Criticisms of hedge funds have been published in The Scotsman today concerning the levels of fees compared to performance since the start of the year.
The paper notes such funds returned 10% per annum in 2002-3, but since January this year have on average managed just 2%, not far off the sideways movement of the general market.
Martin Currie fund manager Ross Leckie is quoted saying: “If hedge fund returns and markets are correlated, then why should investors pay such high fees? If hedge funds can’t make money in flat markets, their credibility will be suspect."
ANOTHER US INVESTMENT bank has jumped at the chance to acquire the UK’s only remaining blue-blooded investment bank and broker Cazenove with an offer worth about £800m, the FT reports.
The price is about £300m less than the sum insiders have suggested Cazenove would like to get, which would make it a hard sell to its current managers and owners.
Cazenove, which acts as broker to about half the FTSE 100 index’s constituents, is also considering an offer from JPMorgan Chase, which has been building growth through acquisitions over the past few years.
The Times reports a deal with JPMorgan would put about £400m in cash straight into the pockets of the UK investment bank’s current owners.
The deal would see JPMorgan take a 50% stake initially, with an option to buy out the remainder over time. Both sides are working to complete an agreement ahead of Cazenove’s annual meeting in two weeks’ time, The Times adds.
WARNINGS OVER POSSIBLE civil unrest were pushed by Russian oil producer Yukos yesterday after the company said new government restrictions stopped it paying its bills, including salaries to workers.
Accounting for some 2% of global oil production, the Russian company made the announcement after the arrest of another of its executives on charges of having helped steer some £1.5bn in unpaid taxes through its accounts.
With said accounts now frozen by Russia’s Hector, the company and its subsidiaries are therefore unable to pay wages, taxes and operating expenses, writes The Daily Telegraph.IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till