50 Leading Women in Hedge Funds

In an industry that celebrates the accomplishments of alpha males, it is often overlooked how many successful women are working in key roles in hedge funds. But despite estimates that women manage only 3% of the $1.5 trillion invested in hedge funds, a growing number of entrepreneurial, innovative and accomplished women now work in a variety of roles with funds, service providers and investors. This survey of 50 Leading Women in Hedge Funds, sponsored by PricewaterhouseCoopers1, shows how women are making an increasing contribution to the industry’s development and success. The rationale for this survey is to document and recognise the valuable contribution of women, but also to use it as an example of the opportunities that are opening for more women to progress in the hedge fund industry.

The following is on :
http://www.thehedgefundjournal.com/magazine/201002/research/50-leading-women-in-hedge-funds.php

The Role of Chance in Trading

I love to read books written by efficient market theorists whenever I need a laugh. The works are usually written by an academic with no practical trading experience; these writers confuse the role of chance on a trade-by-trade basis with the edge an accomplished trader creates over a large sample size. From that error, a whole host of errors follow. Let’s state this upfront: on a trade-by-trade basis, I believe the market is random - given that is driven by human buying and selling. As an example, take my in-out trade yesterday in the S&P minis (see my video) . When the market failed to cover at least 50% of the gap in the first 60 minutes, the probability was we’d see a trend day closing on its highs. But this is a probability based on a large sample size. Yesterday, the market could just have easily sold off some time after breaking up - it did not have to trend up and did not have to close on its highs. I was lucky that it did. Lucky? Given that the market on a trade-by-trade basis is random, whenever a trade works out as my analysis suggests it will, I consider it lucky. And because I don’t want the result of any one trade to be skewed towards luck, I practise risk and trade management.

The full article is on :
http://tradingsuccess.com/blog/barrometrics-views-the-role-of-chance-in-trading-987.html

Wealth boutiques seek to cash in on crisis : Independent managers set to prosper

As the financial crisis cuts a swathe through the ranks of large financial institutions, independent wealth management boutiques are sensing an opportunity. With big brands battered by scandal or investment losses, investors have questioned whether it is sensible to remain with familiar names that no longer possess the sheen of stability. Research by Prince & Associates in the US suggested 80% of wealthy investors would change their advisers as a result of the crisis. Smaller operations offering straightforward investment products with personal service and equitable fees should benefit.

The following on : http://www.wealth-bulletin.com/home/content/2452237475/

Luxembourg continues to dominate onshore hedge fund industry in Europe

With an eye on the competition, Luxembourg has enacted flexible and attractive legislation aimed at tempting more hedge funds to domicile in the tiny European state.

http://www.ey.com/Global/assets.nsf/Luxembourg_E/HedgeFundsReviewMFESept08/$file/Hedge%20Funds%20Review%20Sept%2008.pdf

Prime brokers : BNP Paribas Securities Services

It has been obvious to hedge fund commentators for a long time now that the industry is changing. It is becoming more institutional, both in the way that hedge fund firms operate and in terms of the sources of the capital they manage. This is having a profound effect on day-to-day business practices and, in turn, is also changing the way hedge funds are serviced.

In the driving seat of this revolution are large, institutional investors, attracted to hedge funds by the prospect of absolute returns and a more active approach to money management. At the same time, they are not prepared to compromise on service standards, and expect fund managers, and their service providers, to deliver the same levels of service and accuracy that they would expect to receive from a large mutual fund structure. This is tough if you are relying on a small, boutique hedge fund administrator to deliver your NAVs. In recent years, we have been witness to a number of landmark deals that have seen major investment banks buying up many of the independent administrators that have been active in the hedge fund space in an effort to tap into the perceived growth in the asset class. The rationale has been to match the scale and infrastructural quality of a major international bank with the specialist knowledge and client base of a boutique administrator. There are, however, other approaches.

One such is represented by BNP Paribas, the major French bank which has been gradually building up its presence in the hedge fund world via a number of avenues, including its Securities Services arm. Other acquisitions for the bank in the alternative investments arena have included fund of hedge funds manager Fauchier Partners, and Bank of America’s prime broking operation. The bank is obviously coming into the hedge fund sector from a variety of different directions, and in all cases, employing its already extensive experience in operations, markets and instruments to give itself an edge.

As a group, BNP Paribas already enjoys considerable scale, with a presence in over 85 countries, 163,000 staff and the additional benefit of an AA+ credit rating. It is hard, in the current climate, to underestimate the value of being the highest rated securities services provider in the world. “We actually had an upgrade during the crisis,” says Maria Cantillon, Global Head of Business Development at BNP Paribas Securities Services (BPSS). “In the hedge fund world, where historically credit rating was not a top priority on a hedge fund manager’s radar, from an investment perspective they now need a credible minimum in their prospectus. Having an AA-rated bank, and a bank that can do prime broking, finance and leverage with that credit rating, brings additional gravitas.”

http://www.thehedgefundjournal.com/profiles/index.php?articleid=85375184