Main News

 

Subprime Geopolitics
http://www.stratfor.com/products/premium/read_article.php?id=293933

 

Hedge fund losses prompt exits as deadline looms
Reuters - USA
"We are seeing a 'shoot first and ask questions later' mentality among many investors," said Philippe Bonnefoy, chairman of hedge fund advisory group Cedars ...
See all stories on this topic

 

DWS keeps ABS fund open as US sub-prime crisis ebbs
http://www.ipe.com/news/DWS_keeps_ABS_fund_open_as_US_sub_prime_crisis_ebbs_22955.php

 

HF Subprime Liquidations Could Hit Crude-Oil Futures
Cattle Network - Monday August 13, 08:33 BST

 

 

Reuters.uk - UKMurray said his Global Financials Hedge fund had removed most of its long and short positions and had built up cash. Shorting means betting on a lower price ...

Even After $1 Trillion Goes Poof, It Ain't Over
The markets experience a "mini-Minsky moment." But there are more to come.
http://online.barrons.com/article/SB118669187848093406.html?mod=djemBF

NEW YORK (HedgeWorld.com)—While the U.S. subprime mortgage meltdown and the unraveling of the mortgage bubble represents a major credit event for some, for others the carnage is merely a healthy correction. ......

 

NEW YORK (HedgeWorld.com)—The downside protection offered by a number of well-known quantitative hedge funds seems to have faltered this month, as reports of astoundingly large losses from around the globe made their way through the rumor mills. ......

 

NEW YORK (Reuters)—Global stock markets fell and high-yielding currencies lost value on Friday, even as central banks pumped extra cash into the financial system to help temper fears of a liquidity crisis gripping investors. Before U. ......

THE STRIKING PRICE DAILY  By STEVEN M. SEARS
Fear and Loquacity in the Markets
That traditional measure of volatility, the VIX, has soared to a new 52-week high, yet there is talk among traders that the worst may be over.
http://online.barrons.com/article/SB118669183885393421.html?mod=djemBF

 

 

Market Watch Mon, 13 Aug 2007 3:15 PM PDTSAN FRANCISCO (MarketWatch) -- Some of the largest firms in the $1.5 trillion hedge-fund industry have been hit this month by big losses among so-called quantitative funds, which use computer models to generate trading ideas.

The great unwind -- [at FT.com]
FT.com
8/13/2007 8:25:35 AM

Global Issuers
Global Bond Markets' Weakest Links And Monthly Default Rates
The ongoing volatility in the credit markets raises the risks associated with the default outlook in 2008. The current factors indicate mixed risks, with many of the conventional leaders of default risk still in benign territory. For example, the proportion of distressed credits in the U.S., defined as speculative-grade rated issues that have option-adjusted spreads of more than 1,000 bps, was near the all-time low at 0.9% in July, but it is expected to rise in line with rising credit quality awareness. Liquidity, which was a mitigating factor in the corporate credit environment, has receded.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWRRUQTVsLgHxhilpuHQJhuV2VSC

 

KKR gets request for documents
The firm said the request is in connection to the Justice Department's ongoing investigation of private equity firms. 
... READ FULL STORY >>>

 

Sugar-fuelled superpower
Our correspondent is amazed by the Amazon
Full article

 

US - The Teachers’ Retirement System of the State of Illinois (TRS) has revamped its investment strategy resulting in contract awards and managerial searches. The overhaul means the US$ 41.8bn organisation is eliminating core investment strategies in its fixed income portfolio as part of the recommendations contained in a fixed income structure study adopted by the board of trustees

 

Iraq Hedge Fund Launches
FINalternatives - New York,NY,USA
Iraq Fund Management has launched its first hedge fund, offering investors exposure to that war-torn country. The Iraq Fund, which began trading on Aug. ...
See all stories on this topic

 

Friday , 10 Aug 2007
Fear stalks the streets in London, New York City, and elsewhere.

 

China reaffirms faith in US dollar assets
China on Sunday sought to repair fallout from reports it could use its $1,330bn (?970.9bn) foreign exchange holdings to put pressure on Washington and the dollar with a statement affirming the importance of the US dollar as a global reserve currency.  (Financial Times)
http://mail2.efnmail.co.uk/r/311474/MTk4MTI1OjE0Nzg4/

 

RAB Capital defies short sellers
UK-quoted RAB Capital's shares have risen to four times their 2004 issue price while the group has claimed a 400% increase in its assets under management, although its rivals continue to bet on a fall.
http://mail2.efnmail.co.uk/r/311324/MTk4MTI1OjE0Nzg3/

 

Derivatives give firms an advantage with risk-averse investors
Asset managers with ready access to balance sheet capital through a public listing or ownership by a large bank or insurer will enjoy a competitive advantage, according to consultants.
http://mail2.efnmail.co.uk/r/311325/MTk4MTI1OjE0Nzg3/

 

Fears grow of NIBC meltdown amid talk of sale
Investors in NIBC, the Dutch bank owned by former Goldman Sachs banker Christopher Flowers, were unable to buy protection against a default of the company's debt on Friday amid concerns about the bank's health and rumours that it was being prepared for a sale. JC Flowers, the private equity firm that owns NIBC with a consortium of fellow investors, is believed to be preparing to sell the embattled Dutch bank.
http://mail2.efnmail.co.uk/r/311380/MTk4MTI1OjE0Nzg3/

 

Risk model changes to reflect pension investment trends
Pension funds' use of liability-driven strategies is one of several trends expected to influence risk projections at the Pension Protection Fund.
http://mail2.efnmail.co.uk/r/311334/MTk4MTI1OjE0Nzg3/

 

In a Spiraling Credit Crisis, Large Mortgages Grow Costly -- [at NY Times]
By FLOYD NORRIS and ERIC DASH New York Times
08/12/2007 01:33:28

_________________________________________________________________________

Yield Curve Corner

 

The Bernanke Agenda: Just Say No
BusinessWeek - USA
by Peter Coy Cool, calm, and collected, Federal Reserve Chairman Ben Bernanke is driving Wall Street batty. When traders scream about a recessionary "credit ...
See all stories on this topic

 

_________________________________________________________________________

Natural Disaster Corner

 

Climate Prediction  http://www.nws.noaa.gov/predictions.php

World Meterological Organization http://severe.worldweather.org/

Tornadoes: http://www.disastercenter.com/tornado.htm

Great Sat Pictures of events: http://www.osei.noaa.gov/Events/Current/TRCflossie225_G11.jpg

 

_________________________________________________________________________

Iranian Situation

 

 

Two Belgian tourists abducted in Iran
AFP via Yahoo! News Mon, 13 Aug 2007 11:26 AM PDT
Two Belgian tourists have been abducted by bandits in the southeast of Iran while driving on a road notorious for its attacks on travellers by armed criminals, officials said on Monday.

 

Iran ends probe into 2 Iranian-Americans
AP via Yahoo! News Mon, 13 Aug 2007 5:36 AM PDT
Iran's judiciary has concluded investigations into two detained Iranian-Americans accused of conspiring to destabilize the country, a top judiciary official said. But no decision has been made on whether they will be put on trial, he said.

 

_________________________________________________________________________

Opalesque’s Corner

 

- Opalesque Exclusive: Singapore funds prove not all is bleak for quant funds, Short book adds to Harbinger Distressed fund`s winning streak, up 19% in July,CypressTree Leveraged Alternative Income Fund reports unprecedented 17.91% loss for July, however maintains positive outlook due to  `sound fundamental credit worthiness` of portfolio
- Renaissance Institutional Equities Fund down 7% YTD through Aug. 8, Renaissance Technologies Letter To Investors,  Tykhe Investor Letter (funds down 17% to 33%), JP Morgan`s Highbridge fund hammered, AQR said to lose 13% this month, AQR cuts exposure to computer-driven stock selection, collects $1bln funds in a day to exploit bear market, Goldman Global Equity Fund fell 13.9% past 12 months, people say,Barclays Global Investors`32 Capital Fund`s performance `challenging` but no large-scale redemption requests,  Goldman expected to make statements on funds,  UBS may get big hit from Dillon Read legacy positions` losses
- `Average quantitative fund manager down about 15%`: 4x leverage adds to woes of stat arb funds as models, markets `behave in opposite way` to backtests, predictions
- Britain`s worst day in four years: Hedge funds, prime brokers blamed, Pack mentality among hedge funds fuels market volatility, quant guys with `all the same strategies`
- Opalesque Exclusive: What happened last week - Expert comments
- Website introduces Hedge Fund Implode-o-Meter to list `imploded` and `ailing`funds, Finance sector hedge fund goes cash, `it won`t be over in a week or two`, sees financial crisis
- CNBC`s Roben Farzad receives NakedShort`s Moron du Jour award for Renaissance clip (Standing ovation)
- Background: `Sometimes bad things happen to nice people`: The rise and sudden fall of Sowood`s Jeff Larson
- Analysis:  Mini-crisis in the commercial paper market: `` Don`t show me anything east of a  212 area code`
- Dodd calls for subprime mortgage law to boost `accountability`
- Threadneedle eyes hedge fund growth with Convivo takeover
- Opalesque Exclusive: Hedge fund Rising Stars revisited -  J. Alan Lenahan explains the `six key attributes of successful management`, sees  customised portfolios as natural evolution without FoF fees
- Deutsche offers portable alpha to the U.S. masses,  SGAM launches French hedge fund replication mutual fund, Centrecourt launches best ideas debt fund, Ecofin launches third hedge fund, turning to utilities, Over S$100m raised for Singapore retail Global Climate Change Fund
- Third party marketer Pinnacle offers Global Macro-CTA Investor Database
- Kat:  Strict hedge fund replication is an illusion,  Portrait: Partners Group has a lot to offer
- Scepticism clouds 130/30 concept,  The 130/30 Club: Experts make the case, most allocations to 130/30s stem from termination of equities mandates
- Schumer targets hedge-fund tax loophole
- Bear safe from litigation-for now, Bayou investors who got out early lose their bid for pretrial victory, Prominent Chicago family sues Ritchie hedge fund, U.S. seeks freeze on Lake shore assets, CFTC: ` a case about fraud and deceit`, pressure mounts on ex-Merc chairman
- Dubai ready with $4b OMX offer
- Africa sees investor confidence grow,  Investec builds pipeline of investments with private equity at the forefront
- GCC asset management industry to reach $200bln by 2012
- Japan`s hedge funds to register under new J-SOX law
- Activist News: ABN holders lose heart as shares briefly traded below the value of both offers, bids  start to look shaky
- News Briefs: LSE website crashed amid market turmoil, Mortgage REIT ETF down 40%, launched on market top, Citigroup lost more than $700m in credit business in recent weeks, Citco opens Pennsylvania office, Greenspan to advise Deutsche Bank, AIMA and CFA Institute to hold hedge fund replication seminar in Tokyo, SSgA to target Japan with ETFs
- ...And finally: Passengers flying out of Heathrow Airport suffer more stress than fighter pilots in action or police in riots
- Logon: http://www.opalesque.com/main.php?act=archive

 

_________________________________________________________________________

Misc. Items of Interest

 

U.S.: The Cycle of 'Dirty Bomb' Threats
http://www.stratfor.com/products/premium/read_article.php?id=293928

 

After Toy Recall, a Suicide
Chinese toy factory owner kills himself.
http://www.portfolio.com/news-markets/top-5/2007/08/13/After-Mattel-Toy-Recall-a-Suicide?TID=email/news/top5

 

Rising investment
Why is Indonesia is attracting investors?
Full article

 

Apple's fantastic new iMac
MACHINIST August 7, 2007
*************************
Steve Jobs has unveiled a snazzy
new all-in-one computer, plus a
redesigned suite of...
http://www.kurzweilai.net/email/newsRedirect.html?newsID=7111&m=29780

 

High-End N.Y. Real Estate Cools Along With Stocks
BY ELIOT BROWN - Special to the Sun
The Manhattan apartment market, long immune to national trends, could be cooled by the latest credit crunch and its effect on global markets, experts say. With hedge funds collapsing and a stock market increasingly prone to wild swings, Wall Street...

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

 

nebbish NEB-ish, noun:

A weak-willed, timid, or ineffectual person.

 

2004:  The Games of the XXVIII Olympiad opened in Athens, which had hosted the first modern Summer Games in 1896.

1995:  New York Yankees baseball player Mickey Mantle died in Dallas, Texas.

1919:  Famed racehorse Man o' War suffered the only defeat of his career.

1898:  The U.S. Army took control of the Philippine port of Manila during the Spanish-American War.

_________________________________________________________________________

Conference, Courses, Books, Papers

 

Great Research Sites:

 

Merrill Lynch research Link to full report including important disclosures see example

 

John Mauldin’s Weekly Analysis

 

James Altucher’s Website:

 

Other useful sites:

 

_________________________________________________________________________

Index Corner

 

The CSFB/Tremont Hedge Fund Index www.hedgeindex.com.

The Cogent Dynamic Averages http://www.cogenthedge.com/home/inv_strategy.asphttp://www.cogenthedge.com/home/inv_strategy.asp

The Dow Jones Indices: http://www.djhedgefundindexes.com/index.cfm?event=viewPremiumContent (free registration)

HFRX Indices https://www.hedgefundresearch.com/hfrx_reg/index.php?fuse=login&1170880431

_________________________________________________________________________

Regulatory Info

 

 

_________________________________________________________________________

Disclaimer

 

The information contained in this document does not constitute an offer or solicitation to sell any security or other type of vehicles to or by anyone in any jurisdictions, nor should it be regarded as a contractual document. Under no circumstances should the information provided on this document be considered as financial advice, or as a sufficient basis on which to make investment decisions. The information contained herein has been gathered by Investor DNA, LLC from sources deemed reliable as of the date of publication, but no warranty of accuracy or completeness is given. Investor DNA, LLC is not responsible for and provides no guarantee with respect to any of the information provided herein or through the use of any hypertext link. Past results are no indication of future performance. All information in this newsletter is for educational and informational purposes and does not constitute investment, legal, tax or accounting advice. All materials are the property of the respective publishers, as referenced by header and appropriate hypertext links.