1 2 3 4 5 6 7 8 9 10 11 12 13 14

News, aNalysis aNd CommeNtary

RichaRds has fixes foR euRo cRisisMarathon’s Bruce Richards says the ECB needs to backstop the region’s government debt, among other measures. page 6

pRovidence fund heads mbs tableProvidence Investment and Metacapital funds lead the performance tables for mortgage arbi-trage strategies. page 10

cleaRbRook to make allocationsThe consulting firm is searching for single man-ager and fund of funds strategies. page 4

13f foRensics: monsteR WoRldWideHedge funds were net buyers of the world’s largest online-recruiting company last quarter. page 7

hedge funds ‘infeRioR:’ beRnsteinRichard Bernstein says hedge funds are “an inferior, more expensive product” than long-only investments. page 3

ab’s beinhackeR to launch stRategyStephen Beinhacker, formerly of AllianceBer-nstein, is starting his own emerging markets strategy. page 5

maRket calls, RevisitedHow predictions by Leon Cooperman, Bass-wood Capital, Copia Capital and others have panned out a year later. page 6

dubin hosts bReast canceR benefitHighbridge Capital CEO Glenn Dubin hosted the inaugural Dubin Breast Cancer benefit in New York last night. page 9

calendaRpages 12-13

spotlightCAIA CEO Florence Lombard on the latest developments in her organization. page 14

BY KELLY BITcertis capital management inc., the $300 million Santa Barbara-based family office,

is searching for three to five hedge funds, including credit, tail-risk, long/short equity or managed futures funds for allocations in the first six months of 2012.

Managers should show an acknowledgment of the macro environment and demonstrate an ability to navigate it, according to david dent, vice president and director of portfolio management at Certis. The firm is searching for funds that are willing to take measured

risk, not ones that pander to large institutions seeking low correla-tion and volatility, he said.

“I don’t feel as excited about a fund when I get on due diligence calls with the managers and it seems like they’ve structured it so that a big insurance company can cut a $100 million check,” Dent said in a telephone interview. “Our risk appetite is a little heavier than that.”

Initial allocations usually range from $1 million to $5 million, he said. Certis considers funds of many sizes and is invested in man-agers who have less than $10 million in assets, Dent said. It has not invested in funds with more than about $10 billion.

Managers should show they navigated 2008 “particularly well” and have track records that date back at least through that year, Dent said.

Within its search for credit managers, Certis is considering structured credit and private credit funds, including those that make loans, includ-

ing mortgages or leases, or do receivables financing, among other strategies, Dent said.“Anything that has credit emphasis is attractive to us,” Dent said. “The economy is

growing but it’s growing very slowly. In that kind of environment, we think credit generally provides better risk-adjusted returns more reliably than do the growth stories.”

Certis’s clients have asked for so-called “black swan” funds, which the firm does not cur-rently have, Dent said. The firm prefers funds that don’t “get clobbered” in up markets, like in 2009 and 2010, he said.

“If what continues to happen with Europe, if that situation continues to deteriorate, then we will definitely be adding more tail-risk type investments,” Dent said. Certis may decrease its long-only exposure and increase its long/short equity allocation should the European debt crisis continue to roil markets, he said.

Certis just concluded its review of 50 managed futures funds and will make an alloca-tion likely this month, Dent said. It will continue to search for additional managed futures funds, he said.

Certis invests more than half of its assets, or $150 million, in alternatives, 20 percent of which, or $30 million, goes to hedge funds.

Certis Seeks up to Five Funds in First Half of 2012

David Dent

InStItutIon AlloCAtIon ($Mln) SeArCH SpeCIFICS MAnAger requIreMentS

Clearbrook investment Counseling N/a equity long/short, multi-strategy, commodity trad-ing advisers or global macro funds. Funds of funds.

Quarterly liquidity. “superior risk-return profile.”

luminous Capital N/a Credit strategies, specifically middle-market lending.

three-year, audited track record. Between $200 million and $1 billion in assets. Quarterly or monthly liquidity.

new MAndAteS

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1 2 3 4 5 6 7 8 9 10 11 12 13 14

8.18%

3.90%*

15.06%

2.47%

-3.79%-3.11%

1.08% 1.46%

Hedge Funds Funds of Funds S&P 500 2-Year Treasuries

2010 total returns

2011 YTD total returns

*from Feb. 26, 2010

(Merrill Lynch Total Return Index)

hedge fund ReturnsBloomberg BAIF indices, which represent all funds tracked by Bloomberg data, are the source of the below hedge fund and fund of funds data.

returnS In BrIeF

StrAtegy BlooMBerg Index Code 2010 noveMBer

20112011 yeAr-to-

dAte

mortgage-Backed arbitrage BBHFmarB 24.6 0.0 10.6

Fixed income arbitrage BBHFFarB 11.2 0.6 4.3

asset-Backed securities BBHFastB 13.3 -0.8 3.1

Capital structure arbitrage BBHFCred 2.1 -0.3 1.2

Convertible arbitrage BBHFCarB 7.3 0.1 -0.3

short-Biased equities BBHFsHrt 1.7 -1.8 -0.6

market-Neutral BBHFmNFl 0.1 -2.0 -1.2

Cta/managed Futures BBHFmGdF 9.1 3.8 -1.6

multi-strategy BBHFmlti 3.7 -1.0 -1.8

merger arbitrage BBHFmerG 2.1 -1.1 -2.1

long/short equities BBHFlseQ 7.3 -2.1 -3.8

equity statistical arbitrage BBHFstat 3.4 -9.0 -4.4

Global macro BBHFmCro 4.4 -1.5 -4.8

emerging market debt BBHFemdB 5.3 0.1 -6.3

distressed securities BBHFdist 1.7 -0.3 -6.4

long Biased equities BBHFloNG 11.0 -1.9 -11.1

Source: Bloomberg Hedge Fund IndicesType HFND<GO> to view return statistics

returnS By StrAtegy

■ etekene capital management llc’s Master Fund, a long/short equities strategy, gained 1.8 percent in November and is up 5.3 percent year-to-date through Nov. 30, ac-cording to a performance report sent to investors that was obtained by Bloomberg. Long exposure to financial companies was one of the main drivers of positive performance, according to the report. peter carlin and charlie carr manage the portfolio.

■ prologue capital, the $1.2 billion London- and Greenwich, Connecticut-based alternative investment firm that manages a discretionary fixed income strategy focused on inflation-linked investments, gained 1.8 percent in November and 7 percent this year, according to a person briefed on the returns, who asked not to be identified because the information is private. graham Walsh, principal and chief investment officer, over-sees Prologue’s portfolio managers and funds.

■ West side advisors llc’s West Side Agency Fund gained an estimated 1 percent in November, bringing year-to-date returns to 18.6 percent, according to a letter to investors, a copy of which was obtained by Bloomberg. The mortgage arbitrage fund is managed by andy ball and vlad kotlyarsky.

–Compiled by Nathaniel E. Baker and Kelly Bit

For this week’s Performance Snapshot, featuring mortgage arbitrage funds, see page 10.

12.13.11 Bloomberg Brief | Hedge Funds 2

bloomberg brief hedge funds newsletter Ted Merz executive editor tmerz@bloomberg.net 212-617-2309

bloomberg news Rob Urban managing editor robprag@bloomberg.net 212-617-5192

hedge funds Nathaniel E. Baker editors nbaker14@bloomberg.net 212-617-2741 Melissa Karsh mkarsh@bloomberg.net 212-617-4557

Reporter Kelly Bit kbit@bloomberg.net 212-617-1097

contributing Katherine Burton Reporters kburton@bloomberg.net 212-617-2335

Saijel Kishan skishan@bloomberg.net 212-617-6662

contributing Matthew Kelly data editors mkelly17@bloomberg.net 609-279-5064

Anibal Arrascue aarrascue@bloomberg.net 609-279-5084

newsletter Nick Ferris business manager nferris2@bloomberg.net 212-617-6975

advertising bbrief@bloomberg.net 212-617-6975

Reprints & Lori Husted permissions lori.husted@theygsgroup.com 717-505-9701

To subscribe via the Bloomberg Professional Terminal type BRIEF <GO> or on the web at www.bloomberg.com/brief/hedgefunds

© 2011 Bloomberg LP. All rights reserved.

This newsletter and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints and permissions group listed above for more information.

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BY DAvID WILSONHedge funds are increasingly

worth avoiding as 2012 draws closer, according to Richard bernstein, chief executive officer of a money-management firm that bears his name.

The funds are “an inferior, more expensive product” than investing in stocks, bonds and other types of assets through so-called alloca-tion strategies, Bernstein wrote in a Dec. 9 report on his outlook.

As the chart illustrates, a Bloom-berg index of Treasury notes and bonds has beaten two composite indexes from hedge fund Re-search inc. since 2008. One of the HFRI indexes tracks individual funds and the other consists of funds of funds, which own stakes in multiple hedge funds.

Bernstein, named to Institutional Investor

magazine’s All-America Research Team Hall of Fame this year, included a similar chart in his report. The New York-based CEO of Richard bernstein advisors llc wrote that shunning alternative assets, es-

pecially hedge funds, was among his five favorite investment themes for next year.

Investing in Treasuries was an-other of his themes. He also rec-ommended the U.S. over emerg-ing markets for stock investors, shares of smaller U.S. companies rather than larger ones, and relatively small stakes in gold and other commodities. The outlook is posted on his website.

Bernstein runs an asset-alloca-tion mutual fund for eaton vance corp. that opened at the start of this quarter. Class A shares of the Eaton vance Richard Bernstein All

Asset Strategy Fund advanced 3.7 percent through last week. The fund’s primary benchmark, the Barclays Capital U.S. Ag-gregate Bond Index, rose 0.4 percent in the same period.

Hedge Funds Are Inferior pick, Bernstein Says

CHArt oF tHe week

60

70

80

90

100

110

120

130

12/07 4/08 8/08 12/08 4/09 8/09 12/09 4/10 8/10 12/10 4/11 8/11

Source: Bloomberg

Treasuries vs. Hedge Funds, Funds of Funds

Bloomberg/EFFAS U.S. Government Bond Total Return IndexHFRI Hedge Fund IndexHFRI Fund of Hedge Funds Index

12.13.11 Bloomberg Brief | Hedge Funds 3

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MAndAteSClearbrook looks for Single Managers, Funds of Funds

clearbrook investment counseling, the New York- and Stamford, Connecticut-based consultant that has more than $40 billion under advisement, is searching for equity long/short, multi-strategy, commodity trading advisers or global macro hedge funds or funds of funds for client allocations.

Initial investments range depending on the client and fund from as little as “a couple million” to more than $25 million, according to tim ng, managing director at Clear-

brook. The firm prefers that funds have a minimum of $300 mil-lion in assets and a two- to three-year track record, Ng said in a telephone interview.

It will typically consider strategies with quarterly or more frequent liquidity, he said. Certain strategies that have a one-year lock up may be considered if it offers quarterly liquidity thereafter, Ng said.

Clearbrook is looking for funds with a “superior risk-return profile,” that can profit in rising markets and hedge against losses.

The firm recommends that its clients make about a 10 to 20 percent allocation to hedge funds or funds of funds. It requires full transparency from its managers.

“It’s the ability for managers to work with a consultant like our-selves and have a real collegial relationship, whereby we’re able to exchange market, manager and portfolio management intelligence

directly,” Ng said. “We’re not looking for a sales pitch.”Clearbrook works with endowments, foundations, corporate pension plans, insurance

companies, high net worth families and investment management firms. The firm also has offices in Princeton, New Jersey, Boston and Wayne, Pennsylvania.

—Kelly Bit

luminous Searches for Middle-Market lending Fundsluminous capital, the $4.7 billion Los Angeles and Menlo Park, California-based fund

of funds and investment adviser, is searching for hedge fund strategies that have low cor-relation to publicly-traded markets, including credit strategies.

The firm sees an opportunity specifically in middle-market lending, according to alan Zafran, partner at Luminous. It manages almost $1 billion in alternative investments.

“That’s a space that will give you attractive rates of return, which we think will perform arguably better than high-yield bonds with less risk,” Zafran said in a telephone interview. “Many of the traditional lenders in that space have gone away. You’re in a situation where you have fewer providers of capital and lending terms are now stronger for the lender, because loans are being done with stricter covenants, less debt-to-equity ratios, more favorable financial terms.”

Luminous prefers managers with at least a three-year audited track record, Zafran said. Initial allocations can range from as little as $10 million to more than $100 million, depending on the given client and hedge fund. Funds should ideally have more than $200 million and less than $1 billion in assets, he said.

“We want a fund that’s big enough to be attracting top-notch caliber talent and institu-tional flows of market opportunities, but we want it small enough to be nimble,” Zafran said. Luminous also prefers that funds have “significant resources,” including a so-called “big four” accounting firm and “credible” administrator.

Luminous prefers monthly or quarterly liquidity and no investor- or fund-level gates, un-less it’s a private equity strategy in which every investor’s capital is locked up. The firm will not invest in black-box funds or “opaque” strategies that lack transparency, Zafran said.

—Kelly Bit

BrIeF exCluSIveS

buchan’s hunter global to Return cashBY KELLY BIT

hunter global investors lp, the $1 billion hedge fund run by duke buchan iii, is returning capital to investors following poor perfor-mance this year, according to a letter sent to clients.

“The past year, particularly the last four months, has been frus-trating,” Buchan said in the letter, a copy of which was obtained by Bloomberg News. “Our recent draw-down does not meet our organiza-tional or my personal expectations.”

Hunter, which outperformed U.S. stocks by 46 percent from its incep-tion in 2001 through March 31, according to the letter, has struggled this year as market swings driven by Europe’s sovereign-debt crisis under-mined asset selection, Buchan said.

Buchan, who didn’t give returns for later months in 2011, said clients will receive a “substantial portion” of their money in January. The firm’s investments are mostly “liquid” with the exception of a holding in aveta inc., which repre-sents about 3.6 percent of each of Hunter’s funds.

Buchan founded the New York-based long-short equity fund and serves as its chief investment officer and primary portfolio manager. Be-fore founding Hunter, he was a man-aging director at maverick capital ltd. and served as the sector head of its global financial services group. Before that, he was a vice presi-dent at Merrill Lynch & Co. in New York, where he also specialized in corporate finance and mergers and acquisitions in the United States, Europe and Latin America.

“My decision is a personal one,” Buchan said in the letter. “It has been distressing for me to know, despite our best efforts, the extent to which our recent drawdown has impacted you.”

Fund FoCuS

Tim Ng

12.13.11 Bloomberg Brief | Hedge Funds 4

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on tHe MoveHFC Advisory Adds prince Andreas of liechtenstein to Board

hfc advisory group, the Tokyo-based alternative investments consulting firm, named Prince andreas von liechtenstein to its advisory group’s board, according to an e-mailed statement.

The firm was established earlier this year by Chief Executive Officer stefan nilsson. It plans to make additional hires in Asia in the coming months, the statement said. The firm’s clients include hedge funds, private equity and real estate funds and other alternative investment managers.

von Liechtenstein is the president of the Scandinavian Association of the Sovereign Military Hospitaller Order of St. John of Jerusalem of Rhodes and of Malta. Nilsson previously worked in capital introduction and asset management at Bear Stearns Cos. and Jpmorgan chase & co. He also founded the Hedge Funds Club network in Tokyo, Singapore and Hong Kong.

—Kelly Bit

paulson Marketer larry pokora leaves After Five yearslarry pokora, a marketer at billionaire John paulson’s hedge fund, paulson &

co., has left the firm after five years.Pokora departed the $28 billion hedge fund last week, armel leslie, a spokesman

for the New York-based firm, said in a telephone interview. Pokora couldn’t be reached for comment.

Paulson lost 46 percent this year through November in one of his biggest funds, ac-cording to an investor update obtained by Bloomberg News.

—Saijel Kishan

lAunCHeSex-AllianceBernstein’s Beinhacker to Start eM Fund

stephen beinhacker, formerly of alliancebernstein, will start emerging markets long/short equity hedge fund congruent equity in the second quarter of 2012.

The New York-based firm currently has $7.5 million in commitments, Beinhacker said in a telephone interview. The Congruent Equity Emerging Markets Opportunity Fund will focus on non-commodity equities that trade above $3 million a day, he said. Up to 25 percent of the fund’s assets will be in developed market equities that have exposure to emerging-market themes. The portfolio will contain between 50 to 75 long positions and 40 to 60 shorts.

Congruent Equity will aim to identify companies for a two- to three-year time ho-rizon. Its quantitative work will be used to confirm the fundamentals, he said. The portfolio will have two types of investments: so-called “standalone investments,” which will be either long or short positions, and hedged holdings, similar to a market-neutral strategy, in which the fund will take both longs and shorts within the same sectors and countries. Gross exposure will range between 70 to 130 percent and net exposure between 30 and 50 percent.

Beinhacker was mostly recently chief investment officer for the emerging markets growth service at AllianceBernstein, which he joined in 1992. He was previously at Lehman Brothers Holdings Inc. and Solomon Brothers.

Congruent Equity will launch with five employees, a partner whose identity Bein-hacker would not disclose, a chief financial officer/chief operating officer, analyst and trader.

—Kelly Bit

brief exclusives

12.13.11 Bloomberg Brief | Hedge Funds 5

Many hedge fund strategies “should be thought of as being ‘short vol’,” according to “The Nature of Alpha,” written by arthur m. berd, a former quant manager at blue-mountain capital management lp and Lehman Brothers:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1519914

The number of hedge funds liquidating rose to 213 in the third quarter, the worst three-month period for the industry since the first quarter of 2010, Chicago-based hedge fund Research inc. said in a report released Dec. 8. In the second quarter, 191 hedge funds shut and the number of hedge funds started declined to 265 from 280:

http://www.hedgefundresearch.com/index.php?fuse=products-irmm&1301697969

October redemptions were $9 billion, more than triple September’s $2.6 billion outflow, according to barclayhedge and trimtabs investment Research. Industry assets decreased for the third straight monthly decline:

http://www.barclayhedge.com/research/press_releases/PR_TT_Dec_12_2011.html

globeop financial services’ Capital Movement Index for December showed that hedge fund inflows will advance 1.6 percent. GlobeOp’s data represents about eight to 10 percent of the hedge fund industry, with $171 billion in assets under administration:

http://www.globeopindex.com/capital_movements.go

More than half of female managers of alter-native investment funds, including hedge funds, plan to launch new funds within the next 18 months, according to a study by Rothstein kass and 85 Broads:

http://www.rkco.com/WomenInvestments/

So-called hedge fund-like mutual funds, which incorporate strategies such as short-ing stocks, generally have higher manage-ment fees than hedge funds, according to the December issue of litman gregory’s No-Load Fund Analyst. Mutual funds with “hedge-like” characteristics charge an average of 2 percent in fixed fees, Gregory wrote. Hedge funds charge an average of 1.5 percent, according to Bloomberg data.

No online source

reSeArCH round-up

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MArket CAllS

euro Zone Faces ‘Complete deterioration:’ MarathonThe euro zone is approaching “a state of complete deterioration, dislocation and depres-

sion,” according to bruce Richards, co-founder of the $10 billion hedge fund firm mara-thon asset management lp in New York.

To prevent this scenario, the European Central bank needs to commit to spending an average 100 billion euros ($133 billion) a month during the next two years to backstop the region’s govern-ment debt, Richards said this month in what he titled an open letter on resolving the crisis. The purchases should extend to even top-rated countries including Germany and France.

Bond purchases “will prove highly supportive as EMU countries benefit from lower government borrowing costs, while the financial and corporate sector gain incremental liquidity, which on the mar-gin is a necessary condition,” Richards said in an e-mail last week.

Others measures needed, he said, include a restructuring of Por-tugal’s debt, and as much as 1 trillion euros in asset sales and 300 billion of capital raised to shore up bank balance sheets.

—Abigail Moses and Shannon D. Harrington

kilduff Says premium on Crude Calls ‘Justified’The high price of call options on $150 per barrel crude oil is justified, according to

John kilduff, a partner at again capital llc.“There’s a lot going on that has justifiably amped up the security premium,”, Kilduff said in a

telephone interview. “That’s why you see the interest in the $150 strikes on these call options.”The prospect of oil topping $150 a barrel within a year has become the biggest bet in

the options market as the U.S. and Europe work to limit Iran’s crude sales. The number of outstanding calls to buy oil at $150 next December has jumped 29 percent since a Nov. 8 United Nations inspectors’ report on the Persian Gulf country’s nuclear program, to more than any other option on the New York Mercantile Exchange.

—Asjylyn Loder

Zadig Sees Italy as ‘Fertile ground for Stock picking’Memnon, the long-only strategy managed by London-based Zadig asset manage-

ment, has long positions in three Italian companies, according to its monthly letter to investors, a copy of which was obtained by Bloomberg.

The fund “built a position” in diagnostics manufacturer diasorin spa and has “direct and indirect exposure to Italy” through machinery manufacturer danieli & co. and luxury brands produced by French retailer ppR, its largest holding.

With Italy running a primary budget surplus and its industrial exporting companies standing to benefit from a weaker currency, the country “is a fertile ground for stock picking with sev-eral world class companies, run by entrepreneurs, with solid balance sheets,” the letter said.

Memnon is managed by laurent saglio and vincent bourgeois. —Nathaniel E. Baker

Algebris’s Friedman Says CoCos May not Sell MuchStrong banks may find contingent convertible bonds expensive and less credit-worthy

institutions will have trouble selling the instruments, according to James friedman, parter at algebris investments.

“Strong banks will find it easier to find buyers but they may decide it is an expensive way to raise capital,” said Friedman whose London-based hedge fund invests in CoCos and other bank securities. “For stressed banks it will be difficult.” Lenders would prefer to reach the target by reducing assets and retaining earnings rather than selling CoCos that carry a high interest rate, he said.

—Liam Vaughan

As reported in the Dec. 7, 2010 edition of Bloomberg Brief: Hedge Funds:

leon cooperman chief executive officer of omega advisors inc., said u.s. equities would advance by about 11 percent in 2011.–The S&P 500 Index was down about 2.1 percent on the year through Dec. 12, closing yesterday at 1236. To make Cooperman’s pre-diction accurate, the index would have to gain 13 percent by Dec. 31 to reach 1395, a level it has not broached since June 2008.

basswood capital management llc’s matthew lindenbaum liked stocks of citigroup inc. and mor-gan stanley as part of a “theme of recapitalization, normalization and consolidation.”– Citi’s stock has dropped by 42.5 percent in 2011 through yesterday’s close. Morgan Stanley’s stock price lost 43.5 percent over the same period.

copia capital llc managing partner timothy flannery said oil prices would increase in 2011.– The price of crude rose from about $90 per barrel at the time of Flannery’s statement to a 52-week high of $114.58 on April 29 before dropping to a low of $76.07 on Oct. 4. It has since rebounded to around $97.75 where it was trading yes-terday, 9 percent higher than when Flannery made his prediction.

centaurus capital lp and david-son kempner capital manage-ment llc were short mediaset espana comunicacion sa.–The stock price of Spain’s largest commercial television station has dropped by more than 50 percent over the past year.

—Nathaniel E. Baker

Bruce Richards

12.13.11 Bloomberg Brief | Hedge Funds 6

MArket CAllS, revISIted

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Hedge funds were net buyers of monster Worldwide inc. in the third quarter, adding 1.8 million shares on aggregate, accord-ing to Bloomberg data.

bridgewater associates lp added 1.4 million shares during the quarter, more than any other institutional shareholder. Still, even the company’s largest hedge fund shareholder, lapides asset management llc, is just 15th-largest among institutional shareholders of all types.

The world’s largest online-recruiting company, subject of at least 20 takeover rumors in the past five years, may finally be

cheap enough to lure a private equity buyer, Bloomberg News reported yesterday. Its stock has plunged 66 percent this year, the most in the Standard & Poor’s 500 Index, as American busi-nesses remained reluctant to hire. New York-based Monster is now trading at a 7 percent discount to sales, cheaper than 90 percent of U.S. Internet software and services companies, ac-cording to data compiled by Bloomberg. It’s also generating twice as much cash relative to its share price as the industry median, the data show.

–Charles Mead, Tara Lachapelle and Nathaniel E. Baker

13F ForenSICS: MonSter worldwIde

largest hedge fund shareholders as of september 30

Hedge Fund AMount Held vAlue on Sept. 30*

vAlue on deC. 12*

lAteSt CHAnge (SHAreS)

lAteSt CHAnge (perCent)

perCentAge oF port-FolIo

lapides asset management llC 2,832,900 20 23 1,180,300 71 3.4

Bridgewater associates lP 1,597,390 11 13 1,430,385 856 0.2

m.a. weatherbie & Co. inc. 1,373,017 10 11 309,075 29 1.3

saC Capital advisors lP 968,554 7 8 102,073 12 negligible

s squared technology Partners lP 758,200 5 6 248,100 49 1.2

Highbridge Capital management llC 541,415 4 4 541,415 100 negligible

Harvey Partners llC 500,000 4 4 500,000 100 1.7

renaissance technologies llC 447,748 3 4 329,400 278 negligible

Paw Capital Partners lP 375,000 3 3 275,000 275 2.6

Palisade Capital management 267,150 2 2 -291,810 -52 negligible

Citadel llC 182,040 1 1 -460,341 -72 negligible

Peak6 investments lP 146,619 1 1 144,053 5614 negligible

two sigma investments 117,578 1 1 117,578 100 negligible

* $millions

12.13.11 Bloomberg Brief | Hedge Funds 7

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family offices seek to shield clients from secBY ELIZABETH ODY

Family offices in the U.S. are trying to avoid regulation that would force them to reveal financial details about their privacy-conscious clients.

Family office firms must register as investment advisers by March 30, unless they qualify for a new exemp-tion from the U.S. Securities and Exchange Commission. Registering may entail initial fees of $50,000, as well as annual compliance costs of $50,000 to $100,000 or more, ac-cording to John duncan, principal of duncan associates in Chicago. Advisers that register must publicly disclose assets and identifying infor-mation about their businesses.

“Most of them will do almost anything to avoid having to register,” said martin lybecker, a partner with perkins coie llp who represents the Private Investor Coalition Inc., a lobbying group of family offices. “It’s viewed as incredibly expensive and of no value to the office.”

For single-family offices, complying with the definition may mean getting rid of nonfamily investors.

“It may be the ‘Dutch uncle,’ some-one who’s close to the family but not technically part of the family,” who has to be removed from the office, said Lybecker.

The rule may drive more families to fire their in-house money managers and move investment decisions to an outsourced chief investment officer, said mindy Rosenthal, executive director of the institute for private investors. The percentage of family offices that outsource their CIO role has about doubled since 2005, to almost half, according to IPI.

“Our rules are clear on what constitutes a family office and we will enforce the law as appropriate,” Kevin Callahan, an SEC spokesman in Washington, said in an e-mail. He declined to comment further on en-forcement actions the agency might take against unregistered advisers.

regulAtory/CoMplIAnCe

MF global execs don’t know How Funds went Missing Three of mf global holdings ltd.’s top executives said they didn’t know what hap-

pened to as much as $1.2 billion in client funds that went missing in the days before the New York-based brokerage filed for bankruptcy.

henri steenkamp, chief financial officer of MF Global, and bradley abelow, the firm’s president and chief operating officer, said in testimony prepared for a Senate Agriculture Committee hearing today that they still don’t know the location of the funds.

Jon s. corzine, former chairman and chief executive officer of the broker, is scheduled to testify at the same witness table, after telling U.S. House lawmakers last week that he never intended to authorize any misuse of client money.

“I do not know why these funds cannot be accounted for, but based on the fact that no shortfalls had been reported to me previously, it appears that any irregularities were likely caused by events that occurred shortly before the bankruptcy filing,” Steen-kamp said in the testimony.

—Silla Brush and Clea Benson

u.S. Chamber proposes expanding SeC to 7 Members The U.S. Chamber of Commerce proposed expanding the Securities and Exchange

Commission to seven members from five as part of a program aimed at “restoring the SEC as the world’s premier financial services regulator.”

The Chamber’s Center for Capital Markets Competitiveness made the proposals in a report released in Washington today.

—Gregory Mott

rajaratnam gets passport, Money Back After entering prisonRaj Rajaratnam, the galleon group llc co-founder serving an 11-year prison sen-

tence for insider trading, can have his passport back, along with the title to his $17.5 mil-lion Manhattan apartment and $2.5 million in cash.

Rajaratnam, 54, reported to a federal medical prison in Ayer, Massachusetts, Dec. 5 to begin serving his sentence. U.S. District Judge Richard holwell agreed with prosecutors that Rajaratnam’s assets, which secured his $100 million bond, should be returned.

“The defendant has fulfilled all the conditions of the appearance bond and he is currently in the custody of the Bureau of Prisons serving his sentence,” lawyers for Rajaratnam and the government said in an agreement endorsed by Holwell Dec. 9 and released yesterday.

Holwell ordered the passport turned over to Rajaratnam’s lawyers. Unless his conviction is reversed on appeal, it’s unlikely Rajaratnam will be able to use it. U.S. passports expire after 10 years and Rajaratnam isn’t due to be released until 2021, according to the Bureau of Prisons website.

—Bob Van Voris

touradji Agrees to pay $1.3 Mln for Stock-trading violationstouradji capital management lp, the commodity fund founded by paul touradji,

agreed to pay $1.3 million in repayments and fines for breaching a rule on trading shares, according to a U.S. Securities and Exchange Commission order.

Touradji Capital, based in New York, made $833,976 from October 2007 through July 2008 buying shares from an underwriter, broker or dealer participating in an initial public offering after having sold the same stocks during a restricted period, according to the document dated Dec. 9. Touradji agreed to repay the profit, as well as $119,360 in prejudg-ment interest and a $350,000 penalty to settle the case, according to the order.

Rule 105 forbids short-selling securities during a restricted period and buying the same securities in the public offering. A spokesman for Touradji, declined to comment.

—Maria Kolesnikova

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■ John paulson and Julian Robertson are among 80 co-hosts at a breakfast fun-draiser for Republican presidential candi-date Mitt Romney tomorrow, the New York Post reported. The $2,500 per head event will be held at Cipriani 42nd Street in New York. Later in the day third point llc Founder daniel loeb and elliott man-agement corp. President paul singer co-host a separate fundraiser for Romney at the Park Avenue home of blackstone group lp vice Chairman tom hill, ac-cording to the Post story.

—Nathaniel E. Baker

■ Two nominees have taken themselves out of the running for the T.S. Eliot Prize for Poetry as a form of protest of its sponsorship by London-based hedge fund aurum funds ltd, according to a story in the International Business Times. The event’s organizer lost its funding and negotiated with the hedge fund for a three-year sponsorship deal, the publica-tion reported. John Kinsella, one of the nominees, said that Aurum’s business did not sit well with him on both a political and ethical level, the International Business Times quoted him as saying.

—Melissa Karsh

■ ikos asset management Chief Executive Officer elena ambrosiadou will donate 180,000 euros ($241,200) for copies of eight statues exhibited in the Louvre to be returned to Greece, Kathime-rini reported, without saying where it got the information. The copies of the original second century B.C. statues, which were removed from Ambrosiadou’s birthplace Thessaloniki by French paleographer Emanuel Miller in 1862, after he received permission by the Ottoman authorities to do so, the newspaper said. They will return to Greece’s second largest city in 2012 when it celebrates the hundredth anniversary of becoming part Greece, the Athens-based newspaper reported. The statues, called “Las Incantadas”, or the enchanted ones, by the city’s Sephardic speaking Jewish community and “Eidola”, the idols, by its Greek population, show the mythical figures Maenas, Dionysos, Ariadne, Leda, Ganymede, Dioscuros, Aura and Nice, Kathimerini reported.

—Stelios Orphanides

■ mikhail gurevich, managing partner at New York-based dominion capital, received the distinguished young alumni award from Boston University’s College of

Engineering, according to the university’s website. The award honors outstand-ing alumni within 10 years of graduation. Gurevich, who is currently pursuing his MBA at Boston University, has been involved in a number of startups and also leads and raises money for the Technol-ogy for Entrepreneurs Club at the univer-sity, the story said.

—Melissa Karsh

■ steven bell, chief economist at glc ltd. in London and a former U.K. Trea-sury economist said London’s financial sector is “relieved” at U.K. Prime Minister David Cameron’s veto of a European treaty last week. “For the U.K. economy it’s the equivalent of North Sea oil and it’s not running out,” Bell said of financial services.

—Kevin Crowley and Ambereen Choudhury

■ granite point capital lp leased 4,800 square feet in Boston’s financial district, according to a report in Banker & Trades-man. Currently located at 222 Berkeley Street, Granite Point will take over the fifth floor of its new space at 109 State Street, the publication reported.

—Melissa Karsh

over tHe Hedge

glenn dubin hosts first breast cancer benefitBY AMANDA GORDON

highbridge capital management llc’s glenn dubin hosted the inaugural Dubin Breast Cancer benefit at the Mandarin Oriental in New York last night.

Dubin’s wife, Dr. Eva Andersson-Dubin, an internist at NBC, is a breast cancer survivor. Eight years ago, after her diagnosis, she decided to create a treatment center “that gives the best possible care and makes the patient feel special,” she said.

The Dubins gave $16 million to found the Dubin Breast Center at Mt. Sinai Medical Center, where Glenn Dubin is a trustee. The 15,000-square-foot facility opened on April 6, 2011 and has seen 10,000 patients.

“Philanthropy isn’t an important part of Swedish life, it’s really my husband who taught me,” Andersson-Dubin said of her spouse, who is one of the founders of the Robin Hood Founda-tion. “For me, it’s very simple: I love philanthropy but I will only do things that I really know about, and feel emotionally inter-ested in.”

Now that the center is in full swing, the Dubins are working to build a donor base. The event last night raised $1.5 million and drew 400 guests including tudor investment corp.’s paul tu-dor Jones, blue Ridge capital llc’s John griffin, fortress

investment group llc’s michael novogratz, sac capital advisors llc’s scott bom-mer, moore capi-tal management lp’s louis bacon and Blackstone Alternative Asset Management’s Richard salomon.

Jones’s daughter, Caroline Jones, 21, performed. She is a singer-songwriter whom Tommy Mot-

tola himself took to Nashville to meet with producers, he said. This semester she’s been touring boarding schools – Hotchkiss, Choate, Rye Country Day – to pass on inspiration to young students, she said. At the benefit she performed her own song, “Love You Better,” as well as “Stand By Me,” joined by violinist Charlie Siem and R&B belter Charles Perry.

Dr. Eva Andersson-Dubin and Glenn Dubin. Photographer: Amanda Gordon/Bloomberg.

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FIrM Fund MAnAger InCeptIon dAte SHArpe rAtIo return %

Providence investment management llC Providence mBs offshore Fund ltd russell J Jeffrey 5/1/2004 2.4 20.9

midway Group llC/the midway market Neutral international Fund ltd-a robert sherak 3/28/2002 3.9 19.0

west side advisors llC waF Fund lP Gary lieberman 8/1/2008 4.5 17.3

structured Portfolio management llC sPm directional mortgage Prepay Fund ii lP william mok 2/29/2008 2.7 16.5

metacapital management lP metacapital mortgage opportunities Fund lP deepak Narula 8/1/2008 2.7 16.1

structured Portfolio management llC sPm Core Fund lP william mok 6/1/2009 3.9 15.2

structured Portfolio management llC Parmenides Fund lP william mok 5/30/2003 3.0 15.0

structured Portfolio management llC structured servicing Holdings lP william mok 2/1/1998 4.0 13.2

KwK management llC KwK Partners lP douglas J Brown 5/1/1998 7.4 11.7

iNG alternative asset management llC iNG mortgage investment Fund Peter Guan 1/18/2011 N.a. 11.1

for sharpe ratio calculation Methodology type flds sharpe <go> on blooMberg. “risk free rates” idoc 2047613 <go>

by year-to-date Returns

A look at some of the best-performing mortgage-backed arbitrage hedge funds that report to Bloomberg data. Only funds with assets of $50 million or more that have reported performance through at least Sept. 30 are included. For questions please contact Anibal Arrascue at aarrascue@bloomberg.net

perForMAnCe SnApSHot: MortgAge ArBItrAge FundS

by three-year annualized Returns

FIrM Fund MAnAger InCeptIon dAte SHArpe rAtIo return %

metacapital management lP metacapital mortgage opportunities Fund lP deepak Narula 8/1/2008 4.6 56.6

structured Portfolio management llC structured servicing Holdings lP william mok 2/1/1998 2.6 49.1

midway Group llC/the midway market Neutral Fund llC-a robert sherak 4/1/2001 3.1 44.0

Providence investment management llC Providence mBs offshore Fund ltd russell J Jeffrey 5/1/2004 3.2 41.0

Pine river Capital management lP Pine river Fixed income Fund ltd steve Kuhn 9/1/2008 3.8 40.5

west side advisors llC waF Fund lP Gary lieberman 8/1/2008 5.1 35.2

structured Portfolio management llC sPm opportunity Fund lP william mok 12/29/2006 1.7 30.8

structured Portfolio management llC Parmenides Fund lP william mok 5/30/2003 1.5 30.6

structured Portfolio management llC sPm directional mortgage Prepay Fund ii lP william mok 2/29/2008 1.4 29.0

Gs Gamma management llC Gs Gamma investments ltd Jay Fiacco 7/29/2005 4.1 21.5

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Hedge FundS Added to BlooMBerg tHIS weekThe following hedge funds were added to Bloomberg’s database this week. Access the Hedge Fund Database Portal by typing HFND

<GO> 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 loCAtIon

InCeptIon dAte AdMInIStrAtor

515FUNd Ky BBG0029yl2B1 roB waHl 5:15 Capital management llC Fixed income arb U.s. 7/1/2009 Globeop Financial services llC

BeaCPrt Us BBG002B2dF55 KeViN diVNey Beaconcrest Capital management llC long/short eq U.s. 10/15/2009 Kaufman rossin Fund ser-

vices llC

BVaoPlP Us BBG0029HZCX7 roBert rosNer Buena Vista Fund management llC eq Fdmntl mkt Neut U.s. 2/1/2011 HsBC Bank Usa Na

CsUBFNa id BBG0028F9CZ9 team maNaGed Cairn Capital ltd directional Fixed income U.K. 10/10/2011 Quintillion ltd

BomCome Ky BBG0029PPQX9 team maNaGed delman sa Global macro switzerland 10/3/2011 CaCeis Fastnet suisse sa

GiaPsPd Vi BBG002974sy7 team maNaGed Giada strategic asset manage-ment ltd/British Virgin islands multi-strategy Brit Virgin is 9/30/2011 Helvetic Fund administra-

tion ltd

JP5CtaC Ky BBG0029Hy3y7 team maNaGed JP Fund services sa multi-strategy switzerland 11/11/2011 JP Fund administration Cay-man ltd

leXKtPa Us BBG0029Hs4Q1 timotHy s NasH lexington asset management llC Cta/mgd Futures U.s. 10/1/2006 Fund dynamics

BayoUCB Us BBG0028BJtV4 roBert a Hay omnia trading llC eq statistical arb U.s. 1/1/2004 omnia trading llC

PCtarKt Us BBG00283BG20 roGer m Pearl-maN Pearlman Cta Cta/mgd Futures U.s. 8/1/2011 Pearlman Cta

PerGrsi Ky BBG00299st11 KeViN liem Perspective asset management ltd Global macro Hong Kong 8/31/2011

alter domus alternative asset Fund administration ltd/Hong

Kong

redwaaa Ky BBG0028Z6Pl4 team maNaGed redwell asset management ltd multi-strategy Hong Kong 10/11/2010 standard Chartered Bank Hong Kong ltd

l2oPPoa Us BBG0029l26N8 rUss silVestri skiritai Capital llC long/short eq U.s. 10/1/2009 Conifer securities llC

For Web News on Hedge Managers on Bloomberg click {STNI HEDGEMANAGERSWEB <go>}

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dAte event FeAturIng loCAtIon ContACt / regIStrAtIon

dec. 14, 6:30pm

UJa Federation of New york's wall street dinner

Honoring scott shleifer, tiger Global manage-ment, and Paul taubman, morgan stanley. New york Hilton +1 313-717-1699

kinastl@ujafedny.com

dec. 15 New york Hedge Fund roundtable Panel discussion

art samberg, Pequot Capital; mario Gabelli, GamCo investor.

New york (exact location provided to attendees)

http://newyorkhedgefundroundtable.org

Jan. 10-11 Fra's optimizing Hedge Fund Business operations

"Hear directly from leading fund CFos, Coos and CCos."

New york (exact location provided to attendees)

Kathie eberhard, +1 704-341-2439, keberhard@frallc.com

Jan. 10-12 opal Group's Public Funds summit"issues that are critical to the investment suc-cess of senior public pension fund officers and trustees."

the Phoenician, scotts-dale, ariz. opalgroup.net

Jan. 17-18 9th annual Foundation, endowment & Not for Profit investment summit

Nicolas Papageorgiou, Brockhouse Cooper; sha-ron watkins, sandstone asset management.

the sutton Place, toronto foundationendowment.ca

Jan. 19 HFmweek's U.s. investor outlook for 2012

robert Picard, Jonathan Kanterman, stillwater Capital. Harvard Club, New york hfmweek.com

Jan. 19 and 20

Hedge Fund tax 101 and the K-1 Boot Cap "innovative strategies to maximize tax efficiency." Princeton Club, New

york http://www.frallc.com

Jan. 22-25 Gaim Usa 2012 Keynote speakers John angelo and eric sprott. Boca raton resort & Club, Boca raton, Fla. iirusa.com

Jan. 23 london school of economics sU alter-native investment Conference 2012

Peter Clarke, man Group; randall dillard, lion-gate; Hugh Hendry, eclectica; Christian levett, Clive Capital.

marriott Hotel london Grosvernor square lseaic.com

Jan. 23-24 middle east Hedge Funds' investors summit 2012

Kelsey Biggers, K2 advisors; abdul Hussain, mashreq.

Jumeirah Beach Hotel, dubai menahedgefunds.com

Jan. 24 Bloomberg sovereign debt Conference michael litt, arrowhawk; Bjorn tuypens, Platinum Grove. New museum, New york

elizabeth Gooch, +1 646-834-5014, egooch@bloomberg.net; bloomberglink.com

Jan. 25 argyle executive Forum's 2012 leader-ship in the distressed markets

James dondero, Highland Capital; Jason Fried-man, marathon asset management.

New york (exact location provided to attendees)

argyleforum.com

Jan. 25 investoregulation Financial education's 3rd annual Hedge Fund regulation

stephen Foster, Credit suisse; Joanna Cound, Blackrock.

london (exact location tBd) http://www.investoregulation.com/hfr.html

Jan. 25-27 alphametrix 2012 summitinvitation-only event bringing together an estimated 1,000 investors, allocators and hedge funds.

the Fontainebleau Hotel, miami alphametrix.com

Jan. 26 euroHedge awards 2011 "over 900 managers, investors and other industry professionals."

Grosvenor House Hotel, london hedgefundintelligence.com

Jan. 26 toC Pong Hedge fund ping pong tournament to raise money for Big Brothers Big sisters of New york City.

Vanderbilt Hall at Grand Central terminal, New york

Nicole matesich, +1-646-375-2583http://tocpong.bigsnyc.org/index.html

Jan. 26-27 4th annual Crest Conference on Hedge Funds

academic sessions, debate on the future of the hedge fund industry. Paris crest.fr

Jan. 29-31 mFa Network 2012 Keynote speaker stanley Fink on challenges of building a successful hedge fund.

the Breakers, Palm Beach, Florida http://network.managedfunds.org/2012/

Jan. 30-31 National Family office Forum"speaker faculty" includes richard Griffin, Pritzker Group; mike Kane, Kestrel asset management; steve Braverman, Pathstone; more.

Beverly Hills, California (exact location provided to attendees)

worldrg.com

Jan. 31 Citi's 5th annual asian Capital introduc-tions Conference

"Global and regional hedge fund managers as well as an international cast of hedge fund al-locators."

Jw marriott Hotel, Hong Kong citiconferences.com

Feb. 1 Bloomberg China Conferencewill look at China's economy and the moves the government is taking to manage the challenges of rapid economic growth.

New york academy of sciences

amanda dugan, +1 646-834-5061, adugan@bloomberg.net; bloomberglink.com

CAlendAr To submit an event email hedgebrief@bloomberg.net

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dAte event FeAturIng loCAtIon ContACt / regIStrAtIon

Feb. 16 Bloomberg Portfolio manager mash-upPortfolio managers from 5-6 asset management firms to discuss the biggest issues that will impact markets this year.

New york (exact location to be determined)

Katie lee, +1 646-834-5024, kleee437@bloomberg.net; bloomberglink.com

Feb. 29 asiaHedge Forum 2012 "addresses the strategies, issues and challenges that the region's industry now faces."

Jw marriott Hotel, Hong Kong hedgefundintelligence.com

march 1 14th annual New york Hedge Funds Care open your Heart to the Children Benefit

to honor Joe torre, former New york yankees manager.

Cipriani 42nd street, New york http://www.hedgefundscare.org

march 5-8 13th annual Hedge Funds world middle east

Jeff tarrant, Protege; daniel Booth, saudi aramco; abbas Hashimi, Qatar Family office.

Jumeirah Beach Hotel, dubai terrapinn.com

march 13 Bloomberg Precious metals Conference the rise in gold and silver prices as europe's sover-eign debt crisis escalates.

rubin museum of art, New york bloomberglink.com

march 13-16

37th annual international Futures industry Conference

"Nine hundred of the top names and faces in the industry."

Boca raton resort & Club, Boca raton, Fla. http://www.futuresindustry.org/boca-2012.asp

march 26-27

imN's 10th annual alternative investments summit

walter schindler, sail Capital Partners; Frank Barba-rino, NePC.

Park Hyatt aviara, Carls-bad, California imn.org

march 27-29 Cta world Congress europe tim wong, man aHl; Joseph Burns, Pulse Capital;

Jerome teiletche, lonbard odider.the Grange st. Paul's, london terrapinn.com

march 29 HFmweek's sixth annual european Perfor-mance awards 2012

exclusive event celebrating funds and funds of funds that outperformed their peers.

london (exact location provided to attendees) hfmweek.com

march 30 15th annual Conference of the swiss soci-ety for Financial market research

academic conference. organization was founded by swiss economists in 1986.

siX swiss exchange, Zurich http://www.fmpm.org/conference

april 15-16 Bloomberg doha Conference bloomberglink.com

calendar

Earn 15 CPE CreditsFinancial Research Associates proudly presents

January 10th and 11th, 2012 The Princeton Club - NYC

To Register: Call 800-280-8440 or visit usat www.frallc.com

The Hedge Fund Business Operations Association's Annual Conference:

Optimizing Hedge Fund Business Operations

Get Practical Take-Aways Directly From LeadingFund CFOs, COOs and CCOs!

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Q: caia was founded in 2002, a different era in the world of alternative invest-ments. how has the organization been adapting to changes in the industry?a: The reason we set up CAIA was because we felt there was a need for an internationally-recognized education platform. The alternative investment world keeps evolving so we have a challenge in bringing the curriculum up-to-date. We’ve just updated the Level I curriculum, to be published in March. Level II will be pub-lished in September and that will include new investment strategies like infrastruc-ture. The new curriculum is slightly more empirical and less U.S.-centric.

Q: What kinds of things are your mem-bers requesting?a: We have some of our members, who have gained the CAIA designation, ask-ing for a more advanced curriculum, a potential Level III that would cover things like risk management, volatility, valuation, etc. This is more of a medium- to long-term project. But we do put out continuing education programs, seminars, research, publications.

Q: Where are you seeing most of the membership growth?a: This year, in 2011, it probably won’t surprise you that we’ve had big growth in Asia. Asia grew by 66 percent. In terms of countries it’s been primarily Singa-pore, Hong Kong and Korea, interestingly enough. We launched our CAIA Korea chapter last month. That’s been primarily driven by the opening of the regulatory environment in Korea. We also have mem-bers in Japan and India, where I’d like to develop our activities.

Q: how about south america?a: We’ve been to Brazil where we have

seen some interest. Unless you make a push in a country and you’re seen to be active in the country, probably people aren’t going to come to you. We get people to trickle. We have candidates in 110 countries. In Latin America, there are some from Peru, Chile, Argentina, Brazil, Mexico. We haven’t made a focus of South America at this stage.

Q: do you think you will?a: We’re still a young organization but yes, I think we will, definitely.

Q: you have 15 offices around the world. Which are the newest besides korea?a: We also launched Luxembourg and Los Angeles this year.

Q: What about next year?a: Next year we’re looking at potentially Ja-pan, the Netherlands, Philadelphia, Dallas and Houston. We may also split Switzer-land into two chapters, Geneva and Zurich.

Q: how is caia funded?a: It’s a U.S. not-for-profit organization. It’s purely funded by revenue from candidates and members. We don’t run commercial events or activities. People register for the exam, they study for the exam, they take the exam and they become members.

Q: Will you consider branching out into any other areas?a: Not at this stage. We’re very focused on our role of education. We launched the CAIA foundation this year in order to

raise funds from large financial institutions and partners to finance scholarships to the CAIA program. The first of these was a partnership with 100 Women in Hedge Funds group, with the scholarships funded by PAAMCO. I’m talking to other groups to fund future programs.

Q: is there an annual meeting?a: We’ve shied away from organizing an annual conference, primarily because our membership is so spread around the world. Next year is our 10th anniversary year so we’re going to run some flagship events around the world to try and bring people together. We just held our annual leader-ship award dinner here in New York, where we honored Oak Hill Investment Manage-ment Managing Partner Mark Anson with the CAIA Leadership Award for Excellence. We’re looking at creating a research chal-lenge working with our academic partners. We don’t have a big annual conference as such. I think there’s enough such events.

Q: Which is exactly why having a true institutional-quality one is necessary!a: Well, we are looking. There’s still a lot to be done in the area of research and alternatives. It’s quite difficult to get academics fired up to do research. In the current economic environment there’s not much funding. The banks historically used to fund research papers and there hasn’t been much funding coming from the big banks for some time now. We would like to encourage academics to provide good re-search in alternative investments, probably through the CAIA foundation.

florence lombard, chief executive officer of the Chartered Alternative Investment Analyst Association, spoke to Bloomberg’s Nathaniel Baker about the latest develop-ments in her organization and how CAIA is adapting to changes in the alternative investment industry.

SpotlIgHt

CAIA Ceo lombard on keeping pace with Changes in the Alternative Investment Industry

Hometown: Paris

residence: South Hadley, Massachusetts

professional Background: Twenty-five years in hedge funds and alternative

investments, 18 of which were spent running the Alternative Investment Man-

agement Association. Co-founder of CAIA.

Family: Son, daughter-in-law and grandson in Australia.

Favorite vacation Spots: My farmhouse in France, the Gold Coast in Australia.

Favorite restaurants: UMU in London. River Cafe in New York for the view at sunset.

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