Alternative investments

Pointing to illiquidity and poor fair valuation conditions, two ranking Congressmen have asked Securities and Exchange Commission Chairman Christopher Cox to cut mutual fund portfolio managers a break on redemptions of auction-rate securities.

Absolute-return mutual funds that seek to provide investors with positive returns whether equity markets are rising or falling, are growing in rapid numbers in today's volatile market and hoping to attract a loyal investor following.

Saudi Arabia has launched its first sovereign-wealth fund, aimed at maximizing long-term rates of return.

Rydex Investments has launched a fund of funds that offers exposure to the alternatives marketplace.

New Fund

The Charles Schwab Foundation will sponsor awards for the National Financial Literacy Challenge, a 35-question test of personal finance for high school students in the U.S.

WASHINGTON - The Office of the Comptroller of the Currency's $144 million enforcement order against Wachovia Corp. is likely to force banks to step up oversight of telemarketing customers.

Rick Lazio, head of government relations at JPMorgan Chase since 2004 and one-time candidate for New York Senator, is taking on a new role. He is now a managing director in the company’s asset management operations.

BoA Hires Former Fido Marketing EVP Huang

The Securities and Exchange Commission has announced the distribution of $30.6 million to more than 250,000 investors affected by market timing by RS Investments.

Randy Takian, head of strategy and development for Morgan Stanley’s hedge fund and alternative investment products, will head its investment management unit’s retail and intermediary business, according to Dow Jones.

Fines Continue to be Levied on Fund Companies for Market Timing & Late Trading, With a Renewed Focus on U.K. Orders

After failing to redeem $580 million of the shares of three of its tax-free closed-end funds, Eaton Vance has successfully obtained private financing for the preferred shares in question.

While hedge fund activity in commodities is contributing to the surge of oil to record highs, long-term, fundamental supply constraints are the main culprit.

John Paulson, founder of the hedge fund Paulson & Company, made an unprecedented $3.7 billion last year by betting against subprime mortgages and the financial products that held them.

NEW YORK - While the majority of economists now believe the U.S. is in a recession, market optimists are already looking ahead to the rebound.

NEW YORK - The financial sector took a beating in the first quarter, but financial "bottom feeders" will speed its recovery, possibly ahead of the rest of the market, experts said here at a gathering of researchers and data providers.

Bank of America has named Claire Huang as head of marketing for its Global Wealth & Investment Management division.

AIG Investments is expanding its Global Business Development team in the U.S. and Europe with the addition of three executive positions.

Citigroup has hired Thomas Flexner as global head of real estate. Flexner comes to Citi from Bear Stearns, where he recently served as vice chairman overseeing commercial real estate and the financial buyers group.