Martha Gendell ?

I have done this site especially for Martha Gendell
in order to visit thishousewillexist.org

Martha is wife of Jeffrey Gendell (began work in Smith Barney's financal department.
Started hedge fund Tontine Partners in 1997)


Sorry for my poor english translation.


Hedge funds (. Engl. hedge funds, from English to hedge [h?d?] "secure";. Rarely SAIV - sophisticated alternative investment vehicle, English as for sophisticated / sophisticated alternative investment vehicles) are a special type of investment funds managed by a speculative investment strategy are marked. Hedge funds offer the opportunity for very high returns and contribute according to a high risk.

Typical of hedge funds is the use of derivatives and short sales. This was also the misleading name, because these instruments except to speculate and to hedge (hedging) can be used. Moreover, hedge funds try to leverage a higher return on equity to generate (leverage or leverage).

Most hedge funds are domiciled in offshore financial centers. At the end of 2006, hedge funds worldwide is worth around 1.6 trillion U.S. dollars. Well-known hedge funds, the Quantum Fund investment banker George Soros and the fund Long-Term Capital Management, which collapsed 1998th

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The first hedge fund was founded by Alfred Winslow Jones in 1949. Jones sold short shares to acquire them later at a lower price level again. The proceeds of the short sale, he purchased other shares in the expectation that these shares rise in price. He was simultaneously inventing the first strategy for hedge funds (long-short). Meets the expectation that the price of shares purchased in the ratio the better (or less negative) developed as the price of the shorted shares shows a profit regardless of whether the overall market represented by a broad stock market index rises or falls. This is also a key motive of investors in hedge funds is clear. You want to earn a high income, regardless of the recurring ups and downs of the stock markets. For the long-short strategy, it is necessary to find stocks that fall within a specific time horizon in the price and to identify other stocks that will rise in this period. The hedge fund manager must therefore both the price of the selected shares properly assess and a time for these transactions choose. According to the hedge-fund manager uses include addition to traditional business valuation (assessment of Über-/Unterbewertung of shares) and quantitative-mathematical methods and technical analysis.

Traditional hedge funds were never mutual funds, as the term is understood in Germany according to the Investment Act, even today they are placed primarily for institutional investors.

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Developments

The sector of hedge funds in recent years was one of the fastest growing investment products. The number of active hedge funds worldwide, however, can only be estimated, as well as the invested assets in them. End of 2006, created some 1.5 trillion in hedge funds. The investment volume was up to about a third compared to last year. The number of funds increased from the end of 2005 now at the end of 2006 by about 5% to 9,000. [1]

In March 2009, the data provider Hedge Fund Research (HFR), that were resolved by the global financial crisis in 2008, a total of 1471 hedge funds and around 15 percent of the total hedge fund market as well as some funds were affected. [2] known by name are: Drake Management, an asset management staff and former Black Rock Peloton Partners, a company of former Goldman Sachs bankers. Assets under management have fallen to 2008 by 37 percent to 1.2 trillion, according to Morgan Stanley.
Legal domicile of the fund

Registered in most of the funds mainly in an offshore financial center. The reasons for this are a fiscal nature, are the other but also in the lower constraints of the respective capital market legislation, which relates to the fund allowed the financial instruments. In January 2006, 55% of hedge funds registered offshore. By far out of place as an offshore hedge fund industry, the Cayman Islands (63% of the offshore fund of funds), followed by the British Virgin Islands (13%) and Bermuda (11%). In Europe, there are the Channel Islands or Gibraltar, but also in terms of capital market legislation more liberal states such as Luxembourg, Ireland, Liechtenstein and Monaco, but they take compared with the above-mentioned U.S. offshore areas along with about 10% is rather limited . The largest onshore place is again the United States with 48% of onshore assets. Often the seat is located in or near New York, as in Delaware. For funds focusing on Europe is the leading Onshoreplatz Ireland with 7% of Onshorefonds.

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Fund Manager

The success of a hedge fund is highly dependent on the skill of the fund manager and its use of the financial mathematics / econometric models, such as the Black-Scholes model. The approach of the fund manager is like by the high degree of risk and speculation of a bet. The borrowing of funds up to a multiple of equity is common to the yield increases more (leverage effect). Of fund managers are expected to participate in the Fund and, where appropriate, personally liable. In return, the managers are paid very well, it is often spoken of the 2 / 20 rule. These are understood to 2% management fee (the fund's assets) and 20% profit sharing. [3]

The variety of hedge fund strategies significantly increased profit opportunities as well as risks of loss are given. These strategies determine the tactics of the fund manager, which he speculates on the future rising or falling stock prices. The fund manager has a high degree of freedom regarding the selection of investments.
Physical seat of the Fund Manager

The U.S. is for hedge fund managers still by far the leading plant in place: In terms of assets under management U.S. managers 63% of the market. In 2002, there were still 83%. The major hub for hedge funds is New York, where, according to calculations by International Financial Services in 2006 36% of global assets managed. 2002, there were still 45%. The decrease is mainly due to the improvement of the position of London, which is now the clear number 2 in the hedge fund industry. The proportion of London-based hedge fund managers rose in the same period, namely from 10% to 21% significantly. Europe came to a total of 24%. Asia's share increased from 5% to 8%.

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Hedge funds should in theory the assets at risk by hedging (English: Harnessing fence to hedge =) secure, but have to do in its present form with too little protection.

The first hedge fund strategy (market neutral strategy) is from Alfred Winslow Jones (1900-1989) and should be a tool for protection against adversity in interest and currency rate risk. Jones idea was to benefit not only in boom times to interest rate and currency markets but in falling interest rate and exchange rate gains were achieved. Jones reasoned thus one of the first hedge fund strategies, namely, debt (leverage, margin trading) and to include short selling (short selling) for the purchase and sale of currencies. He sold borrowed shares and speculated to be able to buy them back more cheaply before the end of the loan period.

New strategies (global macro strategy) was developed by George Soros and Jim Rogers with their Quantum Fund hedge fund. By new financial instruments, they speculated in new areas, such as the foreign exchange market, interest rates, commodity and equity markets.

Since the first hedge fund strategy by Jones, hedge fund strategies have been developed steadily and have increased markedly. Hedge funds are among the "Alternative Investments" as an alternative form. Hedge funds use the large number of trade items and trade strategies. Hedge funds can invest differently than mutual funds, heavily in derivatives. Hedge funds use include highly combinations of long (long position) and sales plans (short selling) and leverage. By borrowing creates a "multiplier effect" (leverage). Debt is included because it is expected that the return on an investment can be increased. The functioning of the leverage effect is based on a lower interest rate debt as the income of the expected rate of return. The leverage effect can be built out of debt by depositing a fraction of the exposure to exchange-traded futures (futures), in other hedge fund strategies only through the music. A low debt use is a high volume of the traded underlying asset (underlying) to. A high use of leverage with high leverage is common in market neutral arbitrage and global macro strategies.

Hedge funds are now independent investment instruments with very different strategies and risk profiles. They all share the aspiration in both rising and falling markets gains achieved. Hedge fund managers rely on a number of investment styles and techniques, including financial derivatives, short selling of securities and arbitrage techniques.
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As offshore projects are less regulated hedge funds and their investment decisions, less observable, which may mislead that fund managers manipulate the indicated rates of return. Bollen and Pool (2009) have investigated this hypothesis and showed statistically that the fund managers can reduce losses, especially in the valuation of illiquid assets, even if the profits are very weak. This is consistent with Kahneman and Tversky asserted by increased risk aversion of investors. [4]

Hedge Funds in Germany
Hedge fund strategies

In Germany, by 2004, hedge funds are not generally admitted to public trading. A relaxation was performed with the Investment Modernization Act, on 1 January 2004, in force and now allows the distribution of "funds with additional risks under certain conditions. These have little in common with the large international hedge funds, they belong to the group of investment funds and investment instruments. You may use the instruments of the short sale (short selling) and the use of borrowing (leverage effect). Investments in such funds may not be distributed publicly, but only in the context of so-called private placement, such as for deposits by institutional investors in Germany.

In contrast, the contribution in funds of hedge funds for private investors is permitted since 2004. Attach the provider of a hedge fund may not be related to its sales brochures warning those on cigarette packets: "The Federal Minister of Finance warns: This mutual fund investors must be willing and able to sustain losses on capital employed up to a total loss," The investment community has so far only a very small scale of the opportunity made to launch hedge funds in Germany. However, the market for certificates to foreign hedge funds has grown rapidly (see chart).

German hedge funds are subject to supervision by the Federal Financial Supervisory Authority (BaFin), their debt-use is limited. It is therefore more likely to mutual funds with greater freedom than hedge funds in the original sense.

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Hedge funds in other countries

Anglo-Saxon hedge funds are companies and correspond in some respects more like a closed fund. Investors buy shares in these companies. Here are the right shape is usually that of a German KG (limited partnerships, LP, or limited liability partnership, LLP) or an LLC (limited liability company). There are in the LLP one or more hedge fund managers who are liable with their personal and business assets, and investors buy the shares of these companies. Often, the official residence of such hedge funds, a tax haven (75% in the Cayman Islands [5]), and the manager sits in a financial center (such as London, New York).
Regulation of EU projects on hedge funds

In October 2010, the EU finance ministers agree on more stringent regulatory requirements for hedge funds and private equity firms. [6]
Regulatory plans of the G8 and G-20 countries to hedge funds

At a meeting of G7 finance ministers in Essen in February 2007 agreed on a joint declaration stating that you want to control the hedge fund in the future more accurately. The aim of the G-7 is to identify potential risks in the hedge fund activity and thus prevent global financial crises and contagion effects on fund failures. In an interview, according to agency information is also a voluntary code of conduct and a form of approval for the funds by independent rating agencies.

At the G8 Summit (G7 countries and Russia) in June 2007 in Heiligendamm, however, no suggestions were made regarding an intended commitment of the industry. The resistance against this came from the United States and Great Britain, the countries in which acts of the majority of the funds. The participating Heads of State or Government urged the hedge fund industry, however, improve the rules of conduct for managers themselves while reaffirming once more the already discussed by finance ministers of issues.

At a meeting of top representatives of the G-20 countries (plus the Netherlands and Spain) in Washington on 15 November 2008, decided greater regulation of speculative hedge funds.

On 14 March 2009 agreed the finance ministers of G-20 countries in Horsham on a registration requirement for the fund is planned to introduce and to control the world's 100 largest hedge funds. The investors here are the U.S. regulatory Securities and Exchange Commission (SEC) or the UK Financial Services Authority (FSA) provide insight into their budgets.

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Adjustment in the U.S.

The U.S. Securities and Exchange Commission regulates hedge funds in the U.S.. To this end it has adopted rules for the borrowing of funds and short selling. Because of the regulations can be many hedge funds do not register, so they are not authorized for public distribution. However, access is for "qualified" investors (with more than $ 200,000 annual income or more than $ 5 million assets) is possible. Each hedge fund, which trades as "Limited Partnership LP is on 499" partner "is limited. The SEC has adopted over the 2004 rules for hedge funds [7], managing more than $ 25 million and are open to new investors. Apply the rules since 1 February 2006 (the rules are linked to criminal / authorities).

After previously lacking publication requirements, look under the pressure of competing American hedge funds in other ways to build trust, for example, with certification to ISO 9000, as it has the GAM Multi-Manager Hedge Fund did.

On 13 November 2008, quoted Manager of the five largest hedge fund before a congressional committee;. This is to find out whether hedge funds pose a risk to the financial system [8] George Soros, Philip Falcone, John Paulson, James Simons, Kenneth Griffin were as a witness for the hedge fund industry is one. They have agreed to tighter control and the closure of disproportionate tax loopholes. [9]
Regulation in the United Kingdom

In the UK, subject to the managers of hedge funds the authority of the Financial Services Authority, the British counterpart to the BaFin.
Regulation in Liechtenstein

Liechtenstein is in the regulation of hedge funds by the FMA Financial Market Authority Liechtenstein.

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