U.S. SEC orders UK’s BlueCrest to pay $170 million to harmed investors [Reuters]Hedge fund BlueCrest ordered to pay $170 million after ‘misleading’ investors [MarketWatch]BlueCrest Capital Management to Pay $170 Million to Settle SEC Claims [WSJ]. BlueCrest Capital Management, once one of Europe’s largest hedge funds with $37 billion in assets under management at its peak, was the real … One day they will perhaps be the ones front-running the flesh-and-blood traders. The fund generated returns of 50% in 2016, 54% in 2017, 25% in 2018 when the average hedge fund lost money, and 50% in 2019. The Enforcement Division also wishes to thank the UK’s Financial Conduct Authority for its assistance. Winterflood Investment Trusts, the broker and analyst has released a research note on BlueCrest AllBlue, the fund-of-funds investment company that invests in the different hedge fund strategies of the BlueCrest hedge fund group. The $170 million will be distributed to investors, the agency said. That delay caused “slippage,” particularly during volatile markets because the algorithm waited too long to respond to sudden market moves, the order said. The scalability of the system also allowed BlueCrest to subsequently upgrade its Calypso platform to version 13 with minimal impact on the business. But since that day is not today, BlueCrest is happy that it’s not in the business of managing money for people the SEC says it can’t lie to anymore. 5 Flickr 6LinkedIn 7 Pinterest 8 Email Updates. “BlueCrest investors were marketed a fund with exceptional trading talent but instead got a fund with an undisclosed algorithm that performed worse than those touted traders.”. BlueCrest Capital Management to Pay $170 Million to Settle SEC Claims ... As you can guess, Warren Buffett’s #1 wealth building strategy is to generate high returns in the 20% to 30% range. Hedge fund sues over being asked about its 9/11 and NFL concussion-based portfolio. If they’d just unfreeze those assets, his little bro would quickly get them back to his alleged victims, he’s pretty sure. HM Revenue & Customs has been ordered to wrap up a seven-year investigation into the tax returns of 175 London partners at hedge fund BlueCrest Capital Management. Ovata Capital, the multi-strategy hedge fund set up by former BlueCrest traders, posted its best-ever annual performance since its inception in 2017. Strategy Systems, BlueCrest Capital Management. The Enforcement Division appreciates the assistance of staff from the Office of Compliance Inspections and Examinations, including the Quantitative Analytics Unit, and the Division of Economic and Risk Analysis. You can view more information on Bluecrest Capital Management including private fund info, contact info, top management and executives, website, email addresses, and more below: Bluecrest Capital Management UK LLP The Company manages significant institutional assets across a number of diversified strategies. The Securities and Exchange Commission today announced that UK-based investment adviser BlueCrest Capital Management Limited has agreed to pay $170 million to settle charges arising from inadequate disclosures, material misstatements, and misleading omissions concerning its transfer of top traders from its flagship client fund, BlueCrest Capital International (BCI), to a proprietary fund, BSMA Limited, and replacement of those traders with an underperforming algorithm. ... Convertible bonds/preferred and equities as part of a Convertible Arbitrage Strategy. The SEC will distribute the $170 million to harmed investors. The current minimum investment for Bluecrest Multi Strategy Credit Master Fund Limited is $1000000. As set forth in the order, members of BlueCrest’s governing body, which made the relevant decisions regarding BSMA, had a 93 percent ownership interest in BSMA that peaked at $1.79 billion compared to its ownership interest of approximately $619 million in BCI. Bluecrest Capital Management is a hedge fund company based in St Helier, Jersey. Except when it is a surprise. Resource #2: BlueCrest Capital Management LLP (“BCMLLP”) is an alternative asset management company based in London, managing significant institutional assets across a number of diversified strategies. Regulation. The two founders of BCMLLP, Michael Platt and William Reeves, were both managing Directors and senior proprietary traders at JP Morgan, who left to establish Blue Crest in 2000. The Guernsey based trust is structured as a feeder fund for the BlueCrest AllBlue based in the Cayman Islands. Like BCI, BSMA’s largest capital allocations were always to … One day, perhaps, the robots will be as good or better than the best humans at managing hedge funds. 3 Market Data Mechanics The system was built in three layers: (1) An event layer that includes the data sources and a core event-processing engine from StreamBase to extract, collate and enrich the source data; (2) The storage layer As set forth in the order, members of BlueCrest’s governing body, which made the relevant decisions regarding BSMA, had a 93 percent ownership interest in BSMA that … Bluecrest Capital Management LTD is a hedge fund with 27 clients and discretionary assets under management (AUM) of $86,644,351,099 (Form ADV from 2018-06-06). According to the order, BlueCrest transferred a majority of its highest-performing traders from BCI to BSMA, and assigned many of its most promising newly hired traders, eligible to trade for either fund, to BSMA. “BlueCrest repeatedly failed to act in the best interests of its investors, including by not disclosing that it was transferring its highest-performing traders to a fund that benefitted its own personnel to the detriment of its fund investors,” said Stephanie Avakian, Director of the SEC’s Division of Enforcement. In 2015, Bluecrest announced its plans to return all outside capital to investors and transition into a private investment partnership that would manage money for its partners and employees. According to the order, the algorithm generated significantly less profit with greater volatility than the live traders. BlueCrest initially focused on trading interest rates and using computer algorithms to capture trends in bonds and commodities. The company replaced those traders in the client fund with an algorithm which “generally underperformed” the traders, the SEC alleged. 1 Twitter 2 Facebook 3RSS 4YouTube Prior to founding their own fund, both … The SEC’s investigation was conducted by Asset Management Unit members Marilyn Ampolsk, Marie DeBonis, Brian Fitzpatrick, and Luke Pazicky, and supervised by Ranah Esmaili. First, in 2011, BlueCrest created a leveraged proprietary fund, BSMA, to trade the personal capital of BlueCrest personnel. The Securities and Exchange Commission (SEC) alleged that in 2011 BlueCrest created the hedge fund to invest staff capital, to which it transferred top-performing traders from its flagship client fund. Michael Platt’s BlueCrest Capital Management pulled back from a complex debt-trading strategy that led to losses and the departures of at least two traders, people familiar with the matter said. “This settlement holds BlueCrest responsible for its conduct and furthers the SEC’s goal of returning funds to harmed investors.”, “An adviser’s disclosures to investors and prospective investors in funds they manage must be accurate,” said Adam Aderton, Co-Chief of the SEC’s Asset Management Unit. The SEC’s order finds that BlueCrest willfully violated antifraud provisions of the Securities Act of 1933 and Investment Advisers Act of 1940 as well as the Advisers Act’s compliance rule. Bluecrest Capital Management is a hedge fund that manages 110.8 BN dollars in regulatory AUM and has 0 employees, of which 0 perform investment advisory functions. The firm returned over 18% net of fees with all business units contributing to the fund’s gains, partner Rodrigo Rodriguez told Financial News in … Hedge Fund and Insider Trading News: Citadel LLC, Coatue Management, Bridgewater Associates, BlueCrest Capital Management, Wellington Management, RingCentral Inc … Washington D.C., Dec. 8, 2020 —. William Reeves and Michael Platt founded alternative asset management company BlueCrest Capital Management LP in 2000. The algorithm failed to perfectly replicate the human traders’ decisions because it followed their moves one day later, the SEC said. U.S. SEC orders UK’s BlueCrest to pay $170 million to harmed investors, Hedge fund BlueCrest ordered to pay $170 million after ‘misleading’ investors, BlueCrest Capital Management to Pay $170 Million to Settle SEC Claims. According to the SEC, BlueCrest Capital Management, based on the isle of Jersey, failed to disclose to investors the existence of a $1.5 billion hedge fund owned by executives, called BSMA Limited. BlueCrest failed to adequately disclose, and made misstatements and omitted facts concerning, the proprietary fund’s existence, the movement of traders, and related conflicts of interest, the SEC alleged. The SEC will distribute the $170 million to harmed investors. Or just choose not to have investor, but do that before you’ve done something the SEC can fine you for. As with BCI, the largest capital allocations for BSMA involved rates and relative value dealing – the trading strategies where Platt made … BlueCrest Capital Management London–based BlueCrest Capital Management, founded by Michael Platt and William Reeves with $117 million in … BlueCrest Capital Management was founded in 2000, focused on fixed income macro trading. Without admitting or denying the SEC’s findings, BlueCrest agreed to a cease-and-desist order imposing a censure, and must pay disgorgement and prejudgment interest of $132,714,506 and a penalty of $37,285,494, all of which will be returned to investors. If you’ve got the good stuff, they’ve got the green. Then it can both drive investors away, and cause all sorts of other problems, as well, because even if Michael Platt tried to pass it all off as a joke, the Securities and Exchange Commission is not laughing. “During the 15 years we operated as a client-facing hedge fund manager, we generated returns of more than $22 billion for our investors,” she added, while noting that in 2015, BlueCrest stopped managing the assets of outside investors. According to the SEC’s order, BlueCrest created BSMA to trade the personal capital of BlueCrest personnel using primary trading strategies that overlapped with BCI’s. The order also finds that BlueCrest failed to disclose that it reallocated the transferred traders’ capital allocations in BCI to a semi-systematic trading system, which was essentially a replication algorithm that tracked certain trading activity of a subset of BlueCrest’s live traders. The product provides access to a diversified portfolio of six of BlueCrest’s liquid hedge fund strategies, operating across one open and transparent trading … It isn’t a surprise that some hedge funds keep their best strategies to themselves, and it certainly hasn’t kept investors away. Their last reported 13F filing for Q3 2020 included $2,734,858,000 in managed 13F securities and … Bluecrest Multi Strategy Credit Master Fund Limited is a hedge fund operated by Bluecrest Capital Management Limited and has approximately $63.7 million in assets. Or one with them, apparently. The order finds that BlueCrest was able to keep more of any performance fees generated by the algorithm than by live traders. Based in London, BlueCrest Capital Management LLP is a market leading multi-strategy alternative asset manager. The fund's latest filing disclosed 1BN in positions, representing 1% of the manager's regulatory AUM. 2 percent of … The order finds that, over more than four years, BlueCrest made inadequate and misleading disclosures concerning BSMA’s existence, the movement of traders from BCI to BSMA, the use of the algorithm in BCI, and associated conflicts of interest. Bluecrest Capital Management serves clients internationally. The manager's has disclosed holdings from 12/31/05 to 06/30/20. The Securities and Exchange Commission (SEC) alleged that in 2011 BlueCrest created the hedge fund to invest staff capital, to which it transferred top … They operate 7 private funds and have approximately $62.2 billion in total assets under management (AUM). Product Controller at BlueCrest Capital Management, LLP Greater New York City Area 274 connections. According to the SEC’s order, BlueCrest created BSMA to trade the personal capital of BlueCrest personnel using primary trading strategies that overlapped with BCI’s. STAY CONNECTED Never trust a South Florida money manager without an ex-wife and BMW. Look to BlueCrest for the world’s most comprehensive line of production printers, inserters, sorters, parcel solutions and software. In its Order, the SEC found that BlueCrest created BSMA to trade the personal capital of its personnel using primary trading strategies that overlapped with BCI’s. The SEC found that BlueCrest Capital Management misled clients over … BlueCrest to pay $170m after replacing managers with faulty algo. Ladies and gentlemen, the back-seat of cab comedic stylings of Michael Platt! The order finds that BlueCrest did not disclose certain material facts about the algorithm to BCI’s independent directors. In 2013 it expanded into trading equity to compete with Millennium Management LLC and SAC Capital Advisors LLP. BlueCrest Capital Management LLP ("BCM LLP") is an alternative asset management business based in Guernsey, managing significant institutional assets across a number of diversified strategies. In 2011, BlueCrest created a leveraged proprietary fund – BSMA – to trade the personal capital of its principals. This enables BlueCrest to capitalize and manage the complexities of the new OTC derivatives marketplace and address new front office, operating and connectivity issues while managing margin compressions and capital costs across business lines. 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