As President of RWH Advisors, International Chess Grandmaster Ron Henley acts as Special Consultant to Ultra High Net Worth Individuals and Family Offices.  He presented “Learning From A Chess Master: Applying Game Strategy To Systematic Trading” at GAIM International 2010, tracing the hiring of games players to trade in the early 80s to the use of chess theories in the development of algorithmic trading.

In an interview for the Spotlight Series, Ron describes how understanding the tactics and strategies of games like chess, can help in understanding trading….. and how to win.

Anne Sophie D’Andlau, CIAM presented and won a Quickfire Showcase.

In an interview for the Spotlight Series, Anne Sophie announces the new Mergers Arbitrage Fund, CIAM will launch in August 2010 which will focus on officially announced transactions.  The fund will be based in Paris, listed in Luxembourg and denominated in Euros.  However US investors will have a dollar subfund available to them.

When asked how will CAIM hedge Euro exposure, she explained that its isn’t a concern.  They systematically hedge any position as soon as its taken into the portfolio so there is no FX exposure.

Bloomberg reports that China has overtaken Japan to become the second largest global economy and foreign investment continues to increase month on month.

Foreign direct investment in China climbed in July, highlighting the confidence of companies from Volkswagen AG to Merck & Co. in an economy that surpassed Japan in the second quarter.

Investment rose 29.2 percent to $6.92 billion, the Ministry of Commerce said in Beijing today. It was the 12th monthly gain. Estimates of five economists surveyed by Bloomberg News were for increases ranging from 30 percent to 77 percent.

China may contribute a third of the global economic expansion this year, Byron Wien, a senior managing director at private equity firm Blackstone Group LP, said Aug. 11. The International Monetary Fund last month raised China’s growth forecast to 10.5 percent this year, three times the pace of the U.S., as government policies support consumption and investment…. more here

In an interview for the Spotlight Series, Randall explains how the slowdown in the US and EU markets have not effected the emerging markets of China, Japan and other Asian countries.  This polarisation helps APS AM’s Emerging Markets fund, giving investors a competitive edge. He believes that Asia will continue to grow.  While Japan still looks to external demand, increasingly China is shifting to domestic spend stabilising profit growth.

Randall Stewart Khan of APS Asset Management participated in and won a Quickfire Showcase.

In a report from www.efinancialnews.com

The €11.8bn ($15.4bn) Rabobank Pensioenfonds, one of the 100 largest pension schemes in Europe, decided to pull out of funds of hedge funds and put the money into equities, according to its annual report, published last week.  The scheme’s reports show its disaffection with funds of hedge funds began in 2008. The average performance of the five funds of hedge funds it invested in – whose names it did not disclose – was a loss of 12.5%. The report said: “This is better than the return of a large number of other asset classes, but unfortunately there is no absolute positive return. This is disappointing, since hedge funds generally were considered able to give a positive return regardless of market conditions.” more here

The decision to focus on equities is understandable but perhaps they could cast their net a little wider; look at the performance of some of the more niche asset classes.  In a showcase of unusual top performing funds at GAIM International 2010, Philip Hoffman, Chairman, presented The Fine Art Fund as an alternative alternative.

Philip explained to the Spotlight Series, that investing in art is not as alternative as some might think.  Some of the wealthiest families in the world have probably made more from their art investments that all their equities & bonds.  Art is a great long-term value store, it outstrips inflation and is tax efficient.  The Fine Art Fund has traded out every asset at an average IIR of 31%.  And right now, there is a negative correlation between the art market and the equity markets where world record prices are being achieved at a time of economic austerity.

Peter M. Lupoff, Founder TIBURON CAPITAL MANAGEMENT, chaired at session at GAIM International 2010 entitled Credit/Distressed – “The Best Opportunity of a Lifetime” Redux. He was joined on the panel by

Asset Allocators:

• Russell E. Lundeberg, Jr, Principal & CIO, BARRETT CAPITAL MANAGEMENT, LLC
• Ingrid Neitsch, Director, FRM
• Ernesto Prado, CIO & Managing Partner, AYALTIS AG

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and Asset Managers:

• Steve  Moyer, SVP, PIMCO
• Daniel Capocci, Portfolio Manager, DC ADVISORY
• Juan Luis Rivera, Partner, Portfolio Manager - LATAM, MONEDA ASSET MANAGEMENT S.A.

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In an interview with for the Spotlight Series, Peter outlines his own strategies to simultaneously hedge risk, be open to the opportunities of a tumultuous market while remaining agnostic to the broader market.  He also explains why he feels the panelists have a uniformly bearish view to the end of the year.