, which are then sized up or down in the trading book. The opportunistic portfolio is precluded from owning more than three single-stock, sector-specific or thematic views at any given time.SOURCE: Omni

SEARCH ACTIVITY

1 2 H F M W E E K . CO M 2 5 S E P 1 O C T 2 0 14

A WEEKLY COMPENDIUM OF RECENT HEDGE FUND SEARCHES AND INVESTMENT MANDATES

S E A R C H A C T I V I T Y

AURORA INVESTMENT MANAGEMENT TOTAL AUM $9.1bnACTIVITY Mulling increased exposure to portfolio hedge strategies. Also researching bank merger space

JUL 2014

SAN JOSE FEDERATED RETIREMENT SYSTEM TOTAL AUM $2.5bnCONSULTANT AlbourneACTIVITY Issuing mandate to hedge fund manager worth 5% of overall investment portfolio

KAZAKHSTAN NATIONAL INVESTMENT CORPORATION TOTAL AUM $110bn (approx)ACTIVITY Issued RFP for hedge fund consultant to take on $300m mandate

MORGAN STANLEY WEALTH MANAGEMENT TOTAL AUM $1.9trn

CITY OF MOBILE POLICE & FIRE RETIREMENT PLAN TOTAL AUM Not disclosedCONSULTANT Gray & CompanyACTIVITY Considering up to four man-agers for possible investment

EL PASO COUNTY RETIREMENT PLAN TOTAL AUM $319mCONSULTANT Watershed Investment ConsultantsACTIVITY Heard recommendations on potential FoHF managers at August meeting

ACTIVITY Seeking long/short, event-driven and relative value managers

ILLINOIS STATE UNIVERSITIES RETIREMENT SYSTEM TOTAL AUM $16.4bnCONSULTANT NEPCACTIVITY Planning to issue an RFP in its first search for hedge funds

PENNSYLVANIA TURNPIKE COMMISSION TOTAL AUM $6.8bnCONSULTANT Investment Perfor-mance Services ACTIVITY Searching for a FoHF manager for a mandate of around $13m

DEUTSCHE ASSET & WEALTH MANAGEMENT (DEAWM) TOTAL AUM $137.5bn ACTIVITY Could add emerging market managers to its panel

Continued from page 8, compiled by HFMWeek

AUG 2014

TEXAS ERS TOTAL AUM $21bn CONSULTANT AlbourneACTIVITY Seeking two directional growth hedge fund managers to invest up to $250m each

CARNEGIE MELLON UNIVERSITY TOTAL AUM $1.07bn ACTIVITY Looking to hire two or three HFs running relative value and market neutral strategies in the next six months

To comment, contact Alex Cardno at [email protected]

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LAUNCH ACTIVITY

A WEEKLY COMPENDIUM OF HEDGE FUND L AUNCH ACTIVIT Y

L A U N C H A C T I V I T Y

EATON VANCE NAME Eaton Vance Richard Bernstein Market Opportunities FundSTRATEGY Macro LAUNCH DATE Q3, 2014

GREY INVESTMENT MANAGEMENT NAME Grey Value Opportunity Fund STRATEGY Value-oriented equity LAUNCH DATE Oct 2014

ZAFIRO CAPITAL NAME Zafiro Capital Commodities Trading Fund STRATEGY Fundamental discretionary commodity LAUNCH DATE Q4, 2014

SILVER RIDGE ASSET MANAGEMENT STRATEGY Global macro LAUNCH DATE Q1, 2015

HARTFORD FUNDS NAME Long/Short Global Equity FundSTRATEGY Liquid alternative long/short fund LAUNCH DATE Q3, 2014

HORSEMAN CAPITAL MANAGEMENT NAME Horseman European Select UCITS Fund STRATEGY Ucits-compliant European long/short equity LAUNCH DATE Sep 2014

CLOVERDALE CAPITAL STRATEGY Long/short equity LAUNCH DATE Oct 2014

SOROBAN CAPITAL PARTNERS NAME Soroban Opportunities Fund STRATEGY Concentrated, best ideas long/short equity LAUNCH DATE Aug 2014

SANDITON ASSET MANAGEMENT NAME TM Sanditon European Select STRATEGY Europe-focused long/short equity Ucits

ALGEBRIS INVESTMENTS STRATEGY Buy non-performing loans in Italy LAUNCH DATE TBD

THEMIS MANAGEMENT NAME Themis Legal Capital STRATEGY Specialty finance LAUNCH DATE Q4, 2014

LESTE STRATEGY Risk arbitrage, credit, distressed LAUNCH DATE TBD

OURAY MANAGEMENT STRATEGY European equities LAUNCH DATE Nov 2014

SHADOW TREE CAPITAL NAME Shadow Tree Income Fund BSTRATEGY Direct lending LAUNCH DATE Oct 2014

CAHERA CAPITAL STRATEGY Equities LAUNCH DATE Q4, 2014

BROOKFIELD ASSET MANAGEMENT NAME Brookfield Event-Driven Op-portunities Fund STRATEGY Event-driven LAUNCH DATE Sep 2014

ADVANTAGE CAPITAL MANAGEMENT STRATEGY Special situations fund LAUNCH DATE Oct 2014

Continued from pages 10&11, compiled by HFMWeek

REPORTED SEPTEMBER 2014

361 CAPITAL NAME 361 Global Long/Short Equity Fund STRATEGY Long/short equity mutual LAUNCH DATE Sep 2014

OUROBOROS ASSET MANAGEMENT NAME Ouroboros Funds STRATEGY Market neutral LAUNCH DATE Q1, 2015

PAGODA ASSET MANAGEMENT NAME TMT and consumer-focused STRATEGY Long/short equity LAUNCH DATE Oct 2014

SAGAT CAPITALNAME Systematic Diversified Programme STRATEGY CTA LAUNCH DATE TBD

VIRTUS INVESTMENT PARTNERS NAME Virtus Strategic Income Fund STRATEGY Alternative income LAUNCH DATE Sep 2014

OLD HILL PARTNERS STRATEGY Specialty finance LAUNCH DATE Q3, 2014

BEACH HORIZONSTRATEGY Ucits-compliant directional managed futures LAUNCH DATE Oct 2014

SEVEN SAGES CAPITAL STRATEGY Global macro LAUNCH DATE TBD

To comment, contact Elana Margulies at [email protected]

COMMENT&ANALYSIS

THE LONGVIEW

E arlier this month, the CFTC issued certain important exemptive relief and further guidance in response to numer-ous industry participant requests to consider harmonising certain CFTC regula-tions with SEC rules implementing the Jobs Act.

These SEC actions (i.e. the issuance of new Rule 506(c) under the Securities Act) elimi-nated a prohibition on general solicitation and advertising for certain offerings made under Rule 506 of Regulation D of the US Securities Act of 1933 and for certain offerings made pursuant to Rule 144A under the Securities Act.

The SECs actions with respect to the Jobs Act had led some commentators to contem-plate managers of private equity, hedge and other private funds availing themselves of widespread advertising, including television, radio and public transportation advertising, to attract potential investors.

Despite such predictions, few private fund managers have availed themselves of these options. One such reason was certain restric-tions set forth in CFTC regulations.

Because many private fund managers, or affiliates thereof, engage in commodity inter-ests transactions (which include most swaps

transactions) with respect to the private funds that they manage, such persons fall under the regulatory purview of the CFTC, and, there-fore, generally must register as commodity pool operators (CPOs) and/or commodity trading advisers (CTAs), or avail themselves of applicable exemptions from such require-ments.

Private funds managers (or their affili-ates) that rely on CFTC Regulation 4.7(b) or CFTC Regulation 4.13(a)(3) and that con-templated engaging in a Rule 506(c) offering had previously faced a seemingly insurmount-able dilemma imposed by these CFTC regula-tions.

The CFTC guidance provides limited exemptive relief from regulatory contradic-tions by harmonising regulations with Rule 506(c) under the Securities Act in certain cir-cumstances. In order for a CPO to claim this exemptive relief, the guidance provides that certain conditions must be met by the CPO, including manual submission to the CFTC of a claim for exemptive relief.

While CTAs are not sponsors of private funds and would, therefore, not engage in a Rule 506(c) offering, the guidance may indi-rectly benefit certain CTAs. For instance, CTAs relying on the registration exemp-

tion provided by CFTC Regulation 4.14(a)(8) (which, among other things, provides an exemption from registration for certain CTAs that solely advise CPOs relying on CFTC Regulation 4.13(a)(3)) would still be eligible for such exemption if any such advised CPO engages in a Rule 506(c) offering.

Although the guidance was welcomed, there are still questions as to whether such actions will marshal in a new era of private fund public solicitation and advertising due to remaining hurdles such as:E*--2=287*5 *-6272

WE HAVE TO DEVELOP A BALANCED REGIME THAT DOESNT THROW OUR MARKETS BACK INTO THE DARK-AGESDavid Lawton, director of markets at the FCA, on the challenge ahead with Mid II and HFT

CURRENT LEVERAGE STRATEGIES ARE TOO RISKY AND ARE NOT YIELDING THE RESULTS THAT WERE ANTICIPATEDRetiree Phyllis Elkind speaks out as San Diegos CERA pension decides outsourced CIO Lee Partridges future

WE BELIEVE THIS ACQUISITION IS A PERFECT MATCHThrogmorton CEO Andrew Rubio on his companys sale to Capita Asset Services

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Data and online editorRob Langston +44 (0) 20 7832 6626r.langston@hfmweek .com

Chief reporterElana Margulies +1 (212) 268 4944e.margulies@hfmweek .com

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Former PB forecasts smokin futureHopes biggest business experiment of the 21st century will drive exchange

Leading the way in the wrong directionBetter late than never for partner who got lost on way to HFM leaders summit

W e hear about staff from prime brokers spinning off and launching their own hedge funds. But one former PB is hoping to make a name for himself through a rec-reational activity more than likely to leave your head spinning.

Americas emerging cannabis industry is shaping up to be the countrys biggest business experi-ment of the 21st century, begins a press release penned by Amercanex, which describes itself as the first fully electronic marketplace ex-change for the cannabis industry.

The venture is the brainchild of

Steve Janjic, whose CV includes stints at Morgan Stanley, Gain Capital and ACM.

With cannabis now decriminal-ised in a number of US states, he hopes hes spotted a great oppor-

tunity to roll out a Wall Street-like digital commodities exchange system. It will allow market partici-pants to monitor and track orders, activities and transactions and help growers and retailers to calculate and deduct fees and taxes.

A real-time interface will offer users best sell/buy prices, which it hopes will stimulate competition and lower costs in this burgeon-ing new legalised industry. Market forces driving down costs so ston-ers then have more money to spend on their munchies? Were sure the likes of Ayn Rand and Ronald Reagan would be truly proud. Q

T he great and the good of the European hedge fund sector gathered at The Grove hotel in Hertfordshire, England, last week for the HFMWeek opera-tional leaders summit, although some guests took slightly longer to get there than others.

The hotel (pictured), so in demand that even the profligate UK financial regulator decided to treat its board members to a 15,000 stay last year, is located

a convenient 20 miles north of London.

However, a partner of a nota-ble UK hedge fund unfortunately didnt get the memo and ended up at the location of last years summit,

some 30 miles south of London at Pennyhill Park in Surrey.

To spare their blushes, and avoid any physical retribution, The Inside Hedge will be keeping the name of the embarrassed manager under wraps. Suffice to say they managed to make it up to Hertfordshire in the end to get involved in the heat-ed industry debates and insightful discussions, alongside a hotly con-tested golf competition and a bit of crossbow and archery action. Q

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20 FOR 2015

As confidence in the hedge fund start-up market builds, HFMWeek examines the pipeline and lists the 20 freshest launches generating most interest among investorsBY WILL WAINEWRIGHT

FEATURE 20 FOR 2015

hedge funds has been helped in particular by the emergence of new seeding ventures.

But while this years list features seeding activity from names ranging from Blackstone to Leucadia National Corp, many prime brokers believe seed deals have become less important in the last couple of years. Founders share classes are becoming much more prevalent and are largely the preferred option, says Malik.

As with the wider industry, long/short equi-ty dominates the strategy composition of the list. Equity long/short is certainly du jour, adds Malik. It is the strategy of choice for investors and also where you are seeing the largest, most high-profile and best-pedigreed start-up managers.

The majority of the 20 for 2015 managers have come from other hedge funds as opposed to banks. Investors have more confidence in the been there done that credentials of man-agers who have been PMs at other hedge funds, but a few continue to make it from other back-grounds, says Davey. A senior prime broker in London says the failure of Goldman Sachs spinout Edoma Partners, which was Europes biggest post-2008 hedge fund launch, has not helped the reputation of bank spinouts.

Managers need the three Ps: pedigree, performance and product, says Malik. That gets you in the door. But these managers from brand-name hedge funds fall into two categories those who were investor facing and those who werent. The cream of the crop money managers built LP relationships, and investors were able to build trust in them and their processes.

Investors are much likelier to come in day one to those managers. It separates the $100m launch from the $1bn launch.

That assets total, as ever, remains the Holy Grail for new hedge fund launches. The next 12 months will determine how many of this years crop reach it.T

he post-crisis era has proved chal-lenging for new hedge funds, but industry participants have become notably bullish about the start-up market. We are in the most robust hedge fund start-up market since the

crisis the days of the $1bn launch are well and truly back, claims Omeed Malik, who heads Bank of America Merrill Lynchs emerging manager programme and US prime brokerage distribution.

It feels exactly the same here, says Carl Davey, who runs hedge fund sales for Citi Investor Services in Asia. We are seeing a good number of new firms led by pedigreed managers, who are building institutional-grade infrastructures and attracting significant day-one capital.

The positivity seems to be borne out by the numbers, with several constituents of last years list of new hedge funds raising more than $1bn, and at least one Herb Wagners Finepoint Capital surpassing $2bn. Sources say a per-fect storm of factors have combined to provoke the uptick in interest, all of which have impacted HFMWeeks latest round-up.

The downsizing of SAC Capital Advisors, since re-named Point72 Asset Management, and clo-sure of Ziff Brothers hedge fund investing unit have both had big impacts. Four constituents of this years list are being launched by managers who previously held senior positions at Ziff, while three worked at Point72. A further three new firms recently launched by SAC alumni in the UK Ayora Capital Management, Pagliaro Capital Management and HSE Capital Management have also generated headlines, but did not make the list.

Observers say another factor swelling the launch numbers for new firms is the fact that many brand-name hedge funds are closed to new mon-ey, improving the appeal of new hedge funds start-ed by alumni of those firms. A number of higher-profile managers here in Asia are soft-closed to new money, which has provided opportunities for new launches to enter the market, adds Davey.

His colleague Carol Teng, who works for Citis cap intro team, adds that the rise of new seeding efforts such as HS Group has boosted the mar-ket. The fundraising environment for new Asian

ABBERTON CAPITAL MANAGEMENTFOUNDER: Fredrik JunttiFOUNDED: April 2014, London

One third of the founding trio behind Montrica Investment Management, a pre-crisis success story later swallowed up by TPG Axon, Juntti is returning with Abberton Capital Management, a highly tipped London-based start-up. His earlier co-founders are coincidentally also launch-ing ventures this year Svein Hogset with Incentive AS in Norway and Andrew Metcalfe with Lakefour Investment Management in Switzerland but sources say Abberton looks set to raise the most backing. Meditor Capital Management COO Craig Simkins has been brought on to run operations for Abberton, an activist investment firm, which was planning to launch next quarter with assets of around $200m.

2 5 S E P 1 O C T 2 0 14 H F M W E E K . CO M 17

ARAVT GLOBALFOUNDER: Yen LiowFOUNDED: October 2013, New York

After launching early this year, Liow is now running more than $1bn with Aravt, which was the first large-scale launch to emerge from the closure of Ziff Brothers hedge fund investing unit. Liow spent 12 years at the family office, where he man-aged a range of long/short equity investments ranging from global media and telecoms to agricultural commodities and energy. His COO is Thomas Hoban, who has worked for a range of firms including Vinik Asset Management and Signpost Capital.

ARKKAN CAPITAL MANAGEMENTFOUNDER: Jason BrownFOUNDED: December 2013 (SFC registra-tion), Hong Kong

The long-awaited start-up from Brown, who led global special situ-ations investing for Goldman Sachs, was reported earlier this month to have won backing worth up to $200m from Blackstone. A prime broker says the offering, which start-ed trading in August, is the biggest new bank spinout in Asia. It follows Senrigan Capital Group as only the second new Asian hedge fund to win Blackstones backing since the financial crisis.

BANBURY PARTNERSFOUNDERS: Baker Burleson, Stormy ScottFOUNDED: April 2014, Charlotte, N Carolina

Burleson and Scott two managers previously with Tiger cub firms have joined forces to launch what could be termed the ultimate Tiger grand-cub. Burlseson is CIO of the new long/short equity venture after eight years with Fox Point Capital Management, while Scott is presi-dent and COO after seven years with Hound Partners. Their new venture was reportedly targeting a $300m fundraise for its launch next quarter.

BOSVALEN ASSET MANAGEMENTFOUNDER: Ken XuFOUNDED: August 2014 (SFC registration), Hong Kong

Xu left the Asia office of Steve Cohens Point72 Asset Management earlier this year and is preparing a hedge fund generating considerable buzz among industry participants in the region. The Och-Ziff and Goldman Sachs alumnus managed money for more than three years

at SAC/Point72 and is preparing a long/short equity firm. That is the Point72 spinout generating the most interest in Asia, says one manager. Another former SAC manager gen-erating interest with a new Asian hedge fund is Andrew Bazarian.

DARSANA CAPITAL PARTNERSFOUNDER: Anand DesaiFOUNDED: January 2014, New York

Former Eton Park manager Desai raised more than $1bn for the launch of Darsana in June, making it one of the years most success-ful launches. A service provider describes the launch as a thing of beauty in terms of its institutional build-out and success with inves-tors, adding that Desai could have raised more had he wished. Desai spent nine years at Eton Park having worked for Eric Mindichs firm since its 2004 launch. Former colleagues Dan Irom and George Saalouke were among his recruits at Darsana, which deploys a long/short equity strategy.

FOLGER HILL ASSET MANAGEMENTFOUNDER: Sol KuminFOUNDED: August 2014, New York and Boston

Kumin was at SAC Capital for a decade until leaving his role as COO earlier this year to launch Folger Hill. His planned firm has secured one of the years biggest seeding deals from Leucadia National Corp, which has agreed to allocate $400m if Kumin can match that sum with contributions from elsewhere. The company will reportedly get almost half of Folger Hill in return for the commitment. Todd Rapp left his role as chief risk officer at Highfields Capital Management to co-found the firm. It hopes to raise a total of more than $800m to be allocated among different trading teams.

IMMERSION CAPITALFOUNDER: Michael SidhomFOUNDED: April 2014, London

Sidhom is lining up Immersion with guaranteed backing from his former employer, Ziff Brothers, making it one of the London markets most-tracked start-ups. He spent almost a decade managing money for the family offices Europe office and was one of its most senior managers. Jim Kandunias, the former Esemplia COO, has been hired to lead a new

operations team but Sidhom has brought his investment team over to Immersion, an equities-focused venture. Ziff Brothers became a force in the hedge fund space despite not accepting outside money meaning the new wave of start-ups from ex-Ziff talent opens them up to investors widely for the first time. A senior prime broker says Sidhoms ex-colleague David Fear, who was Ziffs most senior manager in Europe, is another one to watch. Fear registered a name Thunderbird Partners in May and given his calibre can expect to raise at least as much as Sidhom from Ziff and other investors.

KONTIKI CAPITAL MANAGEMENTFOUNDER: Gregard HejeFOUNDED: April 2014 (SFC registration), Hong Kong

The closure of the Ziff Brothers hedge fund unit makes its pres-ence felt in Asia too, with the family offices former head of investing in the region behind one of Asias most-tipped hedge fund start-ups. Heje spent almost a decade at Ziff and has been backed by them for his pan-Asia long/short equity fund. Kontiki is generating a lot of interest, no question, says a prime broker in the region.

MELVIN CAPITALFOUNDER: Gabriel PlotkinFOUNDED: April 2014, New York

Plotkin is leading one of a clutch of new hedge funds to emerge from the SAC/Point72 stable. What makes Plotkins venture stand out is the $200m backing he has reportedly won from his former boss Steve Cohen, who at times entrusted him to manage more than $1bn of his firms capital. A prime broker says Cohens backing is very unique and considerably enhances Plotkins chance of success. The average SAC spinout has a lot of difficulty because of the reputation, the person adds, referring to the dam-age done to SAC by repeated insider trading scandals. Plotkin named his firm after his grandfather, it emerged this summer.

PAGODA ASSET MANAGEMENTFOUNDER: Adam BernsteinFOUNDED: May 2014, New York

Bernstein was a portfolio manager at Highbridge Capital Management

for almost nine years before leaving in March to build Pagoda, which will deploy a long/short equity strategy for its launch next quarter. He has brought Mark Hoffman, an 11-year Highbridge veteran who headed up global equity trading, with him as COO. Bernstein led Highbridges investing effort in the technology, media, telecommunication (TMT) and consumer sectors. A prime bro-ker said that pedigree gives Pagoda a good chance of success.

PERDURANCE ASSET MANAGEMENTFOUNDER: Ivan BrieryFOUNDED: March 2014, Jersey

Briery was a star of the industrys pre-crisis era, making millions with Voltaire Asset Management, the firm he co-founded in 1997 with Laurent Saglio, who went on to found Zadig Asset Management. Their timing was perfect, as for eight years the pair scored bumper returns before closing well before the financial cri-sis hit allowing Frenchman Briery to retire at the age of 40 to devote myself to my family. However, the one-time Soros manager is mak-ing a comeback with Jersey-based Perdurance with potential launch assets thought to be in the region of $500m.

PLEIAD INVESTMENT ADVISORSFOUNDER: Ken Lee and Michael YoshinoFOUNDED: June 2014 (SFC registration), Hong Kong

Former Asia specialists for Soros Fund Management, Lee and Yoshino have joined forces to start a new firm trading Asian equities. Pleiad Investment Advisors won backing from the HS Group, one of several seeding firms improving the fundraising picture for Asian hedge funds. The founders also worked together at Tiger Asia Management, making this another new firm with links to Julian Robertsons hugely influential hedge fund firm. HS Group is part-owned by TPG Capital and was set up by ex-Blackstone and Goldman Sachs professionals.

PRIMESTONE CAPITALFOUNDER: Franck Falezan, Benot Colas and Jean-Pierre MilletFOUNDED: March 2014, London

Few impending launches not just in Europe but globally can beat Primestone for pedigree. The trio behind one of Londons most

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FEATURE 20 FOR 2015

closely-watched launches have all had long and senior careers with The Boston Consulting Group and more recently Carlyle Group. Millet was founder of the private equity giants Europe office. It describes itself as a constructive active manager and will target companies in the European mid-cap space. It expects to launch next quarter with between $400m and $600m including hefty contribu-tions from the founders. UBS is prime broker for the fund, which will not short securities. The real deal, says one prime broker who is not working with the firm. You just know

they will do well.

SAFERIDGE CAPITAL PARTNERSFOUNDER: Paul SafersteinFOUNDED: May 2014, New York

Saferstein is setting up Asia-focused Saferidge after eight years with Asian Century Quest Capital, which is clos-ing down after redemptions shrank the business from a $2bn peak in 2012. His launch, scheduled to start trading in Q4, will make long/short equity invest-ments across Asia but have a particular focus on Japan. The closure earlier this year of Joho Capital, a $5bn New York hedge fund focused on Asia, left a gap in the space

and will help Saferstein generate interest, according to one industry observer.

SENTINEL DOME PARTNERSFOUNDER: Munir AlamFOUNDED: February 2014, San Francisco

Tipped by one prime broker as potentially the biggest West Coast launch of 2014, Sentinel Dome is being set up by an eight-year veteran of Farallon spinout Watershed Asset Management. Alam was co-portfolio manager and managing member there before leaving in January this year to launch his new firm, which will make event-driven investments across the capi-tal structure.

SEVEN HARBOUR GLOBALFOUNDER: Sean GroganFOUNDED: October 2013, New York

The new firm being set up by Grogan, who spent almost six years at Conatus Capital Management, has generated multiple head-lines this year with hires that indicate his start-up firm Seven Harbour has grand ambitions. Rob Sachs was recruited to lead busi-ness development from Bank of America Merrill Lynch, where he headed global cap intro, while CFO Jay Maymudes was prised away from Wexford Capital after almost 20 years. Like several on this list , Seven Harbour deploys a long/short equity strategy.

SOPHOS CAPITAL MANAGEMENTFOUNDER: Jim CarruthersFOUNDED: November 2013, New York

Carruthers is a former part-ner of Third Point founder Dan Loeb, which goes some way to explaining why his plan to launch a short-bias hedge fund has been generating buzz among investors. I can tell you that I think hes got the real stuff, says one prime broker, adding that the short-bias strategy makes it stand out to investors. He spent eight years managing money for Third Point, which was recently reported to have quickly raised a further $2.5bn. If Carruthers can tap into that appetite, he could lead one of this years larg-est launches with Sophos, which was planning to launch in the second half of 2014.

SQUAREPOINTFOUNDERS: Gregoire Schneider, Olivier Durantel, Maxime Fortin and Antoine Fillet FOUNDED: May 2014, London

The spinout of the nQuants systematic trading unit from Barclays has generated much attention in industry circles this year. Key indi-viduals involved in the proj-ect incorporated the name Squarepoint in London in May, although the venture is reportedly planning to have offices globally with around 60 employees. It is understood Barclays supports the breakaway of the unit into a new firm although it will reportedly not seed or take a stake in the venture. Chris Newman has been brought on board after almost 20 years at Millennium Management, where he was head of operations.

TWO CREEKS CAPITAL MANAGEMENTFOUNDER: Ryan PedlowFOUNDED: 2014, New York

Pedlow was reported by the Wall Street Journal to have raised $1.5bn for its launch this summer, mak-ing it one of the biggest hedge fund launches since 2008 and the largest offer-ing to emerge from the Ziff Brothers stable. Pedlow was a key stocks manager at the New York-based family office and his new firm is also equities-focused. The fund charges fees of 1.5/20, according to its SEC bro-chure. Former Tiger, Viking and Saba executive Carl Casler was appointed CFO while Richard Wandner, who spent 12 years at Viking, is head of operations. Q

WHERE ARE THEY NOW? THE CLASS OF 2014

Anderson Global Macro: Macro firm founded by Keith Anderson, formerly a BlackRock and Soros heavyweight, now manages $600m. Argentire Capital: Deepak Gulatis Switzerland-based firm now manages $600m.Canosa Capital: Tim Attias and Santiago Alarcos macro fund was the only European firm out of last years batch to raise more than $1bn and now manages $1.045bn.East Lodge Capital: Most recent reported asset figure for ex-CQS manager Ail Lumsdens firm was around $500m.Finepoint Capital: The biggest launch on last years list, ex-Baupost manager Herb Wagner is reported to have attracted launch assets in the region of $2bn.Foxhaven Asset Management: Michael Pausic founded one of last years most-tipped launches after 16 years with Maverick . Latest AuM unknown.Junto Capital Management: Ex-Viking manager Jim Parsons was said to have launched in January with around $500m.Nettleton Capital: Former Eton Park star Rob Dafforn won launch backing of around $150m from Blackstone. Latest AuM unknown.Nordkinn Asset Management: The Scandinavian firm now manages $160m after launching last year.Princeton Alpha Management: Shakil Ahmed won backing from Blackstone worth $250m on launch last year. Latest AuM unknown.Rock Springs Capital: One of the lists smaller constituents, former T. Rowe Price man-ager Kris Jenner reportedly launched with $100m last year. Latest AuM unknown.Roystone Capital Management: Founder Rich Barrera quickly raised around $400m last year. Latest AuM unknown.Salt Rock Capital Partners: Former Caxton Associates manager Mark Painting now man-ages more than $300m in his London-based start-up.Sarissa Capital Management: Alex Denner, previous