Hinde Capital Ltd.’s hedge fund gained 44 percent this year after selling its holdings in the biggest mining companies to buy gold.
The Hinde Gold Fund made the switch in October 2008, having previously held equal weightings in equities and gold, according to Ben Davies, co-founder of the fund. He declined to say which stocks the fund had sold.
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A New York-based hedge fund has settled charges that it misled the Chicago Board of Trade, the U.S. Commodity Futures Trading Commission said.
EMF Financial Products has agreed to pay $4 million to settle the CFTC allegations. The regulator had accused it of hiding the size of its position in U.S. Treasury futures four years ago. While the hedge fund controlled almost $12 billion in contracts, it allegedly told the CBOT—which was conducting market surveillance in advance of the expiration of the September 2005 contract—that it had a cash position of just $200 million.
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Members Equity Tuesday priced A$783 million in residential mortgage backed securities, its third such issue in recent months without any government support.
The offer from Members Equity is the first in Australia to sell investors a class of redeemable and convertible bonds which can be redeemed at face value or converted to one of the other bond tranches.
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Banks are starting to cut prices at their prime brokerages as they fight to pick up hedge-fund clients, a segment they had grown wary of during the financial crisis.
The wariness was perhaps best summed up by Bank of America Chief Executive Kenneth Lewis, who said last year that prime broking was about as sensible an activity to be involved in as walking onto the fast lane of a highway to pick up a small coin. Morgan Stanley, even spoke publicly about cutting back in prime broking, a business that consumes significant amounts of a bank's balance sheet.
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BMO Capital Markets, the investment- banking business of Bank of Montreal, hired a team and bought assets from Paloma Securities LLC to expand its securities- lending business.
Bank of Montreal added 42 people from the lending unit of the Greenwich, Connecticut-based hedge fund, the Toronto-based bank said today.
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