Hedge funds

WASHINGTON—The Securities and Exchange Commission is set to issue new rules on the use of derivatives in mutual and exchange-traded funds, Andrew “Buddy” Donohue, director of the division of investment management, told executives Friday at the Investment Company Institute’s General Membership Meeting.

Connecticut's financial hub is struggling to rebound in the wake of the recession, but planners hope the area's relatively low real estate rates and high vacancies could attract jobs back to the area.

Two veterans of the hedge fund world are touting a product they say lets advisers focus less on investment decision-making and more on business development and client service.

Investor confidence among millionaires rose to its highest level in more than two years as optimism about the economy increased.

WASHINGTON — Republicans, as promised, banded together to block Senate debate on financial regulatory reform legislation Monday, picking up opposition from one Democrat, Sen. Ben Nelson of Nebraska.

The Hong Kong Securities and Futures Commission said Monday it is seeking court orders to issue a trading ban against New York-based Tiger Asia hedge fund over alleged insider trading and market manipulation.

The civil suit filed against Goldman Sachs by the Securities & Exchange Commission alleging securities fraud could strengthen the argument to establish a universal fiduciary standard, according to legal experts.

The U.K.’s Financial Services Authority is finally cracking down on how prime brokers protect client assets.

Bernie Madoff's legacy is still influencing the regulatory community. Fraud is as much a part of Wall Street's history as the closing bell on the New York Stock Exchange, but the Securities and Exchange Commission's recent amendments to its custody rule are intended to make life trickier for any future Madoff.

The Securities and Exchange Commission on Wednesday proposed tracking large blocks of trades by mutual funds, hedge funds, private equity firms and other large institutional investors. The SEC defines a large trader as those that trade $20 million or more in securities in a day, or 20 million shares or $200 million during any calendar month.

As sentiment among wealth managers shifts, more capital has become available and companies right-size, banks, trust companies, wealth managers, and bank brokerages that are in a strong position to expand into a new market and acquire new units, will do so. But it is also the moment when companies without the capital—and stability—will get left behind.

Citi Alternative Investment LLC has sold three hedge fund business units—a fund-of-hedge funds, hedge fund seeding and hedge fund advisory businesses with a collective $4.2 billion of assets under management—to Skybridge Capital, a New York-based hedge fund incubator. The price of the deal was not disclosed.

Dreyfus has launched the Dreyfus Dynamic Alternatives Fund, a mutual fund designed to provide exposure to a range of hedge fund returns.

When it comes to making investment decisions, the wealthy “seem very self confident and will turn to their peers before turning to advisers,” according to the Knight Frank/Citi Private Bank’s Global Wealth Report 2010.

WASHINGTON — President Obama's successful fight to pass healthcare reform has given a bill to revamp the financial system a dramatic boost, lawmakers from both parties said Wednesday.

Pending hedge fund regulations in the European Union are “protectionist [and] discriminate against U.S. firms and activities,” Sen. Charles Schumer (D-N.Y.) said in a letter to Treasury Secretary Timothy Geithner.

Jackson National Life Insurance announced it achieved record sales and deposits of $15.2 billion and record profit of $670 million in 2009. Sales and deposits were 8% higher than 2008, and net income increased from a net loss of $1 billion in 2008, primarily due to the positive impact of movement in non-operating derivative holdings and hedging practices for its annuities.

AlphaOne Capital Partners, a hedge fund and alternative investments boutique founded by former Gartmore CEO Paul J. Hondros, has selected SEI to provide a complete outsourcing solution, including a full range middle- and back-office services.

The Securities and Exchange Commission is expanding its New York office staff of 360 people by 33, or nearly 9%, in an effort to better regulate hedge funds and brokerages. The SEC will hire 18 additional people in enforcement and 15 in examinations.

Citigroup has hired Sanjiv Sawhney as global head of fund services, a new position. He was previously head of fund services operations at JP Morgan and is returning to Citi, where he began his career and served for 15 years.