How a hedge fund star lost it all
International Herald Tribune - France
By Christopher Rowland The Boston Globe BOSTON: When the Boston hedge fund millionaire Jeffrey Larson visited a classroom of economics students at his ...

Investors should look to funds of hedge funds, says S&P
Source: MoneyMarketing
Funds of hedge funds are a good proposition for investors looking for long-term investment returns without excessive risk, according to Standard & Poor's Fund Services. More... <http://www.hedgefund-index.com/newstoday.asp>

How to speak hedgie
Wed, 15 Aug 2007, 15:04
MSNBC/Newsweek
In these days of market volatility, hedge-fund managers and executives at all types of money management firms have been forced to explain why their funds are shutting down, losing money hand over fist, and freezing investors' funds. When they do so, however, they frequently lapse into a strange euphemistic dialect. And so we thought it would be helpful to provide a handy Hedgie-English glossary.

Fund bail-outs can be good business -- [at FT.com]
FT.com

 

U.S. Economic Forecast: Still Hazy And Crazy, But Not Lazy
The economy has cooled this summer as the weather has heated up. Problems in the credit markets are translating into fears for consumer spending as well as increased worries about housing. The 3% growth rate of the past four years has slowed to 1.9% over the past four quarters. Although we still expect the economy to avoid recession, the odds that the current slowdown will turn into a downturn are increasing. Housing remains the major weak spot in the U.S. economy, subtracting 0.9 percentage point from growth over the past four quarters.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWRBDQTVsLgHxhilpuHQJhuV2VT

 

Sal buys bigger stake in IKB -- [at FT.com]
By Ivar Simensen in Frankfurt FT.com
8/15/2007 4:50:25 PM

 

Deals: Weekly M & A Plunges Again
The biggest purchase was for $2.38 billion, and the 33 other deals fail to get the total quite to $6.5 billion. Little respite seen ahead in the suddenly anemic credit climate.

 

Poole says in interview only calamity would justify rate cut
By Steve Goldstein  MarketWatch
8/16/2007 06:43:00 AM

 

 

Market contagion "could hurt fixed income shift"
http://www.ipe.com/news/Market_contagion_could_hurt_fixed_income_shift__22997.php

 

Merkel's Cabinet Passes Transparency Rules For HFs & PE
International Herald Tribune - Thursday August 16, 08:44 BST

Investors Discuss How To Exit Hedge Funds
Wall Street Journal Interactive - Thursday August 16, 08:33 BST

 

Double Trouble For Fund That Starts With "High"
Dealbreaker.com - Thursday August 16, 10:26 BST

 

This Is (Potentially) Huge: Sentinel's Troubles Could Spread
Seeking Alpha - Thursday August 16, 08:03 BST

 

Derivative Fitch has introduced revised methodology for rating structured finance (SF) CDOs to reflect the increased risk associated with subprime residential mortgage-backed securities (RMBS) as portfolio collateral.

Full Story...

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Yield Curve Corner

 

The Afternoon Report
Wall Street Journal - USA
By MATT PHILLIPS New price data out today shouldn't set off any inflation alarms at the Fed, but Bernanke & Co. still face a tough call on interest rates as ...
See all stories on this topic

 

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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/TRCerin228_G12.jpg

 

Earthquake Kills at Least 115 in Peru
(By MONTE HAYES, AP)

 

Earthquake in Peru kills hundreds
August 16, 2007 06:00 AM ET
CANETE, Peru (Reuters) - A massive earthquake hit Peru on Wednesday
evening and officials said hundreds of people were killed in
the rubble of collapsed homes and a church as rescuers searched
for victims early on Thursday.
http://links.reuters.com/t/V0ERW/9YH8J/GX/VEFHK?a1=nl_usmorningdigest

 

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Iranian Situation

 

IRAN:  The proposed U.S. missile defense shield in Central Europe
represents a threat to "all Asia," Iranian President Mahmoud
Ahmadinejad said. Ahmadinejad was speaking at the Shanghai
Cooperation Organization (SCO) summit being held in the Kyrgyz
capital of Bishkek, where he said that all six SCO nations,
including China, are threatened.

 

Russia, China, Iran warn U.S. at summit
AP via Yahoo! News Thu, 16 Aug 2007 11:56 AM PDT
The leaders of Russia, China and Iran said Thursday that Central Asia should be left alone to manage its stability and security — an apparent warning to the United States to avoid interfering in the strategic, resource-rich region.

 

Top Iran cleric makes rare criticism of government
AFP via Yahoo! News Thu, 16 Aug 2007 5:04 AM PDT
Iran's judiciary chief has publicly criticised President Mahmoud Ahmadinejad for needlessly changing top officials, in a rare intervention in politics by one of Iran's most respected clerics.

 

U.S.: Upping the Ante with Iran
 http://www.stratfor.com/products/premium/read_article.php?id=294025

 

DEBKAfile’s sources report Moscow’s purported pressure on Iran is linked to Putin’s energy strategy

7 Aug.: Russia warned Iran fuel would be withheld from its nearly completed nuclear reactor at Bushehr unless Tehran comes clean on past atomic activities.

DEBKAfile’s military sources report that the Bushehr reactor is not linked to Iran’s nuclear weapons program and, in any case, the Russian manufacturers Novosibirsk Chemical Concentrates Plant tankers shipped the first consignment of nuclear fuel for activating Bushehr in early July.

 

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Opalesque’s Corner

 

Pension funds exploit the dislocation and stay faithful to hedge funds,  Massachussetts commission allows public pensions to put 10% in hedge funds
- Falling HFA share price to delay Lighthouse merger,  HFA says it benefited from exposure to U.S. subprime as it was net short, stock gains
- Basis seeks the advice of lawyers after banks pull credit, Insurers braced for subprime claims against directors
- CDOs face wave of downgrades, EU, US look at probing rating agencies over slow response to subprime mortgage crisis, It`s different this time: `Ratings agencies going to be sued`
- Sentinel invested in longer-term debt securities, Exchanges trying to get help for Sentinel: CFTC, Horizon Cash Management to investors parking cash: Look under the hood
- Goldman says Quant Funds need different strategies with more `unique factors`
- Subprime woes extend into commercial paper, Credit crunch hits Hollywood as Goldman and Deutsche quit $1bn MGM deal
- Opalesque Exclusive: More funds which are up MTD,  Volatility in global markets can harm  Indian market although sub-prime and credit derivatives exposure is minimal, First Quadrant CIO says catalyst allowed to anticipate coming problems, Brummer fund gains $850m on credit bet
- Opalesque Exclusive: Mulvaney fund suffers 16.89% loss in July, SocGen`s Lyxor says yesterday`s rumours of fund losses totally unfounded
- Carry traders dash for the exit, Brazil`s financial assets hit by global turmoil, Survey: Investors cut equities and boost cash,  see sell-off as buying opportunity and remained confident on economy, PSigma`s Mott buys `stunningly cheap` financials, Bedlam to sell financials on subprime concern
- M&A deal flow to slow, but consolidation will continue
- Dexion Trading instructs sub-manager to liquidate all investments and invest in global macro,  Dexion seeks GBP200m for Permal fund, Comment: Dexion fundraising a test for macro hedge funds
- KKR unit may lose $290m on mortgage bond sales, not to derail IPO, Canada`s Coventree hurt by U.S. Subprime,  Iceland`s Kaupthing buys sub-prime victim NIBC
- Goldman fund performance shows many trades struggling even before the markets got really rough, casting doubts on `multi-strat` approach
- Credit Suisse/Tremont Hedge Fund flat in July,  HFRI Fund Weighted Composite Index 0.45%,  7.95% YTD, FoF Composite Index 0.43%, 8.32% YTD, RBC Hedge 250 Index down -0.14%
- Opalesque Exclusive: How to get an A.I. education?
- Jabre to debut second fund, run by  another former GLG manager
- Lakewood Capital gets seed investment from Reservoir for maiden launch
- US union hits at private equity ´tax dodges´, Merkel to put clamps, transparency rules on private equity, hedge funds,  Australian hedge funds need more transparency - industry body
- SEC settles actions against 2 hedge fund advisers,  SEC, hedge fund Quattro settle on disclosure, pays $100k fine for failing to show holdings for 3 years, Two principals of defunct hedge fund firm Fountainhead sentenced to prison, Former ING hedge fund analyst, wife expected to plead guilty in insider case, Criminal charges near in major Wall Street stock-lending cases
- Eurex offers up to three million contracts free of trading and clearing fees in programm to help members expand regionally into specific high-growth markets
- ETF to deal in carbon emissions
- UK awaits retail access to funds of hedge funds, however managers show little interest
- Thames River profits surge 43%, TCI hedge fund hires chief compliance officer
- HMRC clarifies definition of Offshore Funds
- Third of UK pension funds do not hedge currency risk at all
- Opalesque Exclusive: Hedge funds drive Merrill Lynch Capital Markets` growth in Switzerland
- News Briefs: Ralph J. Acampora to retire, Pierre Mella-Barral appointed Professor of Finance at EDHEC Business School, Hong Kong Bourse`s profit more than doubles to record
- ...And finally: Chinese couple tried to name baby @
- Logon: http://www.opalesque.com/main.php?act=archive

 

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Misc. Items of Interest

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Funnies, Facts, Quotes, etc….

 

Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert
Bloomberg.com Thu, 16 Aug 2007 1:07 AM PDT
Aug. 16 (Bloomberg) -- Dear investor, we'd like to take this opportunity to update you on the recent performance of our hedge fund, Short-Term Capital Mismanagement LLP.

1960:  The island of Cyprus became an independent republic.

1948:  American baseball legend Babe Ruth died at age 53.

1913:  Menachem Begin—prime minister of Israel (1977–83) who was the corecipient, with Egyptian President Anwar el-Sadat, of the 1978 Nobel Prize for Peace—was born in Russia.

1819:  A meeting of radicals held on St. Peter's Fields in Manchester, England, was dispersed with violence, an event that became known as the Peterloo Massacre.

1780:  An American force was beaten by British troops under Lord Cornwallis in the Battle of Camden during the American Revolution.

963:  Nicephorus II Phocas was crowned emperor of the Byzantine Empire in Hagia Sophia by the patriarch Polyeuctus.

 

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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:

 

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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

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Regulatory Info

 

 

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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.