Thursday, December 18, 2008

Another good month for New Zealand managers...

Hi - another good month for New Zealand managers with the Ernst and Young New Zealand Absolute Return Index returning +1.502% in November making it +17.597% year-to-date. Since inception the index has returned +27.471% and is currently annualizing at +19.24%. In terms of sectoral performance - weakness in global equities again in line with global equity indices, and strength in volatility and tail risk strategies.
Anthony Limbrick

Wednesday, December 17, 2008

Amber Partners on Madoff


Amber Partners, a London-based hedge fund certification business recently put out an interesting Amber Alert (comment) on Madoff.

Key points made were:

  1. Investors who invested directly with Madoff did not buy shares in an offshore company or partnership interests in an onshore limited partnership.
  2. It was extremely unusual for a firm of Madoff's size and supposed reputation to utilize an audit firm which was quite clearly not one of the "top 4" firms nor a specialist in auditing broker-dealers.
  3. Amber Partners has never known a broker that refuses to send trade tickets to clients, other than in hard copy form via the postal system.
  4. Madoff was infamous for not letting investors visit their offices to performan any on-site due diligence.
  5. Many who invested with Madoff recognized the risks involved. A logical counter argument to all of the above "red flags" was that there would have to be substantial collusion within Madoff for such a fraud to go undetected for such a long period, and there was also the fact of his continued regulation by SEC and FINRA.

If you want a copy of the release, please register at the NZARA website ( Once website access has been granted you may find the document in the Library on the site. You could also register on the Amber Partners website at for future alerts and announcements.


Anthony Limbrick

Tuesday, December 16, 2008

From the FT - "Ten reasons to..."


The Financial Times ( has some excellent columnists and their Alphaville blog ( is a great way to get a real time view on market developments.

With the Madoff disaster putting the global alternative investment industry under even more pressure, I thought it was time for some educated light relief.

Please see the link below for "Ten reasons why you should hug a hedgie" from the Lombard column. Amusing - but also some good points made - points that should be considered before the proverbial "baby" is thrown out with "bath water".

Tuesday, December 2, 2008


Hi there,

As of this week the New Zealand Absolute Return Association (NZARA) is happy to endorse the Chartered Alternative Investment Analyst Association (CAIA), the global organization responsible for education of investment professionals active in the alternative investment industry.

CAIA's Chartered Alternative Investment Analyst qualification is a best-practice educational standard, now attempted by thousands of applicants from across the globe every year.
Please note the links below for more information on the CAIA program.

Preliminary Diagnostic Review - a test of the traditional finance material that candidates are expected to know).

Please note a representative of CAIA is likely to be visiting Australia and New Zealand in early 2009.