Main News

 

 

Why Sentinel Collapsed. 
The collapse of cash-management firm Sentinel boils down to mismanagement and greed.  But with more than $700 million of customer money still missing, the rest of the story has yet to be told, Barron's says.
http://online.barrons.com/article/SB118860706640815325.html

 

Partners Group posts 27% rise in AuM
http://www.ipe.com/news/Partners_Group_posts_27_rise_in_AuM_25146.php

 

WSJ.com - Deutsche Bank Sees Some Impact From Credit-Market Problems*

 

Risk Systems May Increase Risk

By Andrew Hurst, European Banking Correspondent - Analysis ZURICH (Reuters) - Sophisticated systems used by banks to help weigh risks in trading asset-backed securities may have helped fuel a liquidity crisis as investors rushed for the exit at the first sign of trouble, say analysts and consultant. An implosion in the U.S. subprime mortgage market set off a prairie fire, sweeping across asset classes and sparking a liquidity crunch as banks stopped lending to each other in a scenario that no risk management model saw coming. "These risk management systems create risk," Avinash Persaud, Chairman of Intelligence Capital Ltd, a risk consultancy, who says most financial institutions use much the same programs which lead to similar investment decisions. read entire story on source's website

 

 

 

 

 

Bear, Lehman hardest hit by credit crunch

Investment banks are expected to report sharp drops in quarterly profit when they report results in the week starting September 17

 

Forsyth Fund Fumbles, Seeks Emergency $$$
Financial Times - Tuesday September 04, 09:19 BST

 

Impact of US subprime mortgage exposure on European insurers ...
Forbes - NY,USA
MUMBAI (Thomson Financial) - Fitch Ratings said the European insurance industry's risk from various US subprime mortgage exposures is minimal and the ...
See all stories on this topic

 

Investors have placed almost $400m (€290m) in a climate change-related hedge fund backed by Man Group, the world’s ...
eFinancial News Sun, 02 Sep 2007 9:20 PM PDT
Investors have placed almost $400m (€290m) in a climate change-related hedge fund backed by Man Group, the world’s largest hedge fund management firm.

 

A brief history of financial crises
As the Great Credit Crisis of summer 2007 threatens to turn into an autumn one as well, the securities world is having to decide which of the following two scenarios is true.
http://mail2.efnmail.co.uk/r/313761/MTk4MTI1OjE0OTcx/

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Yield Curve Corner

 

Bernanke: Help, Yes; Bailout, No
Fed chief stresses central bank's eagerness to keep markets liquid, but not to rescue homeowners. Read More

 

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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/TRCfelix247_G12.jpg

 

Central America braces for Felix
September 04, 2007 05:22 AM ET
TEGUCIGALPA (Reuters) - Tens of thousands of people hunkered
in storm shelters on Tuesday as Hurricane Felix roared toward
Central America, but transport shortages left many facing the
storm's whipping winds and rain in their homes.
http://links.reuters.com/r/EN8ZS/C9NRF/9H05U/P3UWB/SOWWX/GX/t?a1=nl_usmorningdigest

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Iranian Situation

 

Iran Replaces Revolutionary Guards' Head
Forbes.com Staff
Surprise move comes amid growing tension with Washington.

 

Freed Scholar Leaves Iran; Another Still Held
New York Times Mon, 03 Sep 2007 12:23 PM PDT
Haleh Esfandiari left Iran yesterday, but a scholar who was arrested along with her is still being held despite promises of his release made to his family.

 

 

 

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Opalesque’s Corner

 

- Hedge funds suffer largest drop in investments since 2000 in July ($32bln outflows), FoFs withs $55bln redemptions, nearly 5% of their assets,  Funds of hedge funds selling adds to volatility, but worst should be over,  Gartmore raises extra $200m for fund, Manager: outflows only from beaten funds
- U.K.`s Synapse hedge fund closes, weighed down by mortgages,  Synapse fund shuttered despite having no exposure to subprime
- Forsyth fund seeks emergency cash as Dubai unit is shut, in discussions `with a number of strategic partners`, Commentator: Forsyth failure `puzzling` in light of liquidity flood in the region
- Mortgage crisis spreads to muni bond funds, erasing YTD profits, the end of another hedge fund strategy?
- BIS, S&P disagree over severity of credit market rout, BIS: not as severe as 1998,  Top banker sees end to irrationality, markets `to function again` in next few months, Shake-out exposes need to become more sophisticated, Bear, Lehman hardest hit by credit crunch, IKB says FY loss to EUR700m on subprime cleanup,  Latvia and Iceland predicted to feel cold most in credit crunch
- Update: Researcher of `hedge fund contagion` paper says conclusions need to be modified if data includes August events
- New Orleans jumps into hedge funds, allocates to five firms
- Opalesque Exclusive: Update: Singapore quant fund rakes in 60% YTD, A list of likely winners and losers in emerging hedge fund shakeout
- NFA COO says approved  Sentinel`s payments to Alaron and three other brokers before it discovered $505m was missing,  SEC caught in re-filing Sentinel records edited `with black marker`, however blog offers `before-and-after` view
- Opalesque Exclusive: Brazil`s Mauà still betting on the market
- Hedge funds help PensionDanmark to positive returns despite wipe out, Austrian pension fund in successful hedge
- Pooled fund of hedge funds post third consecutive quarter of growth
- Background: Global market develops for verified emission reductions outside of Kyoto mechanisms
- Deloitte UK`s hedge fund practice revenues double
- Angst and denial: Spain can`t believe its nine year record property boom ends
- German government not seeking stake limit for hedge funds
- Dubai holding eyes $25bln asset portfolio
- Henderson says Asian stock downturn likely
- Investment opportunity: Capital needed for start-up Chinese discount airline
- Yen falls as BOJ seen keeping rates steady, carry trades resume
- News Briefs: Massachusetts town pension fund goes to state, London`s second-biggest house (right behind Buckingham Palace) doubles price tag to $151m in just 6 weeks, Commerzbank gets nod to open branch in Dubai, China`s investor protection fund receives first payment
- ...And finally: NY woman invents little coffins for wedding rings after divorce. Former husband has no comment
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

 

Bin Laden Family Business Denies Liability for 9/11
(By Larry Neumeister, The Washington Post)

 

Korea Confronts Spate of Phony Résumés
SEOUL -- An epidemic of phony academic credentials has broken out in South Korea, a nation where calibrations of human worth are obsessively tied to college achievement.
(By Blaine Harden, The Washington Post)

 

 * Scientists discover height gene *
An international team of scientists have discovered the first gene that influences a person's height.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/health/6975865.stm

 

'Flying saucer' nears US take-off
BBC News August 30, 2007
*************************
The M 200G, otherwise known as a
"flying saucer," will go on sale in
a few months for around $90,000.
It's the brainchild of Dr Paul
Moller, an aeronautics engineer who
envisions a "highway in the sky"
that he believes could cut
conventional commuter traffic in...
http://www.kurzweilai.net/email/newsRedirect.html?newsID=7210&m=29780

 

Market Beater. 

Introducing the Barron's 400, a new stock-market index that collects the most fundamentally sound and attractively priced stocks from all corners of the market?regardless of size or industry group.  This formula should help the "B400" continue its impressive track record?and makes it a good short-cut for investors looking for promising stocks. 
http://online.barrons.com/article/SB118860238120515168.html

 

The Latest Mohammed Cartoons and the Potential for Violence
http://www.stratfor.com/products/premium/read_article.php?id=294758

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Funnies, Facts, Quotes, etc….

 

commination kom-uh-NAY-shuhn, noun:

1. A denunciation.
2. A threat of punishment.

1989:  The National Aeronautics and Space Administration (NASA) and the U.S. Air Force launched the last Titan III rocket.

1972:  American swimmer Mark Spitz won his seventh gold medal during the Munich Olympic Games, the first person ever to do so in a single Olympics.

1957:  The Ford Motor Company introduced the Edsel automobile.

1908:  Novelist and short-story writer Richard Wright, among the first African American writers to protest white treatment of blacks, was born.

1870:  Napoleon III, who ruled France first as president (1850–52) and then as emperor (1852–70), was deposed and the Third Republic proclaimed.

1864:  John Hunt Morgan, the Confederate guerrilla leader of “Morgan's Raiders,” was killed by Federal troops.

925:  King Athelstan of West Saxony became the first king to rule all of England.

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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:

Optimality of the RiskMetrics VaR Model

Using different loss functions in estimation and forecast evaluation of econometric models can cause suboptimal parameter estimates and inaccurate assessment of predictive ability. Though there are not general guidelines on how to choose the loss function, the modeling of Value-at-Risk is a rare instance is which the loss function for forecasting evaluation is well defined. Within the context of the RiskMetricsT methodology, which is the most popular to calculate Value-at-Risk, we investigate the implications of considering different loss functions in estimation and forecasting evaluation. Based on U.S. equity, exchange rates, and bond market data we find that there can be substantial differences on the estimates under alternative loss functions. On calculating the 99% VaR for a 10-day horizon, the RiskMetricsT model for equity markets overestimates substantially the decay factor. However, the out-of-sample performance is not systematically superior by using the estimates under the correct loss function.

view complete description on GloriaMundi

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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.