CDC Invests in Microfinance Fund
The United Kingdom's CDC Group is investing $30 million in a new microfinance hedge fund.
According to the Financial Times, the fund has already raised $40 million, which includes money from private equity honcho John Muse, a founder of the firm Hicks, Muse, Tate & Furst. This is the biggest investment so far for CDC in the microfinance arena.
CDC is a government-owned fund-of-funds dedicated to investing in emerging markets. It currently has about $4 billion in assets.
The underlying fund is managed by Minlam Microfinance. The New York-based firm acts as a credit provider to microfinance institutions, managing both the credit risks of borrowers and the currency risks involved in lending to different countries.
Microfinance institutions provide small loans to individuals in developing countries to help them start new businesses. Advocates say for-profit companies providing small loans can actually be more effective at aiding development than large charities giving handouts to poor countries. Muhammad Yunus, a pioneer of the microfinance movement, was awarded the Nobel Peace Prize last year.
In addition to CDC, other socially conscious investors have taken an interest in microfinance recently. TIAA-Cref has earmarked $100 million for investing in microfinance projects.
(HFN Daily Report)
The tawdry tale of sexual harassment and black-market female hormones at SAC Capital isn’t just a matter for the courts and arbitrators anymore.
The Equal Employment Opportunity Commission is now investigating the allegations by former SAC trader Andrew Tong that his then-boss, top SAC fund manager Ping Jiang, ordered him to take female hormones and wear women’s clothing to curb his aggressive trading tendencies. Tong also alleges that the two men had a sexual relationship.
The EEOC probe, revealed in court papers, was first reported by the New York Post.
According the newspaper, Tong is holed up in his Jersey City, N.J., condo, while Jiang continues to run Stamford, Conn.-based SAC’s quantitative trading operations in the firm’s New York office.
SAC brass were reportedly enraged that details about the case, which were supposed to be sealed, leaked to the media this week. One employee told the Post that bosses launched “a witch hunt” to determine the source of the leak. SAC has called the accusations “salacious and false.”
Tong’s lawyers, according to the Post, counter that they “are neither salacious nor false.”
October 4, 2007
For hedge funds burned by the subprime slide, the disaster was the market equivalent of an act of God: It simply could not be foreseen. But one aptly named hedge fund foresaw, and is profiting handsomely.
Harbinger Capital Partners' bets against subprime mortgages were rewarded as one of its hedge funds has doubled in value, while another has managed a more modest 65% year-to-date return. Its eponymous $11 billion flagship added 5.4% in September is up 65% through last month, Bloomberg News reports, and its $2.5 billion Special Situations Fund has enjoyed even greater success, with September’s 9.9% return bringing its year-to-date to over 100%.
In addition to shorting subprime at the right time, the firm credited a bullish commodities market for the returns.
"Be the change you wish to see in the world"