Thank You for Attending GAIM USA 2010

GAIM USA 2010 was a resounding success, with in excess of 500 senior participants from the hedge funds industry and its investors in attendance. From the atmosphere at the event, it quickly became apparent that the industry had turned a corner and, with investors openly discussing their future allocation strategies, a collective sigh of relief was felt by an industry ready to capitalize on an outstanding range of investment opportunity in 2010.

Chaired by J. Alan Lenahan, CFA, Managing Principal / Director of Hedged Strategies, FUND EVALUATION GROUP the brand new Investor Summit got proceedings off to a tremendous start with institutions including UTAH RETIREMENT SYSTEMS, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC, BRITISH AIRWAYS PENSION INVESTMENT MANAGEMENT LIMITED, SAN BERNARDINO COUNTY EMPLOYEES RETIREMENT ASSOCIATION, PENNSYLVANIA STATE UNIVERSITY and UNC (UNIVERSITY OF NORTH CAROLINA) MANAGEMENT COMPANY asserting the new imperatives of strong fund governance, an alignment of interests between managers and investors, greater transparency and new frameworks for evaluating risk.

In the keynote political address Congressman Jim Himes gave attendees an insider’s view on the current administration’s intentions with respect to hedge funds. While recognizing the importance of the industry, Congressman Himes indicated that funds would soon be brought within the mainstream of regulation although the intention was not to compromise the industry’s entrepreneurship and innovative nature. Attendees were left with little doubt however that things would not continue as they had in the past.

Later that afternoon, in a highly effective and insightful economic address professor Douglas Holtz-Eakin presented a sober picture of the challenges facing the country and world at large in 2010 for the next decade. A highlight was an incisive analysis of the long term fiscal implications of the aging society in the US.

The main conference was opened by, Todd Groome, Chairman, ALTERNATIVE INVESTMENT MANAGEMENT ASSOCIATION (AIMA). In a tradition for GAIM USA a highlight of the program was a look at the investment opportunity set for the year ahead. In a session lead by veteran investor Lawrence E. Kochard, Chief Investment Officer, GEORGETOWN UNIVERSITY, an outstanding line-up of hedge fund leaders James Gutman, Portfolio Manager/ Economist, ARMAJARO ASSET MANAGEMENTm, Norman Milner, Managing Director and Co-Portfolio Manager, RAMIUS ALTERNATVE INVESTMENTS, Jeffrey Enslin, Senior Managing Director, CAXTON ASSOCIATES and Richard Grubman, Co-Founder and Senior Managing Director, HIGHFIELDS CAPITAL MANAGEMENT shared their uniquely qualfied insights.

Later that morning delegates enjoyed a highly thought provoking session addressing the geopolitical stage George Hoguet, Global Investment Strategist, Senior Portfolio Manager, STATE STREET GLOBAL ADVISORS and James G. Rickards, Senior Managing Director for Market Intelligence, OMNIS, INC. presented a uniquely qualified analysis of the Israeli-Iran nexus, US Fiscal Policy, relations with China and the potential impact for trade flows, treasuries, Energy Security, Oil and Direct Foreign Investment. Throughout the discussion key consideration was given to the trading and longer term investment portfolio implications for global investors.

The investor perspective was once again in high relief by a much anticipated panel of some of the most well respected investors in alternatives; Dr. Ashvin B. Chhabra, Chief Investment Officer, INSTITUTE FOR ADVANCED STUDY, Jonathan D. Hook, Vice President & CIO, THE OHIO STATE UNIVERSITY and Lawrence. Kochard, Chief Investment Officer, GEORGETOWN UNIVERSITY held the assembled investors and managers in thrall as they addressed the subject of how leading CIOs are striving to build a consistent portfolio management philosophy to stay invested and ready to benefit from the possibility of the greatest returns over the next 10 years while weighing the needs for capital preservation in the face of a prolonged recession and ‘w’ shaped recovery.

Later in the afternoon a three highly regarded investors, Randall Yanker, Senior Partner & CIO, ALTERNATIVE ASSET MANAGERS, L.P. (“AAM”), Theodore Economou, General Manager, CERN PENSION FUND, and Caroline Cooley, Senior Portfolio Manager, Investment Committee Member, CRESTLINE INVESTORS, INC. put 10 managers through live due diligence in the highly anticipated session, “How Robust is your Alpha?” Each manager had the opportunity to briefly how they generated alpha for their investors and then answered questions put by the panel of investors. The managers clearly relished the opportunity to explain how their strategies worked in-depth and other investors learned a lot not only about the fund strategies but also how highly experienced investors conduct their due diligence.

The How Robust is Your Alpha session was just one of the many sessions where attendees were able to hear from leading managers including BALYASNY ASSET MANAGEMENT, KARSCH CAPITAL MANAGEMENT, LP, LEVIN CAPITAL STRATEGIES, LP, DAVIDSON KEMPNER CAPITAL MANAGEMENT LLC, VENOR CAPITAL MANAGEMENT GP OAK HILL ADVISORS LP, D. E. SHAW & CO., L.P. OCH-ZIFF CAPITAL MANAGEMENT GROUP BALESTRA CAPITAL, LTD, PSQR MANAGEMENT LLC.

The second day of the event chaired by Alan Andreini, CEO of global macro fund, ARMORED WOLF, addressed one of the key issues facing managers and investors – the emergence of a new economic contract and fee paradigm. Perspectives were presented from all sides including from leading fund of fund Private Advisors, hedge fund Marathon Asset, private investor Ike Kier of KIER GLOBAL, leading institutions UTAH RETIREMENT SYSTEMS, CAISSE DE DÉPÔT, and SAN BERNARDINO COUNTY EMPLOYEES RETIREMENT ASSOCIATION and leading academic Professor Franklin R. Edwards.

Once again GAIM USA was saw outstanding support from leaders from the Fund of Hedge Funds community with Jane Buchan, Chief Executive Officer, PACIFIC ALTERNATIVE ASSET MANAGEMENT COMPANY (PAAMCO), Martin B. Kaplan, Chief Executive Officer, MESIROW ADVANCED STRATEGIES, Randall Dillard, Partner, LIONGATE CAPITAL MANAGEMENT, Sean McGould, President & CIO, LIGHTHOUSE INVESTMENT PARTNERS, LLC, Benjamin S. Appen, CFA, Partner, MAGNITUDE CAPITAL, Mark Yusko, President and Chief Investment Officer, MORGAN CREEK CAPITAL MANAGEMENT leading some of the best attended sessions focusing on both future prospects for Funds of hedge funds and where the funds themselves see the investment opportunities in 2010.

Throughout the 3 day program support form leaders of the hedge fund community was keenly apparent with attendees able to hear from an unrivaled line-up of expert investors and managers. No more so than in the exceptional keynote presentation by Dinakar Singh of TPG AXON. Showing remarkable energy and insight for having completed a recent flight from southern China, Singh kept attendees transfixed, as he shared an outstanding presentation on the global investing environment of 2010.

With investors clearly engaging with the hedge funds present and one on one meetings being taken throughout the event, a clear sense of optimism stayed with GAIM USA delegates as they left Florida to return home.