Is Malta a Hedge Fund Haven?

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Island in the Mediterranean Sea – South of Sicily (Italy)

By Dr. David Edward Marcinko MBA CMP

[Editor-in-Chief]

OK; I’ve written about hedge funds before, on this ME-P and in our www.MedicalBusinessAdvisors.com print publications for various textbooks, handbooks, white papers and journal. And, we discuss the concept in our online educational www.CertifiedMedicalPlanner.org program, as well. Some medical professionals love them, and some financial advisors use them in their work; others do not.

Of course, I’ve written frequently about my colleague – the now retired and newly anointed philanthropist  and uber-hedge fund manager Mike Burry MD; ad nauseam.

Link: https://medicalexecutivepost.com/2010/03/24/video-on-hedge-fund-manager-michael-burry-md/

But, now there is a new wrinkle on the island that I first visited about ten years ago, while on a working vacation

Rising Visibility

Malta–yes, Malta–has quietly leveraged the rising transparency imperative to attract hedge funds. There was a time when the quaint island sought to play on the traditional terrain, offering anonymity and a “laissez-faire regulatory regime,” not to mention very low taxes, as in no capital gains taxes and no taxes on dividends; all while English speaking and USD currency denominated.

Maybe back then, no more today, if this essay is to be believed.

Link: http://www.bloomberg.com/news/2012-01-05/malta-lures-connecticut-hedge-funds-with-300-days-of-sun-aided-by-eu-rules.html

Image 1

Why Malta?

Link: http://www.firstgozo.com/maltafacts.htm

Malta

Assessment

While many leading domiciles for offshore hedge funds remain in the Caribbean–notably the Cayman Islands, the British Virgin Islands, Bermuda, and the Bahamas–the island of Mata is drawing attention, especially from European funds.

Conclusion

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16 Responses

  1. Falcone’s Harbinger Hedge Fund Lost 47%

    Dr. Marcinko – This was a very timely post.

    But, did you know that Phil Falcone’s Harbinger Capital Partners LLC lost 47 percent for investors in his main hedge fund last year, according to a person familiar with the results.

    http://www.fa-mag.com/pw-mag/pw-news/9900-falcones-harbinger-hedge-fund-lost-47-on-lightsquared-in-2011.html

    Winston

    Like

  2. More Malta in the News

    An ex-Obama official might not back Obama this year, citing birth-control decision. In fact, Douglas Kmiec, the president’s former ambassador to Malta, said he is strongly opposed to Obama’s new health insurance [HI] manadate.

    http://thehill.com/blogs/ballot-box/gop-presidential-primary/208819-ex-obama-official-may-not-back-president-this-year-citing-birth-control-decision

    Does this have any affect on hedge fund managers?

    Donna

    Like

  3. Hedge funds like Dodd Frank?

    Dr. Marcinko – In the immediate aftermath of the financial crisis, hedge fund executives were worried that they would be scapegoated, painted as villains for the market gyrations and the implosion of top broker dealers.

    But, it gradually became clear that alternative investment providers fared well from a regulatory perspective.

    http://www.fiercefinance.com/story/surprise-hedge-funds-dodd-frank/2012-04-13?utm_medium=nl&utm_source=internal#ixzz1sD3Mxwhe

    Reggie

    Like

  4. Hedge Funds

    Dr. Marcinko – Private Equity (PE) funding may have had its heyday prior to the bust of 2008 and may never again attain its $58 billion peak of 2007. What do you think?

    Bernard

    Like

  5. JPMorgan CEO Jamie Dimon

    We were ‘dead wrong’ to dismiss trading concerns.

    http://bottomline.msnbc.msn.com/_news/2012/05/13/11684052-jpmorgan-ceo-jamie-dimon-we-were-dead-wrong-to-dismiss-trading-concerns?lite

    No rules of the road for hedge funds.

    Carter

    Like

  6. Carter

    CIO Ina R. Drew, a 55-year-old banker who worked at Chase for three decades just resigned.

    Is Jamie next?

    Festus

    Like

  7. Festus and Dr. Marcinko,

    I think it is time for Jamie Dimon to go!

    http://dealbook.nytimes.com/2012/05/10/others-in-the-spotlight-after-jpmorgans-big-trading-loss/

    Victor

    Like

  8. U.S. Said To Start Probe Of $2 Billion JPMorgan Loss

    Victor – The US Department of Justice is said to have begun a criminal investigation of JPMorgan Chase & Co.’s $2 billion trading loss.

    http://www.fa-mag.com/fa-news/10967-us-said-to-start-probe-of-2-billion-jpmorgan-loss.html

    Stosh

    Like

  9. Hedge Results

    After a decent start to the year, hedge funds definitely hit a rather jarring speed bump. The average fund lost nearly 3 percent, the worst month since September.

    http://www.fiercefinance.com/story/hedge-fund-returns-down-may/2012-06-12?utm_medium=nl&utm_source=internal

    But, that’s not as bad the Standard & Poor’s 500 index, which fell 6 percent for the month, however.

    Sterling

    Like

  10. Do Hedge Funds Create Jobs?

    There has been an ongoing discussion surrounding hedge funds and their ability – or lack thereof – to create jobs.

    http://www.financial-planning.com/blogs/hedge-funds-job-creation-financial-services-industry-2680297-1.html?ET=financialplanning:e11316:86235a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Daily__082712

    Do they really have the capacity to help the job market? And if they do, what jobs are hedge funds producing?

    By Dr. David Edward Marcinko MBA CMP™
    http://www.CertifiedMedicalPlanner.org
    [Editor-in-Chief]

    Like

  11. The High Water Mark

    Some hedge funds feature a highwater mark provision, also known as a ”loss-carryforward” provision. As with the hurdle rate, potential investors should consider the highwater mark a form of protection. A high water mark is an amount equal to the greatest value of an investor’s capital account, adjusted for contributions and withdrawals.

    The high water mark ensures that the hedge fund manager charges a performance incentive fee only on the amount of appreciation over and above the highwater mark set at the time the performance fee was last charged. The current trend is for newer funds to feature this highwater mark, while older, larger funds may not feature it.

    Dr. David Edward Marcinko MBA CMP™
    http://www.CertifiedMedicalPlanner.org

    Like

  12. Hedge fund fees will sink in 2015?

    Dr. Marcinko – Taken together, the 25 highest paid hedge fund managers took home $21 billion last year, up from $12 billion in 2009, according to Alpha magazine. But, those paychecks won’t last.

    On average, hedge funds have underperformed the market for each of the past five years — the longest stretch on record. And, this fall Calpers said it was selling all of its hedge fund positions and banks and the mutual fund industry are already creating much cheaper alternatives.

    Recently, billionaire Paul Tudor Jones cut his fees to 2.75% a year on all his clients’ assets, and 27% of the annual gains. That’s still shockingly high, given that Jones is on a multi-year cold streak that could chill the Arctic.

    So, will other hedge fund managers have to go much lower to keep their clients from hitting the exits?

    Dr. Richardson

    Like

  13. Michael Zhuang’s life changing story
    [Also a story of MZ Capital]

    Play video: https://www.youtube.com/watch?v=lJgnStMNZss

    Michael Zhuang founded MZ Capital as a hedge fund, to make a lot of money. Then one day, an unexpected phone call changed all that … Link: http://www.mzcap.com

    Ann Miller RN MHA

    Like

  14. How hedge-fund geniuses got beaten by monkeys — again

    The dumbest simple index will beat the smartest guys on the Street.

    http://www.msn.com/en-us/money/markets/how-hedge-fund-geniuses-got-beaten-by-monkeys-%e2%80%94-again/ar-AAc6A4w?ocid=iehp

    Sterling

    Like

  15. The battle to house crypto companies

    Bermuda, Malta, Gibraltar, and Liechtenstein are fighting to make themselves the most legally attractive for cryptocurrency businesses. (NYT)

    Dr. David E. Marcinko MBA

    Like

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