One year ago
»» GAM portfolio manager Anthony
Lawler predicted a brighter future for European equities
following a tumultuous year in European politics. "While the
growth outlook will likely be challenging in Europe for the
foreseeable future," he wrote in a column for Absolute Return,
"the opportunity set appears to be changing for equity hedge
A year later, the numbers suggest his call was
right. The MSCI Europe Index is up 22.8% since November 27,
2012. And although hedge funds on both sides of the pond have
been investing in European equities, the EuroHedge European Equity Index (EUR) was up
10.09% for the year through October, exceeding composite
indices for both Europe (6.49%) and the Americas (6.32%).
"We have been happy with European [equity] managers
because not all active managers have done well this year,"
Lawler said in an email today. "Several European managers have
done well by either picking equities that have benefited from
global growth and flows or from keeping their net long bias.
But even more so from taking exposure to names more globally
positioned and in some cases direct exposure to Japan and
Five years ago
»» Sandra Manzke, the founder of funds
of hedge funds Tremont Group Holdings and Maxam Capital
Management, sent a
highly circulated email to hedge fund investors. In it, she
railed against managers who imposed gates, suspended
redemptions, and generally failed to report performance data as
the market got pummeled by the U.S. financial crisis. She
I am appalled and disgusted by the activities of a
number of hedge fund managers…2008 is certainly a poster
child for the need for better regulation. Now I feel that
investors need to form an organization to protect against the
egregious hedge fund manager. Hedge fund managers do not
disclose their investors and we are each operating in a vacuum.
We should be able to unite to change how this industry
operates. (Full text here.)
She called for the establishment of a Hedge Fund
Investors United Forum to police unruly fund managers and
demand investor rights.
Weeks later, however, she was embroiled in a
firestorm. Both Maxam Capital Management and Rye Asset
Management, a division of Tremont, were some of Bernard
Madoff’s largest investors. Madoff was arrested on December 11, 2008, after he confessed
to running a Ponzi scheme.
The five ensuing years have not been kind to
Manzke. In early 2009, she gave up her attempt to organize hedge fund
investors and found herself a defendant as investors attempted
to reclaim their assets from businesses that indirectly
profited from Madoff’s scheme.
On September 17, the U.S. Bankruptcy Court for the
Southern District of New York approved a $97.8 million settlement between the
Madoff Recovery Initiative and entities representing Manzke,
her family, and Maxam Capital.
Manzke remains a defendant in a lawsuit against
Kingate Management, for which she was a director from 1995 to
2003. A settlement that would have closed the case is being
appealed, according to Jonathan Cogan, an attorney at law firm
Kobre & Kim who represents Manzke.
Cogan said Manzke declined to comment, citing