bloombergbrief hf newsletter 201458

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INSIDE

OCH-ZIFF FUNDS POST MIXED RETURNS The Master Fund fell in July, while the Asia Master Fund and the Europe Master Fund rose: Returns in Brief, page 2

FUNDRAISING Fort Warren Capital Management starts trading its first fund with $200 million in assets; Tricadia Capital Management raises $300 million for its Tricadia Financials Opportunities Fund, page 3

ON THE MOVE James Whitecross, a former senior analyst at Myriad Asset Management, rejoins Impala As-set Management; TCI hires Sourav Choudhary from Theleme Partners, page 4

FROM THE MINUTES Pennsylvanias Public School Employees Retirement System is scheduled to discuss hedge fund due diligence process at its finance committee meeting today, page 4

PERFORMANCE SNAPSHOT The best performing long-short equity funds by 3-year annualized returns, page 7

CALENDAR pages 9-10

SPOTLIGHT Michelle McCloskey, senior managing director at FRM, the fund-of-funds business within Man Group, on its search for event-driven and com-modities managers, page 11

BY KELLY BITHoward Wang, a former analyst at Bridgewater Associates LP, says most hedge fund

performance mirrors the broader market, failing to justify the high fees collected.Thats why Convoy Investments LLC, the global macro fund he started in November

with former Bridgewater software engineer Robert Wu, isnt charging a performance fee to investors and only a 1.25 percent management fee, he said. The New York-based firm will even manage money pro bono for foundations and underfunded pensions for up to 25 percent of the firms assets.

Many hedge funds simply repackage or lever cheap benchmark indices and sell it as expensive outperformance, Wang, 28, said. While true uncorrelated active management is more valuable than ever, investors need to make sure they are getting what they pay for. Convoy explicitly structured a portion of its strategy to contain market beta exposure, or performance in line with the market, said Wang. It currently manages internal and friends-and-family money and is seeking to raise as much as $200 million.

Wang is betting his offer will hit a nerve with investors who have been paying an aver-age of 1.5 percent of assets and 18 percent of profits, according to Hedge Fund Research Inc., for funds that in aggregate have trailed the S&P 500 for more than five years.

Its refreshingly honest, said Simon Lack, founder of investment firm SL Advisors and the author of The Hedge Fund Mirage: The Illusion of Big Money and Why Its Too Good to Be True. Theres a lot of funds that charge fees they probably dont deserve.

Wang worked for $160 billion Bridgewater from 2008 to 2012 and was an analyst on the investment team for the Westport, Connecticut-based firms $80 billion All Weather strategy. Wu, 32, worked at Bridgewater from 2007 to 2010 on the operations team.

The Convoy Funds LP, which bet on and against diversified holdings of stocks, bonds, commodities and currencies, rose 10 percent this year through June and returned an an-nualized 14 percent since starting in November. The strategy aims to post annual returns of 10 percent. Comparatively, macro managers gained 1 percent this year through the same period, according to data compiled by Bloomberg.

Ex-Bridgewater Analyst Starts No-Fee Fund

NEW MANDATES

10 11

23 27

15 6 7

45

64

106

95 95

49

32

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Ratio

Ne

w M

and

ate

Co

un

t

Global Macro All Hedge Funds Ratio

Source: Bloomberg Mandates

Institutional searches for global macro hedge funds have re-bounded this quarter from their lowest level since Bloomberg began tracking the data. Since July 1, there have been seven new mandates for macro funds, more than there were in the entire second quarter. This corresponds to 22 percent of all hedge fund mandates this quarter, the most since the fourth quarter of 2014 when the ratio was 28 percent.

Nathaniel E. Baker

Institutional mandates for hedge funds are now available on the Bloom-berg terminal via MND. Access is provided to Bloomberg Any-where clients at buyside firms whose primary responsibility is to market in-house alternative investment funds. Contact your sales representa-tive for questions about accessing the function. For more information about Bloomberg Mandates, e-mail [email protected].

BRIEF Hedge FundsNEWS, ANALYSIS AND COMMENTARY 08.05.14www.bloombergbriefs.com

For use by [email protected] only. Redistribution only allowed with firm license. Call +12126179030 for info.

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RETURNS IN BRIEF

Steven A. Cohens Point72 Asset Management LP, the family office he started to oversee his own wealth, has gained about 9 percent this year, according to two people with knowledge of the matter. The gains, close to $1 billion, equal more than half the record $1.8 billion his hedge fund paid to settle U.S. allegations of insider trading. While Cohens firm has shrunk to about 850 people from 1,000 in its transition to a family office, the 58-year-old is showing few signs of losing a competitive edge and has made a few key hires. This year, he profited from investments including drugmaker Intercept Pharmaceuticals Inc., said the people. A spokesman for Stamford, Connecticut-based Point72 declined to comment. The firm manages between $9 billion and $10 billion.

Saijel Kishan

Fortress Investment Group LLCs macro hedge fund lost 3.2 percent this year through last week, and the companys Asia macro fund declined 4.8 percent, the firm said in a statement last week.

Devin Banerjee

Man Group Plcs AHL Diversified rose 8.7 percent in the six months through June, it said in a statement announcing earnings for the first half of the year. AHL Evolution, another of Man Groups quantitative funds, climbed 13 percent and AHL Alpha rose 6 percent. GLG Multi-Strategy fund fell 1.9 percent, it said.

Lindsay Fortado

Och-Ziff Capital Management Group LLCs OZ Master Fund fell 0.1 percent in July, paring year-to-date returns to 2 percent, according to a regulatory filing. The OZ Asia Master Fund climbed 2.4 percent last month to bring year-to-date returns to minus 4.4 percent, the filing said, while the OZ Europe Master Fund gained 0.3 percent, par-ing year-to-date losses to 1.7 percent. The firm, run by Daniel Och, manages $45.7 billion in assets as of Aug. 1, the filing said.

Janet Freund

It was a PR failure. Bill Ackman, on his July 22

Herbalife Ltd. presentation.

QUOTE OF THE WEEK

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Hedge Fund Index ReturnsSTRATEGY BLOOMBERG INDEX CODE 2013 2014 JUNE 2014

Long-Biased Equities BBHFLONG 9.8 7.7 1.7Capital Structure Arbitrage BBHFCRED 14.3 7.0 0.5Distressed Securities BBHFDIST 12.7 7.0 1.7Asset-Backed Securities BBHFASTB 13.0 6.8 1.0CTA/Managed Futures BBHFMGDF -8.4 6.4 1.5Event-Driven/Special Situations BBHFSPEC N/A 5.6 0.5Mortgage-Backed Arbitrage BBHFMARB 5.1 4.7 -0.5Multi-Strategy BBHFMLTI 6.8 4.5 1.1Convertible Arbitrage BBHFCARB 2.6 4.1 0.4Fixed-Income BBHFFIXD N/A 4.0 0.8Merger Arbitrage BBHFMERG 6.4 3.8 1.9Long-Short Equities BBHFLSEQ 10.7 2.7 1.4Global Aggregate Hedge Funds BBHFUNDS 7.4 2.5 1.1Fund of Funds BBFHFNDS 8.0 1.5 1.0Fixed-Income Arbitrage BBHFFARB 5.9 1.2 0.2Global Macro BBHFMCRO -2.2 1.0 0.8Emerging Market Equities BBHFEMEQ -5.3 0.8 2.9Market-Neutral BBHFMNFL 5.7 0.6 0.4Emerging Market Debt BBHFEMDB -5.5 -0.7 0.6Equity Statistical Arbitrage BBHFSTAT 5.17 -2.3 -0.3Short-Biased Equities BBHFSHRT N/A -9.1 0.2

Source: BAIF Information on methodology available on the Bloomberg terminal under IDOC #2072204.

08.05.14 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 2

Bloomberg Brief Hedge Funds

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Tricadia Raises $300 Million for Financials Fund

Tricadia Capital Management LLC, the $3.9 billion New York-based credit-fo-cused investment firm, raised $300 million for its Tricadia Financials Opportunities Fund, according to a person familiar with the matter.

The fund, which invests in financial services companies, including commu-nity and regional banks, as it bets on a strengthening U.S. economy, started this year with $100 million in commitments.

Carissa Felger, a spokeswoman for Tricadia, declined to comment.

The firms co-chief investment officers, Michael Barnes and Arif Inayatullah, manage the fund, which has a three-year investment period. They founded Tricadia in March 2003.

Kelly Bit

Fort Warren Starts Fund with $200 Million

Fort Warren Capital Management LP, the Boston-based firm started by Eugene Lee and Paul Singh, former senior ana-lysts at Regiment Capital Advisors LLC, started trading last week with $200 million in assets, according to a person familiar with the matter.

The assets include an allocation from The Investment Fund for Foundations, which oversees about $11 billion for non-profits, said the person.

Fort Warren separately hired Marc Volpe as chief financial officer. Volpe previously held the same role at Regiment, the credit fund founded by Tim Peterson after he left Harvard Universitys endowment, the person said.

The firm also hired two analysts: Peter Kim, who was most recently vice

president at GLC Advisors & Co. LLC and Doug Wooden, who was a research ana-lyst at DDJ Capital Management LLC.

Lee and Warren left Regiment Capital in 2013 to start Fort Warren Capital with plans to launch its first hedge fund this year. The fund would be focused on credit with equi-ties making up as much as 40 percent of assets, they said at the time.

Lee worked at Regiment from 2008 to 2013. Before that, he was a managing director at GSO Capital Partners LP from 2006 to 2008 and a managing director at Evercore Partners Inc. from 1999 to 2006. Singh worked at Regiment from 2007 to 2013. Prior to that, he was a senior analyst at Hammerman Capital Management LLC from 2002 to 2007.

A spokesman for Fort Warren declined to comment.

Kelly Bit

FUNDRAISING ITEMS MAY BE SUBMITTED TO [email protected].



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Myriad Portfolio Manager Whitecross Rejoins ImpalaJames Whitecross, a former senior analyst at Myriad Asset Management Ltd. rejoined

$3.1 billion New Canaan, Connecticut-based long-short equity hedge-fund firm Impala Asset Management LLC, according to a person familiar with the matter.

Whitecross, 50, is an analyst for Impala covering mining companies and is based in New York, said the person.

Whitecross worked for Impala when the firm was founded in 2004 by former Tiger Management LLC portfolio manager Bob Bishop. Impala now employs the six original analysts it had at its inception, the person said.

Whitecross worked at Myriad from 2012 until earlier this year, according to the person. Before that, he was a portfolio manager and analyst at Och-Ziff from 2010 until 2012.

The Impala Fund rose 5.6 percent this year through June, the person said. The firm employs 22 analysts.

Steve Bruce, a spokesman for Impala, declined to comment. Kelly Bit

Hohns TCI Fund Hires Choudhary From Theleme PartnersThe Childrens Investment Fund Management UK LLP, the London-based hedge-fund

firm run by billionaire activist investor Chris Hohn, hired Sourav Choudhary as a partner.Choudhary, 36, joined the fund, known as TCI, last month, according to a filing with

Companies House that was made public this week. He previously worked for Theleme Partners LLP, according to the British markets regulators register of people approved to work in the industry. Theleme Partners, another London-based hedge fund, is run by Patrick Degorce, one of Hohns former partners at TCI.

Choudhary was a managing director at Karsch Capital Management LP until January 2013 and a vice president at Old Lane LP from March 2006 to December 2008, accord-ing to his LinkedIn page. He declined to comment on his new job.

Hohn is known as one of the few Europe-based activist investors, buying stakes in companies and pressuring management to make changes that might drive up the share price. TCI owns stakes in Moodys Corp. and Royal Mail Plc, according to data compiled by Bloomberg. The fund has about $8 billion in assets under management.

Linsday Fortado

RBS Sales Chief Tang Said Moving to Element CapitalRichard Tang, the head of North America sales at Royal Bank of Scotland Group Plcs

securities arm, is leaving the bank for hedge fund Element Capital Management LLC, according to two people with knowledge of the move.

Tang, who has spent almost two decades at the bank, is one of 16 members of the Treasury Borrowing Advisory Committee that the U.S. government consults with on its debt sales. His departure was confirmed by Sarah Lukashok, a Stamford, Connecticut-based spokeswoman for Britains largest state-owned lender. He will be joining New York-based Element Capital, which manages about $4.3 billion in its macro fund, said the people.

Tang didnt return messages left at his office at RBS, and telephone calls to numbers listed for his home and mobile phones. Elemental Capital founder and Chief Investment Officer Jeffrey Talpins didnt immediately return a message seeking comment.

Jody Shenn and Cordell Eddings

ON THE MOVE

Pennsylvanias Public School Employees Retirement System is scheduled to discuss hedge fund due diligence process at its finance committee meeting today, according to the agenda. Aksia LLCs Simon Fludgate, Patrick Adelsbach and Bruce Ruehl will lead the talks.http://bit.ly/1mfpClb

Aetna Inc. had $306.5 million, or 1.5 percent of its investment port-folio, allocated to hedge funds as of June 30, according to a second quarter financial supplement. http://bit.ly/1nkJjHH (see page 9)

The Health Foundation, the London-based charity working to improve the quality of healthcare in the U.K., awarded a new contract to Cambridge Associates Ltd. in Janu-ary, according to its annual report. The 807 million pound ($1.4 billion) foundation has a 22 percent target allocation to alternative assets, which are managed by Cambridge Associates through Victoria Fund LP, a vehicle to invest in a combi-nation of hedge funds and private equity. Victoria Funds general partner is Brook Street Ltd. http://bit.ly/1s585A0

Baltimore Community Foun-dation, which invests between 20 percent and 30 percent in hedge funds, was allocated to three managers as of July 31: Evanston Capitals Weatherlow Fund, Forester Diversified Ltd. and Mason Capital Management. The foundations chair is Credo Capital Management LLC chairman Tedd M. Alexander III. Cambridge Associates LLC pro-vides investment consulting.http://bit.ly/1xXE3zF

FROM THE MINUTES

For news on mandates type NI MANDATE on the Bloomberg terminal



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InterContinental Shareholder Marcato to Review StrategyMarcato Capital Management LP, a hedge fund that owns about 4 percent of InterCon-

tinental Hotels Group Plc, hired Houlihan Lokey to help it conduct a strategic review of the worlds largest provider of hotel accommodation.

The San Francisco-based hedge funds review will focus on ways of enhancing share-holder value, including improving capital structure and strategic transactions, Marcato Capital said in a statement Aug. 4. The firm said it intends to engage in direct dialogue with InterContinental regarding its proposals, as well as hold broad discussions with share-holders and industry participants.

InterContinental Chief Executive Officer Richard Solomons said in a June interview that the Denham, England-based hotelier can grow without a merger or takeover, and its $10 billion market capitalization has returned a ton of value to shareholders.

Sky News reported on May 24 that InterContinental received a bid that valued the com-pany at 6 billion pounds ($10.1 billion). The hotel operator rejected the offer, from a U.S. company, as too low, according to Sky News, which didnt say where it got the information or identify the suitor.

Marcato, responding to the report, said in a May 29 statement that a combination with a larger hotel operator would have compelling strategic and financial merit and represents a unique opportunity to reshape the global hospitality industry.

Jeffrey St.Onge

LAUNCHES

Ex-Goldman Banker Turnbull Said to Plan Hedge FundAlex Turnbull, a former executive director of Goldman Sachs Group Inc.s special situ-

ations group, is planning a Singapore-based hedge fund, said people with knowledge of the matter.

Turnbull, son of Australian Communications Minister Malcolm Turnbull, will be the chief investment officer of Keshik Capital Pte, said the people. The fund, which will be fo-cused on Asia with the flexibility to invest globally, may start as early as January and will invest in equity and credit, including convertible bonds, they added.

Keshik is at least the third hedge-fund startup tapping Asian opportunities in recent years involving a former member of the Goldman Sachs unit that invests in distressed debt and companies with its own capital. The Special Situations Group, known as SSG, is part of Goldman Sachss investing and lending operation, which generated $4.3 billion of pretax earnings last year, the most of the New York-based banks four business segments.

Turnbull, who is based in Singapore, worked for SSG for four years until earlier this year, according to his LinkedIn profile, which was verified by one of the people. SSG made investments including in Japans largest golf-course operator Accordia Golf Co. and pizza-chain Sbarro Inc.

Connie Ling, a Hong Kong-based spokeswoman for Goldman Sachs, declined to com-ment on his departure.

The Sydney native educated at Harvard University also had a stint at Mount Kellett Capital Management LP, the investment firm founded by former SSG executives Mark McGoldrick and Jason Maynard. Turnbulls other former employers include Deutsche Bank Group AG and Fortress Investment Group LLC, according to his LinkedIn profile.

Malcolm Turnbull was co-chairman of Goldman Sachss Australian unit between 1997 and 2001.

Bei Hu

ACTIVISM


There has been a pick-up in investors reconsidering investing in commodities, a report by Newedge said. The increased interest came as commodity funds, as repre-sented by the Newedge Commodity Trading Index, were the best per-formers in June, finishing the month up 0.6 percent. The index has also has its best performance since 2012 so far this year, Newedge said.

Darshini Shah

North America-based firms are continuing to dominate fund launch activity, representing approximately 70 percent of all hedge fund launch-es in the first six months of 2014, according to a report by Preqin Ltd. North America is the most estab-lished hedge fund region and it is likely that this region will continue to drive the growth of the industry moving forward, the report said. http://bit.ly/1AoN2Ok

Darshini Shah

Activist shareholders are increas-ingly targeting companies n the $250 million to $2 billion market cap range as investor disruption looks set to reach record levels in 2014, law firm Linklaters LLP said in a report July 28. These inves-tors started 272 campaigns against companies in the first six months of 2014, putting this year on track to beat last years total of 520 cam-paigns, the report said. The U.S. accounted for 81 percent of public investor activism in the first six months of the year, according to the report, which also said that a large number of activist campaigns in Eu-rope are thought to remain secret. Seeking boardroom representation is the most popular tactic among activists, accounting for 41 percent of all campaigns in 2014.

Dinesh Nair

RESEARCH ROUNDUP


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Paul Britton, founder of Capstone Investment Advisors, is selling his house in the Hamptons. Hes looking for quieter spots in Montana and Litchfield County, Connecticut, he said last week at the fifth annual Take Em to School Poker Tournament. The winner of the tourna-ment was Laurent Ghouzi, head of U.S. sales and trading at Exane. Greg Gliner of AQR Capital Management was the runner-up, and Kevin Han of Visium Asset Man-agement placed fourth. John Sabat, a portfolio manager at Cubist Systemat-ic Strategies, played at a table where he hosted John Starks, a National Basket-ball Association All-Star and New York Knicks fan favorite. Other attendees in-

cluded Jim Rodney of Highline Capital Management, Mee Warren, a trader at Two Sigma Investments, Boaz Wein-stein, founder of Saba Capital Manage-ment, Whitney Tilson of Kase Capital and Jason Mudrick, founder of Mudrick Capital Management, who finished ninth. The event at Manhattans Gotham Hall raised funds for the nonprofit Edu-

cation Reform Now, which advocates for excellence in public schools. It starts with 250 seats at $1,000 apiece, and finishes with a final table of 10 play-ers vying for prizes that include power lunches with hedge-fund manag-ers David Einhorn, Leon Cooperman and Seth Klarman.

Amanda Gordon

Upcoming EventsBY ARIE SHAPIRA

Zweig Dimenna Associates LLCs Joseph Dimenna and MSD Capital LPs Glenn Fuhrman are co-chairs for the Piaget Hamptons Cup Polo Match at Equuleus Polo Club in Watermill, New York on Sunday. The event benefits the Robin Hood Fouundation. Tickets start at $1,000. Contact NGK Global at 212-650-0007 for more information.http://bit.ly/147roNl.

Eton Park Capital Managements Avery Salisbury is co-chair of the Museum of the City of New Yorks Big Apple Bash on Thursdsay night. Van Eck Associates Celina Apostolo Merrill is on the committee. Tickets are $90 for non-members.http://bit.ly/1ud4gKo

Visit NI REDDOT for weekly listings.

OVER THE HEDGE

Mee Warren and Whitney Tilson Source: Bloomberg/ Amanda Gordon

Brief

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PERFORMANCE SNAPSHOT: LONG-SHORT EQUITY

By 3-Year Returns

FIRM FUND MANAGER INCEPTION DATE MAX 3-YEAR DRAWDOWN ANNUALIZED RETURN %

venBio Partners LLC venBIO Select Fund LLC Behzad Aghazadeh 7/1/2010 -18.26 68.06

Krensavage Asset Management LLC Krensavage Partners LP Michael Krensavage 7/1/2008 -6.33 43.15

Cushing Asset Management LP The Cushing MLP Opportunity Fund LPJerry Vane Swank, Kevin Patrick Gallagher 11/1/2006 -7.24 25.94

Perceptive Advisors LLC Perceptive Life Sciences Fund LP Joseph Eric Edelman 7/1/1999 -7.87 25.56

Horizon Asset Management LLC Polestar Fund LP Murray Stahl, Fredrik Tjernstrom 1/1/2003 -20.32 23.27

Zimmer Partners LP ZP Master Utility Fund Ltd Stuart Jason Zimmer 10/1/1997 -4.71 21.09

Arbiter Partners Capital Management LLC Arbiter Partners QP LP

Paul J Isaac, Ross B Levin 4/1/2001 -22.92 20.98

Kayne Anderson Capital Advisors LP Kayne Anderson Midstream Institu-tional Fund LP JC Frey 1/15/2009 -7.18 20.45

Iguana Healthcare Management LLC Iguana Healthcare Partners LP Stuart T Weisbrod, Daniel Chai 1/1/2010 -15.01 20.2

Ardour Asset Management LLC Ardour Sustainability Fund LP Joseph Di Virgilio 11/23/2009 -5.11 19.92

A look at some of the best-performing U.S.-managed long-short equity funds that report to Bloomberg data. Only funds with assets of $100 million or more that have reported performance through at least June 30 are included. All returns are converted to U.S. dollars. For questions, contact Anibal Arrascue at [email protected]

Establishing a 40 Act Alternative Fund

The Ultimate Guide to Tapping into the Growing Liquid Alternative Space

September 17-18, 2014 New York, NY

Day 1: Successfully Operating a 40 Act Alternative Fund

Day 2: 40 Act Alternative Fund Growth Strategies

Understanding Legal and Compliance Aspects of Launching and Operating a Liquid Alternative Fund

40 Act Primer A Comprehensive Overview of the 40 Act Space and How Alternatives Can be Integrated in

The Mechanics of a Successful Back-Office Managing Daily Operational Challenges Affecting 40 Act Alternative Funds

State of the Market How Alternative Strategies are Making Their Way into the 40 Act Space

Measuring Performance in the Liquid Alternative Space

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Topics at a Glance

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HEDGE FUNDS ADDED TO BLOOMBERG THIS WEEK

The following hedge funds were added to Bloombergs database this week. Access the Hedge Fund Database Portal by typing HFND on your Bloomberg Terminal. To view U.S. hedge fund managers, users must fill out an Accredited Investor Form (Option 13).

TICKER BLOOMBERG ID FUND MANAGER MANAGEMENT COMPANY STRATEGY MANAGER LOCATIONINCEPTION

DATE PRIME BROKER

QQGGHKB KY BBG006WRMBH4 Team Managed China Yinsheng Asset Manage-ment Ltd Macro Diversified Hong Kong 5/4/2014 N/A

ESDSMRW VI BBG006MJD7Q2 Team Managed Early Stage Managers LLC Statistical Arbi-trage Switzerland 6/30/2014 Interactive Brokers LLC

STRGLRA KY BBG006VZJF64 Team Managed FAMC Ltd Macro Diversified Switzerland 8/31/2014 N/A

K12GLOA KY BBG006W3QMS7 Team Managed Genevensis Capital SA Multi Strategy Switzerland 8/31/2014 N/A

GDOFL57 BH BBG006TK09Y3 Team Managed IIFL Capital Pte Ltd Multi Strategy Singapore 6/27/2014 N/A

NANJIAD BH BBG006WS8KN1 Team Managed Incu Capital Management Ltd Managed Futures Systematic Hong Kong 2/10/2014 N/A

SPARTLP US BBG006WSG2G0 Tripp Rudisill, Allen Hewett Spartan Capital Advisors LLCLong Short Equity United States 1/1/2007 Goldman Sachs & Co

TCACRLQ KY BBG006WXZM65 Robert Press TCA Fund Management Group Fixed Income Diversified United States 6/26/2014 Daniel Stewart & Co

SEP 4, 2014ALTMAN BUILDINGNEW YORK

Request an invitation.

SPEAKERSVAL ACKERMAN / BIG EAST CONFERENCEGARY BETTMAN / NHLSTEPHEN PAGLIUCA / BAIN CAPITAL, LLCMARC LASRY / AVENUE CAPITAL GROUP

sponsored by:



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DATE EVENT FEATURING LOCATION CONTACT / REGISTRATION

Aug. 18-19

BNP Paribas's Southeast Hedge Fund Forum

Participating managers Joseph Zupan, Birch Grove; Joshua Friedman, Canyon; Gene Salamon, Three Bridges; Shelley Greenhaus, Whippoorwill; Paul Twitchell, Whitebox.

Durham, North Caro-lina (location provided to attendees)

Private event by invitation only.

Sept. 10 China Forum 2014Theodore Shou, Skybound Capital; Qing Wang, Chongyang Investment Management; Ling Yang, Star Rock Investment Management.

Grand Hyatt Hotel, Shanghai http://bit.ly/1mcLsKz

Sept. 14-16

Institutional Investor's 11th Annual Family Office Wealth Conference

David Levy,Jerome Levy Forecasting Center; Ron Suskind; Shaun Tomson.

Montage Resort & Spa, Laguna Beach, Calif. http://bit.ly/1lKKwvk

Sept. 15-16 BHA Select Hedge Funds: Boston "Private, invitation-only cap intro event"

Fenway Park, Boston

Managers may apply online: http://bit.ly/1jypcJ1

Sept. 17-18

Financial Research Associates' Estab-lishing a '40 Act Alternative Fund

"The ultimate guide to tapping into the growing liquid alternative space."

Princeton Club, New York http://bit.ly/SbBOdZ

Sept. 17-19

Institutional Investor's European Investment Roundtable

Gustaf Hagerud, AP3; Martin Sanders, Unilever Pensioenfonds.

Ritz Carlton, Berlin http://bit.ly/1rXLgz9

Sept. 18 iGlobal Forum's Distressed Debt Investing Summit: Europe

Adam Shah, Starwood Capital; Gali Velimukha-metova, GLG Partners; Cutler Cook, PAAMCO; Khing Oei, Eyck Capital.

The Waldorf Hilton, London http://bit.ly/1hyMkrR

Sept. 21-23 Alpha Hedge West

Brian McQuade, Calpers; Gareth Henry, Fortress; Ronnie Jaber, Carlyle; Andrew Ross, PAAMCO; Sean Bill, City of San Jose.

Ritz Carlton, San Francisco http://bit.ly/1fmLw1m

Sept. 22 Catalyst Cap Intro: L/S Equity | Event DrivenIntroductions through private meetings ar-ranged prior to the event

Capital Grille Wall Street, New York Private event by invitation only.

Sept. 23-24 Mercer's Global Investment Forum

Keynote speaker Brad Katsuyama, Investors Exchange.

Toronto (location pro-vided to attendees) http://bit.ly/1oQ7GQm

Sept. 24 Hedge Funds Care's UK Golf at The Grove Golf tournament.The Grove Golf Course, Hertfordshire http://bit.ly/1kL1dUw

Sept. 29 FBN Securities Capital Introduction Event Invitation-only capital introduction event.New York (location provided to attendees) Greg Naso, [email protected]

Sept. 29-30 Quant Invest 2014

"The premier business event in Europe for quant and CTA investors and managers."

The Dorchester Hotel, London http://bit.ly/1ii8aJU

Sept. 29-Oct. 1 Context Summits West 2014

Focused on meetings between managers and investors, with speakers only during meals.

St. Regis Monarch Beach, Dana Point, CA http://bit.ly/1j2LCOD

Oct. 7 Great Investors' Best Ideas Founda-tion Symposium DallasBill Ackman, David Einhorn, Richard Perry, Boone Pickens.

Dallas (location pro-vided to attendees) www.gibidallas.com

Oct. 8 A Leg To Stand On's 3rd Annual Rocktoberfest Chicago"Rock & roll and acoustic music performed by key players in the hedge fund industry."

Crossroads at House of Blues, Chicago http://bit.ly/1hfotx2

Oct. 14-16 Context Summits Las Vegas 2014 Liquid alternatives.

Cosmopolitan, Las Vegas http://bit.ly/1j2M7rW

Oct. 16 MFA Outlook 2014 Agenda and speakers to be announced. The Pierre Hotel, New York http://bit.ly/1n2FxZa

Oct. 21-23 Salt Asia Conference John Paulson, Ben Bernanke, Larry Summers

Marina Bay Sands, Singapore www.saltconference.com

CALENDAR TO SUBMIT AN EVENT E-MAIL [email protected]



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CALENDAR...

DATE EVENT FEATURING LOCATION CONTACT / REGISTRATION

Oct. 20-22 Global Arc Boston

Speakers include Myron Scholes, Joseph Stiglitz, Paul Volcker. Boston www.global-arc.net

Oct. 22-23

Goldman Sachss Alternatives Conference Agenda and speakers to be announced. New York Private event by invitation only.

Oct. 22, 6:45pm

A Leg To Stand On's 11th Annual Rocktoberfest NYC

"Rock & roll and acoustic music performed by key players in the hedge fund industry."

Capitale, New York http://bit.ly/1i69rVs

Oct. 28-30 Alternative Asset Summit 2014 Agenda and speakers to be announced.

Caesar's Palace, Las Vegas http://bit.ly/V0W6IX

Oct. 30 AsiaHedge Awards 2014 "Celebrate the top performing hedge funds in the Asia-Pacific hedge fund industry"Island Shangri-La, Hong Kong http://bit.ly/1r4fG4u

Nov. 3-4 Hedgeopolis New YorkTed Seides, Protg Partners; David Saunders, K2; Tom Williams, Pine Grove A.M.; Ronan Cosgrave, PAAMCO;

The Roosevelt Hotel, New York http://bit.ly/1qEUKAS

Nov. 5-6 International Business Review's Alter-native Investments ConferenceGareth Abley, MLC; Andrew Weisman, Janus Capital; John Corr, Aurora Funds.

Grace Hotel, Sydney http://bit.ly/1nZw9oR

Nov. 6-7 Sixth Annual Women's Alternative Investment Summit

Keynote speakers Afsaneh Beschloss, Rock Creek Group; Barbara Novick, BlackRock; San-dra Robertson, Oxford University Endowment.

The Pierre Hotel, New York http://bit.ly/QYf6iu

Nov. 18 Fourth Annual DMS Offshore Invest-ment Funds Summit Agenda and speakers to be announced.Tivoli Sao Paulo-Mofarrej, Sao Paulo

Kate Bohner, +1 345-749-2589, [email protected]

Nov. 19 Sohn Investment Conference Agenda and speakers to be announced. Grosvenor Square, London http://bit.ly/1h8wBjf

Dec. 4 Bloomberg Alternative Investment Conference Agenda and speakers to be announced. New York http://bit.ly/1jXdCs0

Dec. 4 Hedge Funds Care UK's 9th Annual London Benefit Gala dinner.Natural History Mu-seum, London http://bit.ly/1hIq1JB

Jan. 26 MFA Network 2015 Agenda and speakers to be announced. Intercontinental Miami

Jan 28-30 Context Summits Miami 2015 Speakers to be confirmed

Fontainebleau Miami Beach http://bit.ly/1lrkDfI

March 30-31 Middle East Investment Summit 2015 Agenda and speakers to be announced.

Ritz-Carlton DIFC, Dubai http://bit.ly/1nOjsNn

REAL ESTATE Q2OUT NOW >>> Click here



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SPOTLIGHT

Michelle McCloskey, senior managing direc-tor at FRM, the fund of funds business within Man Group Plc, the worlds largest publicly traded hedge-fund firm, spoke to Bloombergs Kelly Bit about its search for event-driven and commodities managers. Man Group runs $57.7 billion in assets, of which FRM manages about $11.5 billion.

Q: Where is Man currently finding oppor-tunities in hedge funds?A: We cover all the different types of hedge fund strategies, ranging from quantitative to discretionary commodities and macro trading. We also look at household name managers all the way down to the smallest of emerging managers and have a history of seeding and being day one investors. If youre talking about things were focused on and some of the strategies right now that are interesting, we, like others, have had a lot of success and are continuing to allocate to event-driven strategies. Thats largely be-cause the deal flow has been so good this year. M&A activity is set to hit 2007 levels.

Q: Do you think the volume of M&A activity is sustainable?A: As we look at the different opportuni-ties that are presenting themselves to the mangers, we dont think were near the end of the cycle yet. Were probably about midway through.

Q: What other strategies is Man inter-ested in?A: One of the things that has been a good opportunity for managers both on the discretionary side and the systematic side is the China A share/H share trade. People are looking at whats going on in the regulatory regime and the tying of those two markets together and the opportunity to arbitrage potential conversions there. Thats been a big theme for a number of our discretion-ary managers and its also showing up in the return patterns in our quantitative managers as well. Another theme that has worked very well and come back into favor is some of our commodities managers. We have a view toward investing with specialist commodities managers that focuses on a

Man Group Focusing on Agriculture, Energy Managers, McCloskey Says

Age:52

Hometown/Residence: San Antonio, Texas/New Suffolk, New York

Education: Texas Tech University, Chemical Engineering

Family: Married, two children

Favorite Restaurant: 44 in Hells Kitchen, New York

Hobbies: Biking, fishing and bird watching

Vacation Destination: Cabo San Lucas, Long Island North Fork

particular sector of the commodities space, and there have been a number of very size-able moves in those markets, particularly in the agricultural markets this year that the specialty managers have really been able to capitalize on.

Q: Are there certain commodities youre looking to get exposure to the most right now?A: We have a tendency to hire commodities managers across the various sectors, then we swing our allocations between the vari-ous subsectors of commodities. We came in this year really focused on our agriculture and energy managers and in particular the agricultural managers have had a very good recent few months.

Q: Are you looking more for large or smaller hedge funds?A: We are definitely seeing an increased interest in managed accounts. Its some-thing weve been doing for 16 years, mainly because we felt like it was the best way to invest in hedge funds the most control, the most transparency. What we see increasingly, particularly now in North America, is the very large sophisticated plans have made the decision that they want to go direct into hedge funds and also look at all the attributes that managed accounts bring. Were definitely seeing an increased interest in the utilization of these structures for hedge fund investing.

Q: How many hedge funds is Man invested in?A: 100 names. Were always on the lookout for talented managers. Its not to say that

somebody doesnt get replaced from time to time. Turnover has averaged over mul-tiple years to be about 10 to 15 percent. We do such a variety of different things for our clients that its not necessarily a clear cut statistic.

Q: Whats the average size of allocation Man will give to its managers? A: There isnt really an average it can be very small and very large. We have some client portfolios that make investments in the $10 million to $15 million range and go up to multiple hundreds of millions.

Q: What macro themes are you currently concerned about?A: There are no huge overriding themes such as what was seen in the Japan trade last year. One seemingly common the-matic exposure is a bias towards emerg-ing markets in general both in rates and equities. Strategically, we are discussing the extremely low volatility environment, and the possibility and timing of a rate rising environment.

Q: Are more acquisitions in the works after the latest example of Man agree-ing to buy Pine Grove Asset Manage-ment in June?A: Our management team has been fairly transparent about that opportunistically well look at things that might be accretive to the company but its not part of the funda-mental business plan. If things make sense from a value perspective and are accretive then well have a look. Theres always op-portunity in the fund of funds space.



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Consumer Discretionary - XLY Consumer Staples - XLP Energy - XLE Financial - XLF Health Care - XLV Industrial - XLI Materials - XLB Technology - XLK Utilities - XLU



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