PIOnline.com reports Pequot Capital Management, with $6.5 billion under management in health care and technology hedge funds, reached a preliminary agreement to acquire Willow Creek Capital Management, which runs $600 million in long-short small-cap hedge funds. Full article: Source

From the FT: This morning, in London, David Blood, former chief executive of Goldman Sachs Asset Management, and Al Gore (news - web sites), the former US presidential hopeful, will launch their new firm, Generation Investment Management. The boutique will invest in long-only global equities - but with a difference.

Mr Blood, who will be managing partner, explains that Generation will integrate traditional equity analysis with sustainability research. Mr Blood rejects any suggestion that the firm is concerned with "green" investing. Sustainability is distinct, he says, because it combines the principles of economic growth, environmental stewardship and social accountability. The approach, he adds earnestly, is primarily about delivering superior returns to clients. Source

(CBS.MW) The exchange-traded fund business is dominated by three giants: Barclays Global Investors; State Street Global Advisors and The Vanguard Group, but a newly assembled team of all-star investors is taking on the big boys: Index Development Partners is developing new stock indexes as the basis for future ETFs. No products have yet been launched, but the firm's share price rocketed to $1.50 from 4 cents on Nov. 18 after news that hedge fund icon Michael Steinhardt had acquired 65 percent of the company. Friday, shares of Index Development Partners closed at 80 cents.

In addition to Steinhardt, the company's directors and investors include other prominent figures, notably James D. Robinson IV, co-founder of private equity firm RRE Ventures and a former American Express chairman and CEO. Wharton professor Jeremy Siegel, author of the influential "Stocks for the Long Run," is a senior investment strategy advisor. Steinhardt said the firm intends to introduce what he called "performance indexes" with the potential to provide better long-term returns than existing indexes. He declined to describe the specifics of the planned ETFs, only promising that their "stock selection and weighting schemes" would be unique to the market. Full article: Source

Gottex is pleased to announce that the rating of the Gottex Market Neutral Fund Class B has been reconfirmed by Allenbridge Hedgeinfo as an "A", the highest rating on the Allenbridge rating scale and that Allenbridge now considers the Gottex Market Neutral Fund as a "benchmark fund".

Jacob H Schmidt, director of Global Hedge Fund Rating & Research at Allenbridge said - "the firm has grown from an initially small player to a medium sized player (2001 -2003) and is now one of the major firms in the industry (2003 - 2004). Since our last rating update Gottex has increased the asset inflow significantly, has more than doubled the team and changed the structure of the firm to an equity ownership structure. We therefore confirm our rating of the Gottex Market Neutral Fund Class B as "A", the highest rating in our scale and consider Gottex Market Neutral Fund now a "benchmark fund" in the hedge fund of fund space."

In their updated report, Allenbridge Hedgeinfo further highlights that Gottex continues to generate superior risk adjusted returns and that the portfolio is very well diversified. Allenbridge Hedgeinfo stressed that they were comfortable with the developments and the general set-up of the firm and felt that Gottex had become one of the most important players in the industry. Founded in 1985 Allenbridge Group plc is an investment-consulting firm which specializes in fund manager research and appraisal. No online Source

Mr. Denis de Pentheny O’Kelly CEO of Finlab SA stated that “Our objective with this latest release of PackHedge was to introduce an array of new features to enhance the capability and productivity of the investment professional. This new release delivers in 4 major areas of functionality which includes a new Fund of Funds Portfolio Module allowing clients to build, track and analyse, the historical evolution of funds of funds balance sheets, cash, positions, and number of shares. The addition of the Omega Statistic and charts to our current set of comprehensive analysis tools. An expansion and improvement of our Customised Reporting capabilities so that our clients can rapidly deliver multi-page reports to their respective audiences in their chosen style and format. We have also enhanced our Qualitative Information Management Tools which includes the facility for clients to attach MS Outlook and or Windows Explorer Folders to all associated e-mails and contents to funds, funds of funds, companies, people and all associated objects." Source

Dow Jones / Morningstar write House Democrat John Dingell is asking the Federal Energy Regulatory Commission and the Commodity Futures Trading Commission for a report on the impact hedge funds are having on volatility in the natural gas market.The Michigan lawmaker, who is ranking member of the House Committee on Energy and Commerce, said the request grew out of a complaint he received from Stephen Etsler, the head of Stand Energy Corp., an energy company based out of Ohio.

"Mr. Etsler complains that many hedge funds are trading speculatively, never intending to take delivery of the gas," Dingell said in a letter he sent to the two agencies Thursday. "This has allegedly produced wild swings in the price of gas to the detriment of traditional gas users." Source

From the FT: The eyes of the investment banking world will tomorrow be on Zurich. There, Brady Dougan, the recently installed chief executive of Credit Suisse First Boston, will reveal his plan to restore the fortunes of a bank that some critics believe will never regain its position at Wall Street's top table. Full article: Source

Robert J. McWhirter, F.C.S.I., CFA, President and Portfolio Manager of Selective Asset Management Inc. ("SAMI"), today announced the launch of three hedge funds he and his team will manage: the long biased, short biased and long/short biased hedge funds will invest across all markets and sectors. Selective Asset Management Inc. was founded by Robert J. McWhirter, F.C.S.I., CFA. Mr. McWhirter has more than 25 years experience in the securities industry and is a top-ranked money manager. Funds managed by Mr. McWhirter are ranked with high ratings from Fundata.com, Globefund.com and Morningstar.ca. Source

From IFIGlobal.com: Mercer Investment Consulting has noted a strong increase in the usage of hedge funds by pension plans in Spain.According to Luís Vadillo,a consultant with Mercer,hedge funds accounted for 2.3%of pension assets in that country at the end of 2003.By the end of September this year,the corresponding figure had grown to 2.6%.Half of Spain ’s leading pension plans are now investing in hedge funds. Five years ago,investment in hedge funds by Spanish institutions and pension plans was minimal. Full article: Source

MAR/Hedge reports London-based Absolute Capital Management Ltd is set to list on the London Stock Exchange's Alternative Investment Market on a date still to be determined. The flotation will make Absolute Capital only the second hedge fund manager to list on AIM, following RAB Capital's debut on March 16 this year. Absolute Capital, which manages more than E300 million ($399 million) in three hedge funds, aims to double that by the end of next year, and to hit $1 billion by December 2006. Full article: Source

From the Telegraph: Hedge funds' ability to wreak havoc and merry mayhem in takeover bids could be checked early next year. They tend to use so-called derivative instruments, especially contracts for difference or CFDs, to acquire an interest in a company. And for many of them, the great attraction of holding CFDs is that they are invisible to the market. However, the Takeover Panel, the City watchdog, plans to reduce the scope of CFD holders to make mischief and moolah in secret. In January, it will announce its intention to force them to disclose their holdings in precisely the same way as holders of ordinary shares do. Source

From the London Times: Wharton Asset Management, the low-profile London firm managing GBP 2.4bln, also shows how the hedge-fund world is changing. The old view is that they take other people’s money, do a hot job managing it, and charge high performance-related fees.

Gradually, however, the walls separating different kinds of fund managers are crumbling. Hedge-fund managers are now muscling in on traditional managers of pension funds and other pools of capital. At the same time, stocks, bonds and other investment products are growing more complex, especially at the sophisticated end of the spectrum where investments such as securitisation packages are “structured”. “If you take hedging and marry it with securitisation, what you get is us,” said Salem. Source

From PIOnline.com: Convergence in the alternative investment arena is likely to increase over the next 18 to 36 months, investment bankers at Freeman & Co. predict in a new report. The company’s analysts think alternatives firms will expand into other alternative asset classes — for example, hedge funds adding private equity funds, private equity adding real estate funds and mezzanine funds starting collateralized debt strategies. They also predict that firms will add capabilities through mergers, joint ventures, product expansions and team lift-outs, and that managers in every alternative asset class will start investing in new kinds of securities — most notably, the push by hedge funds into private equity. Full article: Source

The London Times writes Western banks are waiting to see if the Chinese Government will act to limit their exposure to the financial scandal in Singapore in a which a company controlled by Beijing has lost $550 million on oil derivatives. Although no-one concerned will comment formally, the oil futures trading scandal is thought to have left a number of Western investment banks nursing losses that are not covered by hedging.

One source put these at $160 million, split between Société Générale and Banque National de Paris of France, Goldman Sachs, Standard Chartered and Morgan Stanley. A 15 per cent tranche of shares in the Singapore offshoot was sold by Beijing through Deutsche Bank in October for $120 million, which immediately resold the stake to 50 investors, including a number of hedge funds and the majority was sold swiftly to investors. Some of these are now questioning how much the company knew about the losses when the shares were sold. Deutsche Bank said: “The transaction was conducted entirely in accordance with normal market practice.” Deutsche Bank on Sunday defended its role in the collapse of a Chinese government-controlled company in Singapore early last week, as investigators continued to study what went wrong. Full article: Source

From the HK Standard: The strong euro has underpinned this year's currency strategies, helping investors scoop generous returns at the expense of the tumbling United States dollar. But as funds plan for 2005, many will seek new themes, and Asian currencies - with relatively low appreciation against the US dollar - could experience big inflows as a result.

“The euro has appreciated by around 50 per cent since 2002, whereas Asian currencies are stronger only by around eight percentage points,” JPMorgan Chase head of forex options Erik Herzfeld said in Singapore. “That's one of the reasons that funds are looking at Asia now.” Full article: Source

Citigroup exec denies unit is for sale
Citigroup Inc. reacted to a Friday report that it may be considering a sale of its asset management unit by saying it remains committed to the business and is even sweetening compensation incentives for its portfolio managers and analysts. The New York Times on Friday said Citigroup has been weighing strategic options for its asset management business, which in the year's first nine months added just 2.2 percent to the company's overall profits. Options include an internal revamping, a sale or -- least likely -- a spin-off, the Times said. (CBS.MW)

Research and Markets publishes study on energy trading hedge funds
Over 200 hedge funds are involved in the energy trading world today and that the funds, combined with the activities of the proprietary trading desks of investment banks, which operate just like hedge funds, are having an impact on both prices and price volatilities. Today's financial energy markets are the culmination of 26 years of energy trading but on a notional basis, only $2 trillion of paper energy is being traded compared to $4 trillion of physical business. Price of the stuy is EUR 10,700.

ProFunds Plans Long, Short Dollar Funds
ProFunds has filed to launch the Long Dollar ProFund and Short Dollar ProFund. By rolling out the offerings, the Bethesda, Md.-based firm is hedging its bets about whether the U.S. dollar will continue to plummet in value, or if it will come back (Fundmarketing.com)

UK Life assurers welcome 50-year bond plan
The plan from the chancellor, to issue bonds with very long maturities to help to solve Britain's looming pensions crisis was welcomed by life assurers yesterday. (The Guardian )

Chinese authorities to harden tactics after China Aviation Oil lost US$550m
Chinese government is likely to tighten supervision of domestic companies' trading futures on overseas markets after the China Aviation Oil (Singapore) Corp lost US$550 million from speculative trading, company managers and industry experts said. They said the Chinese regulators would become tougher in forbidding qualified domestic companies from carrying out speculative trading on overseas futures markets, China Daily reported Friday

German private bank Merck Fink launches hedge FOF
German private bank Merck Fink launches hedge FOF with Feri Trust and Deutsche Bank as advisor. Regulator BAFin has approved public distribution of the Luxemburg domiciled FOF. The fund has a minimum investment of EUR 1000.

Martin Currie denies bid talk
Martin Currie, the Edinburgh fund manager, moved swiftly last night to quash rumours that its business was up for sale. Ross Leckie, director of communications, said speculation that it was expecting to become a target for a GBP million bid was "utter rubbish". (The Scotsman) No online Source

GAIM USA 2005
January 18-20, 2005 * Boca Raton Resort * Boca Raton, FL
The Largest Gathering of Hedge Funds and their Investors in the USA!

• A speaker faculty and attendee list comprising a “who’s who” of hedge fund investing - an unrivalled forum for discovering critical information on the industry and its investment opportunities in 2005
• Active participation of leading institutional investors from North America, Asia & Europe
• Ideal networking opportunities in the exclusive and comfortable surroundings of the Boca Raton Resort & Club
• The seniority and level of expertise of the GAIM USA speaker faculty surpasses that of any other alternative industry event in the USA

Over 500 Senior Industry Leaders Attended in 2004! Register by November 15th and save $600:

To Register or for more information, visit www.gaimusa.com
Please mention priority code: XUAMB

Heightened competition and increased scrutiny by both investors and regulators make it imperative that alternative investment specialists have a way to differentiate themselves The Chartered Alternative Investment Analyst (sm) designation is the only global professional standard for the AI industry and is becoming its hallmark of excellence. Earning the CAIA Charter certifies one’s mastery of the concepts, tools and practices essential for understanding and managing alternative investments. Embark on the CAIA certification programme with EDHEC AI Education now and:

• Enjoy the benefits of an independent certification of your skills
• Guarantee a high level of competence to your customers
• Set yourself apart from your competitors
• Develop an Eagle's-Eye View of the industry
• Upgrade your knowledge base with the latest advances of applied research
• Learn more about industry’s best practices in your field.
• Benefit from a sounder understanding of the various alternative segments
• Demonstrate your dedication to the industry and your commitment to high professional standards

The two CAIA exams can be taken six months apart, giving you the opportunity of a rapid return on your educational investment. As the Chartered Alternative Investment Analyst Association’s exclusive official provider of CAIA exam preparatory courses for Europe, EDHEC AI Education offers solutions allowing you to take the CAIA tests with the best chance of success. Designed and delivered by experienced professionals with proven alternative investment expertise, our intensive review seminars for the CAIA February 2005 exams are now available in London, Geneva and Paris. Registrations for the February 2005 exam session are open until December 15.

More: www.edhec-risk.com/AIeducation/CAIA email: AIeducation@edhec.edu

European Hedge Fund Investment Forum plus Awards 2004 Dinner
London, 8 & 9 December 2004

The European Hedge Fund Investment Forum provides diverse industry perspectives on hedge fund investment strategies and key insights into developments in risk measurement and management. The event programme has been designed for investors in fund of funds and hedge funds. All institutional investors and family offices will be able to attend for free.

Our keynote addresses provide a unique insight into the thinking of the decision makers in the institutional investment and hedge fund worlds:

• Timothy P. Cahill, State Treasurer and Receiver General, MASSACHUSETTS STATE TREASURY
• Ramos Koss, Head of Alternative Investments and Mutual Funds, CREDIT SUISSE
• Lindsay P. Tomlinson, Chairman, INVESTMENT MANAGEMENT ASSOCIATION
• Dan Waters, Director of Retail Policy and Asset Management Sector Leader, FINANCIAL SERVICES AUTHORITY

Examine industry perspectives on key issues, including:

• Regulatory updates and their impact on the industry: US and EU experiences
• Challenges and opportunities of investing in hedge funds
• Choosing a fund of funds to invest in hedge funds
• Creating an internal independent risk analysis of funds framework
• Effectively selecting and monitoring managers and strategies
• Hedge fund indices
• Absolute vs. relative return: Main opportunities for institutional investors

On the evening of 9 December 2004, Hedge Funds Review magazine will be holding its third annual Fund of Hedge Funds Awards 2004 Dinner. Winning one of the categories is one of the most sought-after accolades in the industry, and this is the only awards presentation and dinner that is held exclusively for European funds of hedge funds.

E-mail: tracey.huggett@incisivemedia.com Or contact Tracey Huggett on tel: +44 (0)20 7968

2 Day conference: 14-15 December 2004, The Selfridge Hotel, London

10% DISCOUNT for Alternative Market Briefing Readers (quote AMB) - significant discounts also apply for institutional investors.

Come to Finance IQ's Volatility Trading and Risk Management conference and grasp how you can hedge your portfolio using volatility trading strategies and also exploit the link between credit, equity and the underlying volatility.

You will hear from top quantitative analysts such as Dr. Rami Habib from Fimat, Michael Wexler from Maple Leaf, Dr. Michael Erhart from DFL Financial Services, and many others regarding the changing nature of volatility trading strategies. The following organizations will also be presenting at this exciting event: Abraxas Capital Management, Bank of America, Societe General Asset Management, BGB Weston, Ersiwell Capital LLP, Gaim Advisors, Lakeview Arbitrage, ER Capital, London Business School, Chicago Board of Options Exchange.

To guarantee your place visit: www.iqpc.co.uk/GB-2383/op email: holly.rowland@iqpc.co.uk or call: +44 207 368 9300 quoting AMB to receive your 10% discount.

Thursday 9 December 2004, Geneva, Hotel des Bergues

Equities have tended to provide upsetting returns for investors over the past 5 years, whereas commodity prices have been rising steadily. After 20 years of disappointing returns, commodities have now turned around and entered a secular up trend. A new bull market is underway and it is in commodities.

It has been shown that investing in commodities improves the risk return of an investment portfolio and now the commodities are accepted both as a diversification asset and as a hedge against inflation especially unexpected inflation.

The Commodities Investors Forum is the European only one true event where the institutional and private investors meet to learn and debate about all the issues surrounding the commodity market. With over 11 speakers, the Commodity Investors Forum will feature commodity experts from across Europe including the UK, France, Switzerland, and the USA.

The Commodity Investors Forum provides the best networking and business opportunity in commodities this year. Update yourself on developments and trends in commodities and make sure that you are present at the Forum Geneva on Thursday the 9 of December 2004.

Website: www.academyfinance.ch/Pdf/AF145Commodities.pdf

2 Day conference: 31 January – 1 February 2005, The Selfridge Hotel, London

10% DISCOUNT for Alternative Market Briefing Readers (quote AMB) and FREE to attend for institutional investors.

Attend Finance IQ's Generating Absolute Returns for Pension Funds - a pension fund packed conference where huge opportunities exist for hedge fund providers who have established relationships with current and future investors.

Your clients - institutional investors - are coming so they can hear from top hedge fund experts such as Christopher Fawcett from Fauchier Partners LLP, Simon Ruddick from Albourne Partners, James Walsh from Hermes Pensions Management, Chris Mansi from Watson Wyatt, and many others regarding the changing nature of absolute return investment strategies.

The following organisations will also be presenting at this exciting event: ABP Investments, Lloyds TSB Group Pension Fund, Asterias, Clwyd Pension Fund, EDHEC Business School, the Financial Services Authority, Lovells, Mercer Investment Consulting, Pacific Alternative Asset Management Consultancy, Sabre Fund management Ltd., Schneider Capital, Merseyside Pension Fund, Skandia life and Insurance Company.

To guarantee your place visit: www.iqpc.co.uk/GB-2314/amb email: enquire@iqpc.co.uk or call +44 207 368 9300

1 - 3 February, Steigenberger Frankfurter Hof, Frankfurt, Germany

Get the definitive facts on the German hedge fund market at Germany's premier hedge fund event for investors and fund managers.

Conference highlights include:

• Are the new rules presenting real opportunities?
• Analysis of local single hedge funds and funds of hedge funds trends
• How much money has actually been allocated to hedge funds in Germany?
• Focus on German investors - who are they and what are they really buying?
• How is Germany positioning itself against other major hedge fund markets
• Successful styles and strategies in challenging times

Top-level speakers include:

• Alexander Appelt, Senior Portfolio Manager, SwissLife Germany
• Ernst-Ludwig Drayss, Partner & CIO, Berlin & co. KGaA
• Fred Siegrist, Co-Head & CIO, RMF Investment Management
• Alberto Giovannini, CEO & Director, Unifortune SGR SpA
• Ulf Becker, Head of Equity Hedge Funds & Senior Portfolio Manager, Lupus Alpha

To obtain your 10% discount as an Opalesque subscriber, call Naheed Sharmin on +44 (0) 20 7827 5980 or mailto:naheed.sharmin@terrapinn.com. Website: www.hedgefundsworld.com/2005/hfw_DE a>

Build your brand and create new business with the intelligent marketing options of the Opalesque Alternative Market Briefing - the industry's favorite hedge fund newsletter! Please email me: knab@opalesque.com for details. Communication that works!

ISSN Number: 1450-1953
Alternative Market Briefing has been called the best news service on hedge funds. Our mission is to intelligently select and timely provide the most important daily news for professionals dealing with hedge funds. Alternative Market Briefing offers both a quick overview and indepth coverage of all subjects through the "Source" link that leads you to the publicly available online news sources. The concept that we follow is that of a "clipping service" - the added value for you is that we screen, intelligently select and efficiently present each day the most important hedge fund news. The majority of the news sources used do not require a subscription, however some may ask you to register. Once registered, you can access these news sources freely. Please mail us your feedback and suggestions to feedback@opalesque.com - we love to hear from you!

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Disclaimer: The information contained in this newsletter does not constitute an offer or solicitation to sell any security or fund to or by anyone in any jurisdictions, nor should it be regarded as a contractual document. Under no circumstances should the information provided on this newsletter be considered as investment advice, or as a sufficient basis on which to make investment decisions. The information contained herein has been gathered by Opalesque Ltd. from sources deemed reliable as of the date of publication, but no warranty of accuracy or completeness is given. Opalesque Ltd. is not responsible for and provides no guarantee with respect to any of the information provided herein or through the use of any hypertext link. Past results are no indication of future performance. All information in this newsletter is for educational and informational purposes and does not constitute investment, legal, tax or accounting advice.