Archive: 08/24/2007
Main News
The ever-changing forefront of risk management is constantly changing and Harvard Business School says that the two primary challenges regulatory authorities are now facing need to be dealt with “forcefully” in order for international finance to forge ahead.
What's Ahead for the Stock Market -- and Quant Funds
After weeks of skittishness and fear, investors showed signs on Tuesday of settling down. "Yesterday was one of the dullest days in the market that we've had in a while, and that's good in many ways," says Wharton finance professor Jeremy Siegel. Investors have been reeling from widespread problems in the subprime sector, stocks have fallen, yields on Treasury securities have dropped and some companies are finding it hard to borrow money -- all of which spurred the Federal Reserve last week to announce a cut in interest rates. Meanwhile, the upheaval has shown that quant funds, despite their computer power, aren't immune to mistakes and market downturns. So what can we expect in the weeks ahead?
http://knowledge.wharton.upenn.edu/article/1797.cfm
After weeks of skittishness and fear, investors showed signs on Tuesday of settling down. "Yesterday was one of the dullest days in the market that we've had in a while, and that's good in many ways," says Wharton finance professor Jeremy Siegel. Investors have been reeling from widespread problems in the subprime sector, stocks have fallen, yields on Treasury securities have dropped and some companies are finding it hard to borrow money -- all of which spurred the Federal Reserve last week to announce a cut in interest rates. Meanwhile, the upheaval has shown that quant funds, despite their computer power, aren't immune to mistakes and market downturns. So what can we expect in the weeks ahead?
http://knowledge.wharton.upenn.edu/article/1797.cfm
A Fish Tale on a Macro Scale: How Sushi Has Changed Globalization (and the World)
Over the past two decades, sushi -- a familiar, accessible and immensely desirable food that can be found in supermarket aisles and fast food outlets as well as high-end restaurants -- has become a staple of cultures around the globe. Indeed, far from signaling the snobbery of those who eat it, sushi today belongs to the masses. Yet sushi also says something important about how wealth, taste and markets interact, according to Sasha Issenberg. In his new book, The Sushi Economy: Globalization and the Making of a Modern Delicacy, Issenberg argues that sushi reveals the "complex dynamics of globalization" and shows, against all odds, that "a virtuous global commerce and food culture can exist."
http://knowledge.wharton.upenn.edu/article/1791.cfm
Over the past two decades, sushi -- a familiar, accessible and immensely desirable food that can be found in supermarket aisles and fast food outlets as well as high-end restaurants -- has become a staple of cultures around the globe. Indeed, far from signaling the snobbery of those who eat it, sushi today belongs to the masses. Yet sushi also says something important about how wealth, taste and markets interact, according to Sasha Issenberg. In his new book, The Sushi Economy: Globalization and the Making of a Modern Delicacy, Issenberg argues that sushi reveals the "complex dynamics of globalization" and shows, against all odds, that "a virtuous global commerce and food culture can exist."
http://knowledge.wharton.upenn.edu/article/1791.cfm
NEW YORK (HedgeWorld.com)—For currency traders there is a silver lining to the market cloud: the creation of new arbitrage opportunities, which are often picked up by computer models. ......
Sentinel Contagion Contained to Europe
Source: Yahoo! Finance
The fallout from last week's collapse of Sentinel Management Group Inc. has reached across the Atlantic to infect at least two well-known hedge fund managers: Capital Fund Management, of Paris, France, and Helsinki, Finland-based ER Capital Management. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: Yahoo! Finance
The fallout from last week's collapse of Sentinel Management Group Inc. has reached across the Atlantic to infect at least two well-known hedge fund managers: Capital Fund Management, of Paris, France, and Helsinki, Finland-based ER Capital Management. More... <http://www.hedgefund-index.com/newstoday.asp>
Goldman Global Equity Hedge Fund Rises 12% After Cash Infusion
Bloomberg.com Thu, 23 Aug 2007 12:07 PM PDT
Aug. 23 (Bloomberg) -- Goldman Sachs Group Inc.'s Global Equity Opportunities hedge fund rose 12 percent last week after the securities firm shored up the money-losing pool with $3 billion of cash, investors said.
Bloomberg.com Thu, 23 Aug 2007 12:07 PM PDT
Aug. 23 (Bloomberg) -- Goldman Sachs Group Inc.'s Global Equity Opportunities hedge fund rose 12 percent last week after the securities firm shored up the money-losing pool with $3 billion of cash, investors said.
Turmoil throws hedge fund strategies awry
Financial Times Thu, 23 Aug 2007 12:56 PM PDT
Turmoil in financial markets has inflicted significant damage on the investment performance of some of the biggest names in the hedge fund sector, with data showing DE Shaw and Goldman Sachs continuing to suffer losses.
Financial Times Thu, 23 Aug 2007 12:56 PM PDT
Turmoil in financial markets has inflicted significant damage on the investment performance of some of the biggest names in the hedge fund sector, with data showing DE Shaw and Goldman Sachs continuing to suffer losses.
Hedge-fund redemption shock
CNN Money Thu, 23 Aug 2007 9:30 AM PDT
Investors are expected to hit hedge funds with a flood of redemption requests this fall, but those who try to withdraw their money may be in for an unpleasant surprise.
CNN Money Thu, 23 Aug 2007 9:30 AM PDT
Investors are expected to hit hedge funds with a flood of redemption requests this fall, but those who try to withdraw their money may be in for an unpleasant surprise.
Four Biggest Banks Tap Fed's Cash
The U.S. banks borrow $2 billion at the Fed's discount rate. Read More
The U.S. banks borrow $2 billion at the Fed's discount rate. Read More
Structured Finance
The Fundamentals Of Structured Finance Ratings
Structured finance has become an increasingly important tool in today's financial markets, with issuance levels growing at an extraordinary rate in the past few years both in the U.S. and Europe, as well as in most markets in Asia-Pacific. Its development has been accompanied by vocal debate from market participants and commentators alike on the manner in which credit rating agencies, including Standard & Poor's, evaluate the creditworthiness of such securities.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWSADQTVsLgHxhilpuHQJhuV2VR
The Fundamentals Of Structured Finance Ratings
Structured finance has become an increasingly important tool in today's financial markets, with issuance levels growing at an extraordinary rate in the past few years both in the U.S. and Europe, as well as in most markets in Asia-Pacific. Its development has been accompanied by vocal debate from market participants and commentators alike on the manner in which credit rating agencies, including Standard & Poor's, evaluate the creditworthiness of such securities.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWSADQTVsLgHxhilpuHQJhuV2VR
'Perceived risk' makes EMEA interesting - Fidelity
http://www.ipe.com/news/_Perceived_risk_makes_EMEA_interesting_Fidelity_25082.php
http://www.ipe.com/news/_Perceived_risk_makes_EMEA_interesting_Fidelity_25082.php
The fixed income markets were roiled by a surge in volatility, a better than three percent price decline in the S&P 500 and the apparent reluctance combined with higher financing rates for the pipeline of LBO’s to get funded in the term market. Yields declined by 22-38 bps for the coupon sector of the Treasury curve with the short to intermediate sector outperforming the wings.
UK - An investment shake up by the Welsh Rhondda Cynon Taf local government pension scheme has reduced mandates controlled by F&C Management and Baillie Gifford Asset Management, as part of an overall diversification of the scheme's portfolio.
What happened At GLG?
MSNBC.com - Thursday August 23, 07:48 BST
MSNBC.com - Thursday August 23, 07:48 BST
University Endowments Start To Tally Up Losses
Connecticut Business News Journal - Thursday August 23, 07:45 BST
Connecticut Business News Journal - Thursday August 23, 07:45 BST
YOU WILL BE AFFECTED BY THE MORTGAGE MESS: http://www.nypost.com/seven/08232007/business/you_will_be_affected_by_the_mo.htm
By JOHN CRUDELE
SO, you think this whole mortgage mess doesn't affect the average, solvent American household? About a week ago, Capital One started instituting massive increases in the rates it charges its credit-card customers. I first found out about this because a reader sent me an...
By JOHN CRUDELE
SO, you think this whole mortgage mess doesn't affect the average, solvent American household? About a week ago, Capital One started instituting massive increases in the rates it charges its credit-card customers. I first found out about this because a reader sent me an...
Hedge funds part of NY retirement portfolio
Business First of Buffalo Wed, 22 Aug 2007 4:20 AM PDT
New York state's comptroller isn't concerned about hedge funds. The state Common Retirement Fund that Thomas DiNapoli oversees has invested $4.6 billion in hedge funds.
Business First of Buffalo Wed, 22 Aug 2007 4:20 AM PDT
New York state's comptroller isn't concerned about hedge funds. The state Common Retirement Fund that Thomas DiNapoli oversees has invested $4.6 billion in hedge funds.
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Yield Curve Corner
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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:
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Iranian Situation
"I wept because I had no shoes, until I saw a man who had no feet." - Ancient Persian saying
Draft report logs bleak outlook for Iran
AP via Yahoo! News Thu, 23 Aug 2007 12:02 PM PDT
A draft intelligence report portrays a bleak political situation in Iran, anticipating little progress in getting Tehran to halt its nuclear program or stop supporting militant groups in the region, U.S. officials said Thursday.
AP via Yahoo! News Thu, 23 Aug 2007 12:02 PM PDT
A draft intelligence report portrays a bleak political situation in Iran, anticipating little progress in getting Tehran to halt its nuclear program or stop supporting militant groups in the region, U.S. officials said Thursday.
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Opalesque’s Corner
- Goldman Global Equity hedge fund rises 12% after cash infusion, assets doubled, Renaissance almost makes up entire August losses
- French hedge fund faces Sentinel losses, Discus may lose $407m on Sentinel collapse, Sentinel contagion: Finland`s ER and Capital Futures exposed, Sentinel Seg 3 clients to see 50 cents...maybe, Sentinel`s mysterious links to Lake Shore
- U.S. money funds seen safe from subprime problems
- Carlyle makes $100m loan to troubled fund
- BofA to invest $2bn in mortgage giant, Lehman Brothers shuts down subprime unit, fires 1,200, HSBC will cut 600 U.S. jobs, close mortgage office
- Other Voices: Financial engineering causing widespread collateral damage, FT comment: Financial innovation itself is the problem, and how to deal with it, Fiscal, not monetary policies: Pimco`s Gross urges White House, not Fed to bail out homeowners, Gross sees time near for bargain-hunting in credit
- Marshall Wace spends $11m to buy back Amsterdam listed fund, MW Tops down 4.93% since May
- Case study finds hedge fund survival depends on deep pockets, cooperation, openness
- Hedge FoFs see opportunities in distressed debt, FRM fund seeks opportunities in credit crunch
- Cat Bond and insurer-inspired issues weather credit storm
- New Mexico ramps up hedge, PE portfolios, NJ Governor Corzine adds hedge fund, Wall Street experts to State Investment Council
- New Harvard paper `Hedge Fund Investor Activism and Takeovers` says takeovers are the name of the game
- Hedge funds chase capital for LBO bets
- Opalesque Exclusive: Africa veteran, CIO reveals how to tackle `the last big investment frontier`
- Torrey Associates ponders opening research office abroad, Interkraft Capital to hire three traders for electricity fund
- Canadian hedge funds positive in July: 1.82%, 8.49% YTD, Nordic Hedge Fund Index (NHX) down -0.33% in July
- MSIM warns over `tick-box` approach to alternatives diversification
- Study: Taxing carried interest won`t be cash cow
- NY hedge fund community invites for Cocktails & Dance to benefit Children`s Storefront (Oct. 11th)
- S & P to make its credit ratings data available to hedge funds through Sky Road
- Hedge fund fraudster Molitor dies in motorcycle accident, SEC fines SF hedge fund founder Hoffman $100K for mutual fund late trading, SEC enters final judgment against John Fife and Clarion Management
- Swiss Re and Ascendant in first cleared Cat Derivatives Trade
- Nymex says it has held merger talks, How aquiring OMX could open door into London for Nasdaq
- Assets up 1500%: Toscafund founder sets up another winning hedge fund business
- DFSA orders Forsyth Partners Global Distributors to cease carrying on of any financial service, may withdraw license
- Opalesque Exclusive: GCA Greater China Fund returns +8.22% for July, 25.44% YTD
- Activist News: CalPERS backs Breeden`s bid for board seats at H&R Block, Bank of America gets antitrust OK to buy LaSalle, Barclays president says still wants ABN AMRO
- News Briefs: Endowments beat other funds in quarter, South Korea tax officials raid Lone Star offices
- ...And finally: `Monster Duathlon` buys GBP1m insurance against Loch Ness monster attack
- Logon: http://www.opalesque.com/main.php?act=archive
- French hedge fund faces Sentinel losses, Discus may lose $407m on Sentinel collapse, Sentinel contagion: Finland`s ER and Capital Futures exposed, Sentinel Seg 3 clients to see 50 cents...maybe, Sentinel`s mysterious links to Lake Shore
- U.S. money funds seen safe from subprime problems
- Carlyle makes $100m loan to troubled fund
- BofA to invest $2bn in mortgage giant, Lehman Brothers shuts down subprime unit, fires 1,200, HSBC will cut 600 U.S. jobs, close mortgage office
- Other Voices: Financial engineering causing widespread collateral damage, FT comment: Financial innovation itself is the problem, and how to deal with it, Fiscal, not monetary policies: Pimco`s Gross urges White House, not Fed to bail out homeowners, Gross sees time near for bargain-hunting in credit
- Marshall Wace spends $11m to buy back Amsterdam listed fund, MW Tops down 4.93% since May
- Case study finds hedge fund survival depends on deep pockets, cooperation, openness
- Hedge FoFs see opportunities in distressed debt, FRM fund seeks opportunities in credit crunch
- Cat Bond and insurer-inspired issues weather credit storm
- New Mexico ramps up hedge, PE portfolios, NJ Governor Corzine adds hedge fund, Wall Street experts to State Investment Council
- New Harvard paper `Hedge Fund Investor Activism and Takeovers` says takeovers are the name of the game
- Hedge funds chase capital for LBO bets
- Opalesque Exclusive: Africa veteran, CIO reveals how to tackle `the last big investment frontier`
- Torrey Associates ponders opening research office abroad, Interkraft Capital to hire three traders for electricity fund
- Canadian hedge funds positive in July: 1.82%, 8.49% YTD, Nordic Hedge Fund Index (NHX) down -0.33% in July
- MSIM warns over `tick-box` approach to alternatives diversification
- Study: Taxing carried interest won`t be cash cow
- NY hedge fund community invites for Cocktails & Dance to benefit Children`s Storefront (Oct. 11th)
- S & P to make its credit ratings data available to hedge funds through Sky Road
- Hedge fund fraudster Molitor dies in motorcycle accident, SEC fines SF hedge fund founder Hoffman $100K for mutual fund late trading, SEC enters final judgment against John Fife and Clarion Management
- Swiss Re and Ascendant in first cleared Cat Derivatives Trade
- Nymex says it has held merger talks, How aquiring OMX could open door into London for Nasdaq
- Assets up 1500%: Toscafund founder sets up another winning hedge fund business
- DFSA orders Forsyth Partners Global Distributors to cease carrying on of any financial service, may withdraw license
- Opalesque Exclusive: GCA Greater China Fund returns +8.22% for July, 25.44% YTD
- Activist News: CalPERS backs Breeden`s bid for board seats at H&R Block, Bank of America gets antitrust OK to buy LaSalle, Barclays president says still wants ABN AMRO
- News Briefs: Endowments beat other funds in quarter, South Korea tax officials raid Lone Star offices
- ...And finally: `Monster Duathlon` buys GBP1m insurance against Loch Ness monster attack
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
America's Hackable Backbone
Andy Greenberg
Post Sept. 11 cyberterrorism predictions haven't materialized. But U.S. power plants, trains and oil pipelines are nonetheless more vulnerable than ever before.
Andy Greenberg
Post Sept. 11 cyberterrorism predictions haven't materialized. But U.S. power plants, trains and oil pipelines are nonetheless more vulnerable than ever before.
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Funnies, Facts, Quotes, etc….
amicable AM-ih-kuh-buhl, adjective:
Characterized by friendliness and good will; friendly; peaceable.
1939: Germany and the Soviet Union signed a nonaggression pact dividing eastern Europe into German and Soviet spheres of influence.
1927: Italian immigrants Nicola Sacco and Bartolomeo Vanzetti were executed for murder in Massachusetts, despite a mishandled trial and the widespread belief that they were innocent.
1926: “The Great Lover,” motion-picture actor Rudolph Valentino, died suddenly at age 31, prompting widespread public grief from his fans.
1849: English poet, critic, and editor William Ernest Henley, who introduced the early work of many of the great English writers of the 1890s in his journals, was born in Gloucester.
1514: The Ottomans won a decisive victory over the Safavids of Iran at the Battle of Chaldiran.
1305: Scottish national hero and resistance leader Sir William Wallace was executed in London.
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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)
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Regulatory Info
investor.info@sfc.hkhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
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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
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