Media Mentions
2008
Hedge Funds Review (August 2008) quoted Charles Shiramba regarding where insolvent funds are handled. Bear Sterns hedge funds demonstrate this can be an open question. "These funds were domiciled in Cayman and it was widely assumed by restructuring and insolvency professionals...that the funds would be formally wound up in that jurisdiction, albeit that many investors would be international and...US investors. Instead the Cayman liquidators' attempt to apply for recognition in the US...was rebuffed, despite the fact that US insolvency law was recently changed to facilitate this type of cross-border liquidation," notes Mr. Shiramba. "The important point is...that when a fund blows up, the legal forum for its insolvency should be predictable. If not, insolvency becomes a less quantifiable risk and...this kind of uncertainty is bad for the hedge fund industry."
Charles Shiramba, Banking and Finance - London, Hedge Funds, London, Restructuring & Insolvency
Stephen E. Older was quoted in a May 22 article published by HedgeWorld Daily News regarding hedge funds seeking protective contracts called "big boy letters" for trades. These letters are contracts between financially sophisticated parties in which one party, usually the buyer, agrees not to sue the seller for holding back certain information. Mr. Older stated that hedge fund clients will routinely want to do a trade with a big boy letter, however he would counsel caution on the use of this approach. "Big boy letters can't guarantee protection from lawsuits regarding trades by intermediaries," he said. "But…a properly drafted letter should mitigate the risk of liability."
Stephen E. Older, Corporate, Hedge Funds
Charles E. Levin was quoted in the March issue of Hedge Fund Manager Weekly in a roundtable feature regarding the vibrant hedge fund market in Chicago. Mr. Levin discussed how the Chicago hedge fund industry developed, what gives the city's managers their edge and whether the city’s funds will continue their impressive returns despite the difficult market conditions. When asked how he accounts for the success of Chicago-based hedge funds, Mr. Levin stated, "With respect to funds we interact with in this market, we see them often being broad-based funds employing multi-strategies. We also see these funds sometimes making opportunistic investments which are not programme-driven...we expect that these tendencies have led to some significant gains that may have offset losses on portfolio assets which have been widely experienced."
Charles E. Levin, Corporate, Hedge Funds
2007
Stephen Older and Seth Goldsamt were listed as advisors to Morgan Stanley Principal Investments (MSPI) in the April 27 issue of The Daily Deal. McDermott advised MSPI on its equity commitment to Mitel Networks Corporation in its purchase of Inter-Tel Incorporated.
Seth T. Goldsamt, Stephen E. Older, Corporate, Hedge Funds, M&A - Private Equity, Mergers & Acquisitions
2006
Edwin Laurenson was quoted in the October 2006 issue of Investor Relations Update in an article that questions the ongoing topic of hedge fund regulations.
Edwin C. Laurenson, Corporate, Hedge Funds
Edwin Laurenson was quoted in August 17 issue of HFM Week in an article that questions the longer lock-in periods that are becoming increasingly acceptable in the hedge fund industry despite the end of SEC rule. Mr. Laurenson provides perspective on still imposing these lock-ins "only managers reasonably sought-after were able to impose a two-year lock-in to get around SEC registration and will be able to keep it. They had market power to do it in the first place. They had to be someone in a considerable degree of demand."
Edwin C. Laurenson, Corporate, Derivatives, Structured Finance and Financial Products, Hedge Funds
Edwin "Ted" Laurenson commented on the courts' rejection of an SEC hedge fund rule in the June 24 issue of The Wall Street Journal. If companies are asked to put their registration aside until it is clear on what the SEC's next steps will be in the process, Mr. Laurenson predicts that a number of hedge funds would act to de-register due to procedure and policy costs that would be incurred, which would be particularly onerous on smaller hedge fund advisers.
Edwin C. Laurenson, Corporate, Hedge Funds, Securities
2005
Greg Lawrence was quoted in the November 21 issue of The Deal regarding the Federal Energy Regulatory Commission's oversight on hedge funds investing in power plants.
Gregory K. Lawrence, Corporate, Energy and Derivatives Markets, Hedge Funds
Greg Lawrence was quoted in the November 21 issue of The Deal regarding the Federal Energy Regulatory Commission's oversight on hedge funds investing in power plants.
Gregory K. Lawrence, Corporate, Energy and Derivatives Markets, Hedge Funds
Ted Laurenson was quoted in Investment News on September 26 in an article about hedge fund managers exploiting a loophole that allows them to evade regulatory safeguards aimed at protecting investors. Faced with the prospect of registering with the Securities and Exchange Commission as investment advisers, the managers are extending their funds' lockup periods. The rule change, which is scheduled to take effect in February, allows hedge fund firms to skirt SEC audits and inspections by locking up the money of its investors for more than two years. As lockup periods are private agreements between hedge fund firms and investor, there's no way of knowing exactly how many funds are extending them. "There have been noises out of the SEC that suggest they have noticed the trend and they don't like it." said Mr. Laurenson in response to the news.
