This presentation in a broad sense gives an idea about the hedge funds, their objectives, their participants, their evolution. It talks about how India attracts the eye of Hedge Fund managers world wide. The growth potential in India as an emerging economy. The various types of Hedge Funds and the strategies implemented. The indices which track Hedge Fund performances around the globe. Some empirical findings about the absolute returns generated by hedge funds. The regulatory framework in India for Hedge Funds as a part of Alternative Investment Funds as guided by SEBI
This presentation will give users a general overview of many aspects of the industry and its purpose, including:
• The benefits of hedge fund investing
• Who invests in hedge funds?
• Who regulates the hedge fund industry?
• The various strategies and types of hedge funds
• How do hedge funds generate returns for their investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Alternate grp project hedge funds in india Saurabh Mittra
HEDGE FUNDS IN INDIA, SCOPE OF HEDGE FUND, PRESENT SCENARIO, STRATEGIES OF HEDGE FUNDS, OVERVIEW OF HEDGE FUND, FEES STRUCTURE OF FUNDS, PERFORMANCES OF LOCAL AND FOREIGN FUNDS, ASSET UNDER MANAGEMENT DATA
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
This presentation will give users a general overview of many aspects of the industry and its purpose, including:
• The benefits of hedge fund investing
• Who invests in hedge funds?
• Who regulates the hedge fund industry?
• The various strategies and types of hedge funds
• How do hedge funds generate returns for their investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Alternate grp project hedge funds in india Saurabh Mittra
HEDGE FUNDS IN INDIA, SCOPE OF HEDGE FUND, PRESENT SCENARIO, STRATEGIES OF HEDGE FUNDS, OVERVIEW OF HEDGE FUND, FEES STRUCTURE OF FUNDS, PERFORMANCES OF LOCAL AND FOREIGN FUNDS, ASSET UNDER MANAGEMENT DATA
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
This presentation covers Merchant Banking History; Categories; Services provided by them; Methods of placement; underwriting; Issue management & SEBI guidelines.
In this presentation we will deal with Insurance organizations, their operational structure, insurer’s function and key business terms used in this sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
A presentation on private placements in India. If you like my presentation, please share. And I would like to know your thoughts, so comment and let me know.
It is a market place where shares of public companies are bought and sold
It is commonplace where the issuers of the shares & subscribers of the shares come together
Asset management, broadly defined, refers to any system whereby things that are of value to an entity or group are monitored and maintained. It may apply to both tangible assets and to intangible concepts such as intellectual property and goodwill.
This presentation covers Merchant Banking History; Categories; Services provided by them; Methods of placement; underwriting; Issue management & SEBI guidelines.
In this presentation we will deal with Insurance organizations, their operational structure, insurer’s function and key business terms used in this sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
A presentation on private placements in India. If you like my presentation, please share. And I would like to know your thoughts, so comment and let me know.
It is a market place where shares of public companies are bought and sold
It is commonplace where the issuers of the shares & subscribers of the shares come together
Asset management, broadly defined, refers to any system whereby things that are of value to an entity or group are monitored and maintained. It may apply to both tangible assets and to intangible concepts such as intellectual property and goodwill.
Market Outlook: Hedge Funds 2017 – Discover the Changing OutlookFIS
The hedge fund industry has ridden out a very tough period, leaving the truly tried and tested funds next to newcomers of the highest quality.
Keeping up with the demands made by prime brokers, regulators and investors will require top-notch management of resource and operations. These can help to control costs and deliver outperformance by enabling a greater level of agility to handle challenging markets.
To enable a more flexible operational base within their firms, hedge fund managers need to assess their existing provision of IT and services, along with partner relationships.
View this slideshow to discover the changing outlook for hedge funds from their own perspective as well as from key market analysts.
In collaboration with GMT Capital, Clement Ashley Consulting recently held a nation-wide capital market investors conference in ten cities. This is the slideshow of the presentation I made at the conference.
I have given this presentation at the Amsterdam Business School, University of Amsterdam. It is a practical introduction for Master students in Financial Markets about the importance of Risk Management and the tools thereof.
Stock trading strategy - when to sell your hot stockPractice of Law
Stock trading tips on hot stocks to buy now, stock market strategy, picking hot stocks, picking penny stocks, and how to buy cheap stocks. From “How to Find a Home Run Stock” and “How to Pick Hot Reverse Merger Penny Stocks” and also “How the Shorts Raid Your Stock, Destroy Your Company and What to Do About It” all by John Lux.
A hedge is an investment position intended to offset potential losses/gains that
may be incurred by a companion investment. In simple language, a hedge is
used to reduce any substantial losses/gains suffered by an individual or an
organization.
A hedge can be constructed from many types of financial instruments, including
stocks, exchange-traded funds, insurance, forward contracts, swaps, options,
many types of over-the-counter and derivative products, and futures contracts.
Public futures markets were established in the 19th century[1] to allow
transparent, standardized, and efficient hedging of agricultural commodity
prices; they have since expanded to include futures contracts for hedging the
values of energy, precious metals, foreign currency, and interest rate
fluctuations.
With all of the recent media attention surrounding hedge funds, there are bound to be some misconceptions regarding the hedge fund industry. Dick Hooey led a stimulating discussion surrounding the evolution of this esoteric investment vehicle and tried to answer the question “Just what is a Hedge Fund, anyways?”. Dick is a strategic minded finance executive with expertise in valuation and decision support analyses of transactions including acquisitions and new business ventures in consulting and corporate environments. In addition, Dick has 13 years experience managing a market neutral equity portfolio representing capital in excess of $100 million for a leading billion dollar hedge fund.
A complete introduction to investment companies, including mutual funds, exchange traded funds. Based in part on material in my book: "Figuring Out Wall Street". A part of a continuing series on the financial services industry. We develop and present custom training for the financial services industry, contact us for a quote.
Julia Butler - The Fiduciary Group - Best Practices for Meeting Fiduciary Dut...Downey Brand LLP
In her presentation at the 2015 Savannah Fiduciary Seminar, Julia Butler of the Fiduciary Group describes how plan sponsors, trustees, and investment committees can best meet their fiduciary duties to manage the plan’s investments. She outlines what should be in an effective Investment Policy Statement, and lays out the fiduciary processes to select, monitor, and replace the plan’s investment options. She also explains how a Section 3(38) fiduciary investment advisor can significantly reduce or eliminate a plan sponsor’s fiduciary liability for plan investments.
Who we are
Established in 1984, We, RKFS, offer the best financial services to put the client first. We are an independent company in the financial consultancy sector, which aims to provide consultancy and the best guidance to every client to invest in creating a future with financial freedom for the client and their family and provide customized client services as per the requirement.
Invest in creating wealth and protecting your future.
In today's world, creating wealth for us and the future generation is essential. We at R K Financial Services Group (RKFS Group) truly believe in creating wealth for the present and future. Our target is to provide the best professional solution with a personal touch to each client.
With over 3.5 decades of experience in the financial sector, we are a one-stop shop for all your financial & investment management solutions delivered with the most personalized & professional attitude and transparent & ethical business practices.
Demat account is of paramount importance because the entire financial system of managing, trading, and investing in the stock market in India is now digital. Thus, Demat and trading accounts are the essential thing of the moment for providing users with an effortless experience. The same Demat account can be used for investments in stocks, a Demat account for mutual funds, a Demat account for bonds, and a Demat account for insurance in electronic form. This account helps the investor keep their investments in order and provides an easy way to purchase or sell any product they wish to trade in. A Demat account can be more than an account that holds securities. With the help of digitisation, it can contribute to transparency in the market and provide better regulation.
Mutual Funds Investments
A mutual fund is an investment product where funds from numerous investors are invested and actively managed by an expert fund manager. The fund manager can put this pooled amount to invest in stocks, bonds, gold, or any blend of these.
Contribute through Lumpsum and SIP
Low exchange cost
Enhancement of portfolio
Liquidity and Tax reductions
Increased chance of effective money management
www.rkfs.org
The Axis NIFTY Smallcap 50 Index Fund is an Open-Ended Fund tracking the NIFTY Smallcap 50 Index,Head – Equity. Investors can invest in multiples of Rs 1. Invest in Axis nifty smallcap 50 index fund online.
For more information contact: emailus@marcusevans.com
Dominique Grandchamp, CFA Senior Investment Consultant at Mercer (Switzerland) SA delivered his presentation titled "Gauging Institutional Interest and the Role of Regulated Investment Funds in a Post Crisis World - Presentation: Dominique Grandchamp" at the marcus evans European Pensions and Investments Summit
Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today.
For more information contact: emailus@marcusevans.com
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
2. Defining Hedge Funds
Opinions differ regarding the definition of the phrase “Hedge
Fund”. The most commonly accepted definition is that a
hedge funds are the funds which:
• Have an absolute return performance objective
• Allow the manager to be active on both the long and short
sides of the markets
• Compensate the manager with performance related fees
• Allow the manager tremendous flexibility in investment
style and approach
3. What are HFs?
• “To hedge one’s bets” i.e. betting on other
side to limit the possibility of loss on a
speculation.
• Hedge funds
– pool of funds of the highly influential investors,
– open to limited number of investors
– require high investment
– include high expertise based investment strategies
and Risk management
4. Targeted Investments
They can invest in any type of asset class or opportunity luring in the
any market, be it
• options,
• derivatives,
• equities,
• bonds,
• undervalued securities,
• currencies,
• Commodities
• events such as mergers or bankruptcies,
• domestic as well as international markets where they can expect
to receive attractive returns in all kind of risky situations.
5. Motive of Hedge Funds
• Protecting capital (i.e. the private pool of
funds)
• Generating superior returns in all kinds of
markets (they are ready to take bearish
markets also)
• Attempting to minimize the risk i.e. to hedge.
6. Past Returns
40%
Bear Market Achievers Riding Asset Growth Crisis
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
2000 2001 2002 2003 2004 2005 2006 2007 2008
MSCI All- Country World Index
Hedge Fund Research Index Fund Weighted Composite Index
7. Indian Context
• Asian countries are offering many opportunities
• Market in UK and US are facing
– huge meltdowns
– investors are finding hard to sustain there
– money making options are drying
• India is offering various necessary conditions for
hedge funds to explore with its
– secondary market liquidity
– Futures
– options, etc.
8. Why India?
• Investment can be made through FII (Foreign
Institutional Investors) route.
• Doesn’t charge anything on performance or
profit of the fund
• Thus giving India a plus point from others
• Thus attracting more HNIs to enter India
through these.
9. Incremental Nominal GDP
(in Billion US $)
40,000
35,000
2035-2050
30,000
2020-2035
25,000 2006-2020
20,000
15,000
10,000
5,000
0
China India United Brazil Mexico Indonesia Russia United Germany Japan
States Kingdom
10. Working Age Population Growth Rates (% p.a.)
% p.a.
1.00%
0.50%
0.00%
-0.50%
-1.00%
-1.50%
Source: PwC Report
11. Hedge Funds in India
Cater to
Essentials for
Individual
Investors HFs
Second Registration
First Implication
Implication
Uncorrelated Increase in Independent
returns demand audit
Surge in Increase
Transparency
earnings competition
Reducing Proper
investment fees disclosure
12. Performance of Indian Hedge Funds
• $44,000 million AUM (assets under management) of all Indian hedge
2006 funds
• India’s high beta market generate effective returns.
• Bull Run
2007 • Q-India, Halbis, Baer Capital, Insynergy & FMG outperformed major
hedge fund indices.
• Experiment with complex strategies, resulted hard on the returns.
2008 • India index was the worst performing index with loss of around 50%.
• More cautious in year 2009 and 2010
2009 • Taking some worthwhile sectors and stock calls
• Gloomy picture of hedge fund success
2010 • First 7 months having almost deep losses and very bleak returns
• Funds which focused on inflation sensitive India gained around
15.48% according to HFRX India index
13. Various Hedge Fund Strategies
• Emerging Markets
– Invest in emerging markets
– Emerging markets offer less options for short selling, so these are
mostly long biased and employ growth or value approach to investing
in equities.
– These can be illiquid & carry a high risk due to correlation of emerging
economies.
• Convertible Arbitrage
– Make profit from arbitrage of convertible securities
– Make money from mispricing & volatility
– Usually buy a convertible bond, and take a short position in underlying
equity.
• Long- Short Equity
– Base strategy of the initial hedge fund formations by Jones.
– Hedging portfolio of longs by portfolio of shorts.
– Main focus on the stock picking opportunities.
14. Various Hedge Fund Strategies
• Global macro
– Invest in developed as well as developing countries.
– Enough flexibility. Can invest in any security in any market where
there is an opportunity.
• Event Driven
– Focus on events of corporate life cycle like
acquisitions, buybacks, demerger, spin-offs etc,.
• Merger/Risk Arbitrage
– Focus on the companies which are going through any merger or
takeover
– Both the acquiring company and the target.
– The risk is deal risk rather than a market risk.
15. Various Hedge Fund Strategies
• Distressed Securities
– Buying the bonds or securities of companies facing or
approaching bankruptcy or restructuring
– Tries to benefit from the price movement of these securities.
• Equity Market Neutral
– Market timing rather than stock picking.
– Taking long and short position in the undervalued and
overvalued securities
– Has low volatility.
16. Some Other Strategies
• Fixed Income Arbitrage
-Seeking arbitrage opportunities in in Fixed Income Securities
-Interest rate arbitrage
-Use of derivatives like Interest Rate futures, Caps, floors etc.
• Managed Futures
-Strategic investment or arbitrage in futures(usually Commodities and Currency)
-Spot-future arbitrage
-Contango and Backwardation arbitrage
-Calendar spread in futures
• Market Directional
-Market momentum strategy
-for very short term
-example is Jobbing
22. HFRX
• The “Hedge Fund Research Index”
• Most Widely followed index for Hedge Fund Performance
• It is comprised of all eligible hedge fund strategies. All
strategies are equally weighted.
• Evaluates the performance of Hedge Funds based on Absolute
Return and the Relative Risk.
• As a component of the optimization process, the index
selects constituents which exhibit lower volatilities and lower
correlations to standard directional benchmarks of equity
market and hedge fund industry performance.
• “HFRX India” is an index for the Indian Hedge Funds.
23. Empirical Findings
• Returns are considerably high during a volatile market which
is mean reverting in nature
• Returns during a trending market in some of the HF strategies
is low and even negative in some cases
• Well established and High Corpus HFs give a lower returns
compared to the relatively newer peers who have small
corpus
25. John Paulson
(HF: Paulson and Co.)
His claim to fame is his pay check for 2007: he is reported to have made $3.7 billion.
Strategy: Short-selling sub prime mortgage
He made a profit of $15 billion for his investors in 2007. His flagship fund generated a
return of 599%.
In 2010, he beat a hedge-fund record by making nearly $5 billion
His Flagship Fund (Paulson Advantage Fund) was down by 40% as on Sept. 2011
26. George Soros
(HF: Soros Fund Management)
Short sold 10 Billion pounds in 1992 and made 1.1 Billion $ in a single day
(Black Wednesday)
Similar speculation over the currency of Association of Southeast Asian
Nations (ASEAN) in 1997
As of March 2012 Soros was listed 22nd in Forbs among the richest people in
the world
27. Christopher Hohn
The hedge fund he manages reportedly lost $1 billion in a single month, June
2008. The size of his hedge fund went from $8 billion to $7billion.
Interestingly Hohn was a topper at HBS.
Other smart people who lost money through Hedge Funds are the Noble
Laureates Myron S. Scholes and Robert C. Merton (The LTCM case)
28. Hedge Fund Regulations In India
• SEBI regulation seeks to cover all types of funds broadly under 3
categories
• Category I AIF – those AIFs with positive spillover effects on the
economy
• Category II AIF – those AIFs for which no specific incentives or
concessions are given by the government or any other Regulator;
which shall not undertake leverage other than to meet day-to-day
operational requirements
• Category III AIF – those AIFs including hedge funds which trade with a
view to make short term returns; which employs diverse or complex trading
strategies and may employ leverage including through investment in listed
or unlisted derivatives.
29. Regulatory Constraints
• Restricting participation:
The Alternative Investment Fund shall not accept from an investor
an investment of value less than rupees one crore. Further, the AIF
shall have a minimum corpus of Rs. 20 crore.
• Avoiding wealth concentration hazards:
The fund or any scheme of the fund shall not have more than 1000
investors
• Preventing Conflict of Interest:
For a Hedge Fund, the continuing interest shall be not less that 5%
of the corpus or rupees ten crore, whichever is lower.
30. Regulatory Constraints (contd..)
• Trading in Secondary Market:
Units of AIF may be listed on stock exchange subject to a
minimum tradable lot of rupees one crore. However, AIF shall not
raise funds through Stock Exchange mechanism
• Against Concentration Alpha and Speculation:
Hedge Funds shall invest not more than 10% of the corpus in one
Investee Company.
• Preventing Moral Hazard:
AIF shall not invest in associates except with the approval of 75%
of investors by value of their investment in the Alternative
Investment Fund
31. The Category III of AIFs (the Hedge Funds)
• Proper disclosure:
Category III Alternative Investment Funds shall ensure that
calculation of the net asset value (NAV) shall be disclosed to the
investors at intervals not longer than a quarter for close ended
Funds and at intervals not longer than a month for open ended
funds.
Category III Alternative Investment Fund shall provide quarterly
reports to investors within 60 days of end of the quarter.