Newsletter - April 2011
- CEO's Comments
- Exam News
- CAIA Member Poll
- Chapter Notes
- CAIA Out Front
- Smart Moves
- Conversation Pieces
CEO's Comments
Responding to the Global Need for Alternative Investment Knowledge
April 30 will mark my 120th day as CEO of the CAIA Association. In that time, I have traveled to eight countries in Asia and Europe and have attended more than 60 meetings. Although I have much more traveling to do and many more people to meet, I found a groundswell of support for the CAIA mission. It was a heartening reception and a distinct call to action to find new ways to collaborate with our constituency and to be responsive to their energy and support.
One of the first requests we acted on was to remove two time barriers, making it easier for candidates to coordinate their schedules for taking the CAIA exams. First, we eliminated the 3-year rule for passing both levels of the CAIA exams. Effective March 30, future CAIA exam candidates and candidates who have already completed Level I on or before March 2011 can have as much time as they need to pass Level II. Second, after the September 2011 exams, we will open the exam registration cycle to allow candidates to book exams two to three cycles into the future. Currently, candidates can only register for the upcoming exam.
We have formed new relationships with leading hedge fund associations and recognized their commitments to the educational objectives of the CAIA Association by offering their members exam registration discounts. In addition to the Alternative Investment Management Association, we have offered a registration discount program to members of the New York Hedge Fund Roundtable, the California Hedge Fund Association, and the Connecticut Hedge Fund Association. We are also reaching out to other trade associations in different areas of the asset management sector.
I am pleased to report that more than 846 candidates passed Level I and 569 passed Level II exams in March – a pass rate of 71 percent and 58 percent respectively. Especially exciting is the news that three inaugural CAIA Academic Partnership scholarship recipients passed the Level I exam. The recipients are graduate students from HEC Montreal and Clark University.
CAIA scholarships are not only available through the Academic Partnership Program, but also through the CAIA Foundation. Currently, applications are being reviewed for 10 scholarships that will be awarded through the foundation for a program established by 100 Women in Hedge Funds (100WHF), a non-profit organization for professionals in the alternative investments industry, and by Pacific Alternative Asset Management Company, LLC (PAAMCO), an independent fund of hedge funds investment firm. Recipients will be announced next month and will sit for the September CAIA Level I exam.
We are actively working on many other initiatives for our constituents and I am sure we will discover more opportunities as I continue my travels and meetings and as we execute the CAIA Association's global business plan. I look forwarding to keeping you apprised of our successes.
Florence Lombard
Chief Executive Officer
CAIA Exam News
CAIA Offers Exam Registration Discount through May 16
Registration is now open for the September CAIA exams. Candidates who register by May 16 will receive a 10 percent early registration discount. The CAIA exams are administered in computerized format at proctored test centers around the world. Level I exams will be held September 19 – 30; Level II will be held September 12 - 23.
March 2011 Exam Results Released
General exam results for each candidate who sat for the Level I or Level II exam in March have been posted on each candidate's profiles page. Level II candidates who passed and have the required professional experience are qualified to apply for membership.
CAIA Lifts 3-Year Window for Completing Exams
The CAIA Association has lifted the policy requiring professionals to pass the Level II exam within three years of passing the Level I exam. The change went into effect March 31, 2011 and covers candidates who have already completed Level I on or before March 2011, as well as future candidates.
CAIA Member Poll
Will Agricultural Commodities Perform Better than Oil in 2011?
Commodity prices posted substantial gains since September 2010. Which commodity sub group do you expect to perform best in 2011?
According to the results of a CAIA member poll in March, agricultural commodities will perform better in 2011 than oil, precious metals and industrial metals. The poll question was submitted by CAIA member Cédric Spahr and was posted in the March issue of the CAIA Member Update newsletter and on caia.org.
Chapter Notes
Educational and Networking Events
For a complete listing of CAIA chapter events, visit the events page on caia.org.
CAIA San Francisco Trivia Night
Thursday, April 21, Elephant and Castle
CAIA Iberia Educational Event
Thursday, April 28, Instituto de Estudios Bursátiles (IEB)
Pension Funds Management. A Current Hot Issue or an Eternal Challenge?
CAIA Switzerland Educational Event
Thursday, April 28, Park Hyatt Zurich
Insurance-Linked Investing in Turbulent Times: Outlook & Opportunities
Dr. Hilary Paul, Senior Portfolio Manager, Insurance Linked Investments, Clairden Leu
CAIA Luxembourg Chapter Launch and Educational Event
Thursday, May 5, Abbaye de Neumünster
What We Don't Know About Hedge Fund Research
Bill Fung, Visiting Research Professor, Hedge Fund Center, London Business School
CAIA London Networking Event
Tuesday, May 10, The Landmark London
In conjunction with Global ARC
UPCOMING MEMBER COMMUNITY EVENTS
CAIA Networking Event in Houston, TX
Thursday, April 28, Details TBA
CAIA Educational Event in Amsterdam
Tuesday, June 7, ABN Amro Headquarters
"Looking at the Post Crisis: A New Equilibrium for Private Equity"
CAIA Out Front
Institutional Investor 17th Annual Global Hedge Fund Summit
May 1, 8:00 a.m. – May 3, 4:30 p.m.
The Fairmont Southampton, Southampton, Bermuda
Christopher Holt, CAIA's Director of Industry Relations (AMRS), will be the moderator on May 2.
The 2nd Annual Global ARC London
May 9, 7:30 a.m. – May 11, 12:30 p.m.
The Landmark Hotel, London
Christopher Holt, CAIA's Director of Industry Relations (AMRS) will be the chair on May 9.
Smart Moves
James Burron, CAIA, recently incorporated his research and writing business and launched a new company website. As principal of Burron Consulting, Inc., he will continue to produce Briefing Notes for Global ARC and other conferences and events as well as thought-pieces, articles and papers for select clients in the alternatives area.
Burron has more than 15 years of experience in securities and financial products sales. More recently, he has been involved in product origination on global platforms. Burron worked in South Korea where he brought to market some of the first fund of hedge fund trades in the country. He also created innovative offshore/onshore structured products with a major bank in India.
Burron gives credit to his CAIA designation for his career development: "CAIA has been invaluable to me in my progress through the industry." According to Burron, the knowledge he has gained through the CAIA program has helped him create products and receive job offers. "I am constantly 'in the loop' on breaking developments from both my earlier study (contacts) and the many professional contacts I've developed among fellow designees. CAIA has been a boon to my career and network like nothing else I could imagine."
Burron is a CAIA Canada Chapter Executive. In addition to his CAIA designation, which he earned in October 2006, he is a Fellow of the Canadian Securities Institute (FCSI).
Eric T. Huff, CAIA, recently became a shareholder of LCG Associates. He was rewarded ownership in his firm for demonstrating a "commitment to excellence and honesty."
Huff joined LCG in 2006 as a consultant. His responsibilities include developing and providing investment-related services, including investment strategy, manager due-diligence and research, and special research projects and advice. According to Huff, "Alternative investment strategies continue to play an important role within our client portfolios. The CAIA program provided a solid foundation and knowledge base needed to make sound investment decisions in the ever evolving alternatives arena."
He was previously with Hewitt Investment Group as a Senior Investment Analyst. He was responsible for providing investment education, conducting qualitative and quantitative due diligence with a focus on private real estate investments, and analyzing performance. He started his career as a Business Analyst for Hewitt.
Huff has been a CAIA member since October 2009. He graduated from the University of Georgia with a B.B.A. in Finance.
José María Martínez-Sanjuán, CAIA, has been appointed Global Head of Fund Selection at Banco Santander. In his new role, he manages a team of analysts around the world that recommends third party funds for the group.
Prior to Banco Santander, Martínez-Sanjuán was in charge of the Fund Selection and Alternative Investment Department at Banco Banif, the private banking arm of Santander in Spain. He also worked for other banks including Banco Urquijo, Caja Madrid, and Barclays Bank.
A member of the CAIA class of September 2009, Martínez-Sanjuán explains, "My CAIA designation has provided me with valuable professional development and networking opportunities. I believe the CAIA designation speaks to our clients of my commitment to achieving excellence and maintaining the required expertise in the application of alternative investments."
Martínez-Sanjuán received his BS in Economics from Universidad Complutense de Madrid and a Masters in Finance from ICADE University.
Thomas Wolf, CAIA, is running for the mayor of Denver, Colorado. He has decided to "strike at the root of the problem" by applying his business experience to deal with the issue of public pension funds. A self-described "free" candidate, he is not accepting any campaign financing
Since beginning his career with J.P. Morgan in 1986, he has worked in a variety of corporate and entrepreneurial capacities. Wolf worked for CFSB and Morgan Stanley in London primarily selling U.S. equity products to European institutions. Returning to the U.S., he focused on active and passive investments in private equity and worked in corporate venture capital. More recently, he has been involved in the sales of private securities and alternative funds and has completed or been active in fund mandates that cover a variety of hedge strategies (RV global macro, equity market neutral, European equity long/short, and merger arb), venture capital, buyout, real estate and infrastructure.
A CAIA member since April 2007, Wolf writes, "The CAIA angle… is the ethos of continuous learning, in an attempt to keep pace with a wildly dynamic global capital market, and the novel guess that some of this rational quant-based thought may be applicable to municipal governing."
Conversation Pieces
CAIA Launches Chapter in Luxembourg
On May 5, the CAIA Association will launch its newest chapter in one of the leading financial centers in the Eurozone. CAIA Luxembourg is the CAIA Association's 14th global chapter and its 6th chapter in Europe. Guest speaker Bill Fung, visiting research professor at the Hedge Fund Centre, London Business School, will give a presentation titled "What We Don't Know About Hedge Fund Research." The launch program will begin at 6:15, at Abbaye de Neumünster, 28 rue Münster, Luxembourg.
International Group Visits CAIA Headquarters
Twenty-seven CAIA members from around the world gathered at the CAIA Association headquarters in Amherst, Massachusetts, for the 12th semi-annual Grading Jamboree. Five countries were represented for the very first time: Germany, Portugal, Saudi Arabia, South Africa, and United Arab Emirates. The volunteers spent two days grading responses to essay questions on the March CAIA Level II examinations.
WebEx Information Session for Finance Professionals
Due to increased interest in the CAIA program, the CAIA Association holds live, 30-minute online information sessions every month on the CAIA curriculum and exams. The program is led by a senior CAIA representative and covers the program structure, curriculum, exam format, membership profile, and fees. The next information session is on April 21 with Christopher Holt, CAIA Association Director of Industry Relations – Americas.
Pierre Saint-Laurent Touts CAIA Curriculum in Video
Pierre Saint-Laurent, CAIA, Faculty Lecturer at HEC Montreal, has made the CAIA curriculum required knowledge for his students. In a video, he explains how CAIA can help his students throughout their careers. Saint-Laurent is also featured in Alternatives magazine.
Employers Tap Pre-qualified AI Professionals through CAIA Job Board
The CAIA Job Board is a valuable online resource for employers who want to tap professionals with alternative investment expertise, according to Maia Porter, Director of CAIA Member Services.
"By posting open positions on the CAIA Job Board, employers gain access to a CAIA member-base of more than 4,600 pre-qualified AI experts," she said.
CAIA members have an average of 10 years' experience in leading global firms, national pension and superannuation funds, endowments and foundations, and family wealth offices. CAIA members serve as CIOs, risk analysts, investment consultants, financial advisors, institutional portfolio managers, hedge fund managers, and more.