New York-based hedge fund manager Karen Finerman and mother of two sets of twins tells how to succeed at business and life in a new, just-released book entitled: Finerman’s Rules: Secrets I’d Only Tell My Daughters About Business and Life.
Finerman has what to say about everything from merger arbitrage to clothes-buying advice, always emphasizing the importance of financial independence for women and their frequently seen need to get out of their own way to success.
The author is not afraid to say what she feels despite its obviously politically incorrect position. Finerman equates success with money, and she also believes women should not be afraid to use their sexuality as a business strategy.
Finerman was inspired to write her book when she saw that her girls had a different attitude towards financial independence as her boys, despite the fact that they grew up in the same environment. Her two sets of twins are both boy-girl combos, ages 16 and 12. For some unknown reason the girls absorbed the message that they could one day rely on someone else for their financial security, while the boys felt it was their responsibility to become financially independent.
“I thought about my career and all the things I’d done wrong and all the things I wish people had told me,” Finerman said. “Sometimes, I feel women get in their own way. I know I did it many times. So how could I keep my daughters getting out of their own way?”
At a summit hosted by David Cameron one foundation which is funded by a London-based hedge fund pledged to donate $787 million to support efforts to overcome childhood malnutrition around the world.
The donation will come from the Children’s Investment Fund Foundation, (CIFF) and is funded by the profits generated by Chris Hohn’s TCI hedge fund. It is believed that this is the single largest donation to end hunger ever made by a private foundation.
This donation was one among several totaling $4.1 billion in new funding promises given at the Nutrition for Growth summit which took place in London. The summit was jointly hosted by the British and Brazilian governments and CIFF. The British government also pledged an additional £655 million.
CIFF is run by Jamie Cooper-Cohn, who is the wife of TCI fund manager Hohn. Cooper-Cohn explained CIFF’s focus on childhood malnutrition:
“Our approach to segmenting deaths by disease – AIDS, malaria, diarrhoea, pneumonia – means that we have missed perhaps the most critical factor in preventing child death, morbidity and disability.
“Under nutrition is the underlying cause of almost half of global child deaths and one third of maternal mortality.
“Similarly, we segment the paths to economic development under the traditional categories of agricultural productivity, power and road infrastructure.
“Yet, economic experts tell us that investments to prevent stunting, the irreversible condition that prevents proper growth and brain development, are among the most cost-effective, sustainable approaches to economic growth.”
The couple are generally publicity-shy, but they are Britain’s biggest philanthropists. In the past five years they have donated over £1 billion. Mr. Hohn, who is 46 years old, set up TCI in 2003, and has a reputation for being aggressive and ruthless with the management of the companies in which he invests.
TCI was structured from the beginning in way so that a percentage of the earnings would go directly to CIFF. In the year 2008 Hohn gave £466 million to CIFF, at the time the largest donation in history by a British citizen in a single year.
TCI has grown to be Britain’s largest charitable foundation in just one decade, and has been praised for being the foundation which revolutionized charitable work because it sets hedge fund style performance targets to charitable projects.
Scott Stanford, Goldman Sachs’ global head of new media and internet investment banking, has moved on to a new venture called Sherpa, which Stanford says is designed to “build, invest in, and accelerate,” the launching of innovative internet companies.
Stanford sat on a panel recently at the Future of Media Conference hosted at the Stanford Graduate School of Business. During the panel discussion entitled Investing in New Media, Stanford was able to discuss a variety of topics including any big technology deals that he missed, when a startup should monetize, and his opinion on last year’s IPOs.
When asked what investment he is sorry he missed, Stanford answered: “One company is Twitter. It is definitely a different type of media company. It’s an awesome company and has its place in the ecosystem, clearly.”
He also commented on at what stage during development of a startup the entrepreneur should begin to concentrate on monetization.
“I’d start with what your exit strategy is. So, if your exit strategy is to get acquired, then I’d say just make sure you’ve got the right consumer doing the right thing at the right time, and that will be of value to somebody. Frankly, to maximize your monetization, you should not even begin to hint at the potential of monetization or lack of monetization. Honestly, once you start to monetize, your value might go way down again, and then you have to prove yourself back up to that point. I agree with building scale first and worrying about monetization later.”
Asked his opinion about which IPOs were the either the weakest or most oversold, Stanford replied:
“I can’t comment on any specific transactions for a lot of obvious reasons. At the end of the day, all we’re really talking about here is how much will somebody pay for growth, and how far will somebody be willing to lean into the future growth potential of the company? The beauty about the investing that we do on the private side is that we lean pretty far. The analogy I used with a very high profile IPO not too long ago is that getting an IPO right is like a bobsled race. You’ve got eight people running alongside — one’s the market, one’s the [stock] exchange, one’s the company, one’s the underwriter. Everyone’s got to jump in at the same time. You want to go online as fast as possible, but that’s just the start of the race. Then you have a course. But the reality is every little bobsled reaches terminal velocity; it’s just a matter of when. So, if you’re long-term focused, there are plenty of great opportunities. I wouldn’t be myopically focused on how the IPO performed on a single day.”
London-based firm CQS is taking advantage of the increase in investor interest shares which are both rising and falling by launching its first so-called long short equities fund.
CQS manages at least $12 billion in assets and is already invested in equities with its flagship Directional Opportunities fund. The firm is best known, however, for betting on the credit markets.
The improvement in stock performance this year has sent many hedge fund investors to place their bets on shares. One survey conducted by Credit Suisse which came out in March stated that long-short equity funds are the most in-demand of hedge fund investments in 2013.
The majority of hedge funds are long-only, meaning that investors can only bet that their stocks will rise in value. But hedge funds originally began as long-short funds, and that is one of the biggest strategies hedge funds have used. Now with the market looking better investors are ready to return to the traditional hedge fund model.
The new fund will be called CQS European Equity Long/Short Fund and will be managed by David Morant. Morant was formerly with SAC Capital, a CQS rival, until CQS recruited him for the new fund.
Kohlberg, Kravis, Roberts & Company, the global private equity firm, announced that it was placing the former CIA Director David Petraeus in charge of the just-launched KKR Global Institute. The purpose of the institute is to examine global macroeconomics, social issues and geopolitical factors and their effect on investment strategies.
Included in Petraeus’ duties will be to aid KKR investment teams in their due diligence, most important of which will be when considering new locations for KKR investments.
Petraeus was highly acclaimed for his role in preventing a full-blown civil war from breaking out in Iraq while he was acting as the commander for the US forces there. President Barack Obama also called on Petraeus to take charge of the US troops in Afghanistan. Finally Obama gave Petraeus the reins of the CIA in 2011.
In November 2012 Petraeus resigned from the CIA due to the fallout from his confessed extramarital affair. Observers were shocked by the scandal of this widely respected military leader who was once seen as one of America’s top leaders and role models. There was even talk at one time of Petraeus possibly making a bid for the White House.
Dr. Dermot F. Smurfit has been appointed to take over the chairmanship of the ML Capital Group of Companies beginning on April 23, 2013.
Chief Executive Officer Cyril Delamare commented on the appointment:
“Dr Dermot F Smurfit’s appointment will further strengthen and help ML Capital build on the foundations put in place by the existing management team. He will be a highly valuable member of the board and will take an active role in developing the business. Dr Smurfit brings to the company a formidable reputation of resolute leadership and entrepreneurial spirit, which we believe will serve the company well as we strive to become the leading independent provider of European regulated fund structuring and distribution services.”
Smurfit has been running Irish businesses for over 40 years. He has managed over 40,000 employees throughout 32 countries around the globe. He is the former joint deputy chairman of Jefferson Smurfit Group. Today Smurfit is the chairman of Powerflute Oyl, Eurolink Motorway Services, and Cosmo Specialty Fibres. Smurfit is also the former non-executive chairman of Peach Holdings, Anker PLC, Pankaboard Oy and a former non-executive director of ACE Ltd.
Smurfit had this to say about his new position:
“I look forward to working with the board and management team on the next phase of the company’s development. We have all witnessed the substantial growth of the regulated fund space in Europe in recent years; it therefore goes almost without saying that I am very excited to become part of a firm with a unique and market leading offering.”
Hedge fund manager John Paulson, along with his wife Jenny, co-chaired the gala fund-raising event which took place at the 92nd Street Y in New York City at the end of May. Paulson and his wife brought along their two daughters, the younger clutching a stuffed toy dog.
“My girls went to nursery school here,” Paulson said.
The evening began in the lobby of the famed New York events space, which was decorated to give the appearance of a forest. Soon after the reception the 750 guests spread out over the building into different rooms where they were served dinner. The evening’s end came in the auditorium after Jennifer Hudson sang songs from “Dreamgirls.”
John Paulson, as co-chair, helped raise the evening’s $4.2 million take is support of the famed Upper East Side institution. The 92Y is known world-round for its eclectic programming ranging from classes to smart conversations, to poetry readings to concerts.
“The Y is a very important community and cultural center for New York City,” Paulson said. “My mother came here on dates in her teens.”
Due to smart legislation the British Virgin Islands has, over the past few years, developed into a dynamic, fertile ground for the growth of the offshore funds industry.
Beginning in 1996 with the Mutual Funds Act, the BVI jurisdiction has blossomed into a powerful and upbeat participant at the forefront of the growing financial industry. By enacting legislation which creatively combines the best characteristics of laws from the United Kingdom, Delaware and other user-friendly jurisdictions off and on-shore, the BVI has been able to attract a sizeable, and growing customer base. The BVI, instead of re-inventing the wheel, utilizes ideas already well-known to lawyers based in North America and Britain, therefore making it easier to work with and meeting the needs of onshore clients.
The BVI has many advantages for investors. The past 16 years of continuing legislation has seen the BVI grow into a jurisdiction that can hold its own against the best offshore locales for fund placement.
Darren Stainrod and Mark Fagan join two other recent appointees to the directors’ lineup at the alternative financial management firm HighWater. Stainrod comes to HighWater from a stint as the managing director of UBS Cayman, where he was employed for 17 years.
Mark Fagan was promoted to director at HighWater. He is a Chartered Accountant and CFA Charter holder. Before Fagan joined HighWater he worked at RBC Dominion Securities as an investment advisor. He was also a portfolio manager and performance analyst at Butterfield Bank.
Stainrod and Fagan are taking their place with other newcomers Matt Auriemma and Todd Groome. Auriemma was the senior managing director and global head of operational risk management at UBP Asset Management. Groome was the global chairman of AIMA plus and advisor to the International Monetary Fund.
The managing director of HighWater, Gary Linford, commented on the latest appointments:
“We are thrilled that Darren will join us and are pleased that HighWater continues to attract such high quality professionals. Mark has worked tirelessly implementing our business model, extending his understanding of our clients’ needs. Mark and Darren have the correct skill-set alongside the client-service attitude that we live by.”
Untitled, a new restaurant in Chicago, will play host to the 11th annual “Hedge Funds Care” benefit on May 22 at 6pm. The benefit will raise money for the prevention and treatment of child abuse. This year’s fundraiser is striving to attract the younger crowd among hedge fund managers with a prohibition era themed nightclub venue. There will also be an additional party held afterwards. GEM Realty Capital will be the recipient of the Kelly Lively Award in recognition of their outstanding contribution to Hedge Funds Care.
The benefit will have cocktails, a raffle, live entertainment and tasting of great liquor in an environment inspired by the supper clubs during the days of prohibition. The after party will begin at about 9:30pm in the same venue.
“This special evening will bring together the Chicago financial community in support of a common charitable cause, which is to help prevent and treat child abuse,” said Committee co-chair Wesley Nissen.
“I am very thankful for the industry’s strong commitment to helping us support local programs that truly make a difference in the lives of abused and neglected children.”
Committee co-chair Benji Wolken added. “It is our responsibility not only to support this vital cause, but also to engage the next generation of financial professionals to get involved now and carry on this important work.”