Main News

 

A Wall Street Trader Draws Some Subprime Lessons: Michael Lewis. By Michael Lewis. Sept. 5 (Bloomberg) -- So right after the Bear Stearns funds blew up, ...
www.bloomberg.com/apps/news?pid=20601039&sid=a5lhZkEauCu8&refer=home - Similar pages - Note this

 

Global Equity Opportunities fund, into which the bank injected $2bn of its own money as part of a $3bn bail-out in the middle of last month, recovered strongly after the rescue

 

Greenspan sees turmoil similar to 1987: report
September 07, 2007 08:23 AM ET
NEW YORK (Reuters) - Former Federal Reserve Chairman Alan Greenspan
said the current market turmoil is "identical" in
many ways to that which occurred in 1987 and 1998, the Wall
Street Journal reported in its online edition on Friday.
http://links.reuters.com/r/MBZD1/OH05H/33HVJ/1021G/HPDXR/N9/t?a1=nl_usbusinessearly

 

KKR Ignores Its Bankers. KKR's bankers are pleading with the buyout firm to amend the terms of its most aggressively structured coming deals, ...
online.wsj.com/redirect/markets.html - Similar pages - Note this

 

Board Chairman Resigns After His Hedge Fund Loses $1.5 billion
The Mac Weekly - Friday September 07, 09:10 BST

 

What? Financial Engineering at KKR? Never
Wall Street Journal Interactive - Friday September 07, 08:38 BST

 

A Citigroup Investment Chief Is Shutting a Hedge Fund
New York Times Wed, 05 Sep 2007 8:41 PM PDT
Citigroup Alternative Investments is shutting down its Tribeca Capital Management hedge fund as its new leader, Vikram S. Pandit, puts his stamp on the long-overlooked division.

 

GAM, one of the largest fund of hedge funds managers, and rival Thames River Capital are primed to make substantial ...
eFinancial News Thu, 06 Sep 2007 5:00 AM PDT
GAM, one of the largest fund of hedge funds managers, and rival Thames River Capital are primed to make substantial investments in the stalled bank loan market, buying debt at a discount from lenders anxious to remove them from their balance sheets.

 

Hedge fund piranhas not welcome in pond: minister
The Japan Times Wed, 05 Sep 2007 4:48 PM PDT
Japan will not launch an offensive against hedge funds, although the country will strengthen their monitoring under a new law from the end of this month, newly appointed financial services minister... Read more ...

 

Wall Street stunned by negative jobs growth

Wall Street stocks were set for a sharply lower start on Friday, as the labour market contracted for the first time in four years, led by sharp declines in construction and manufacturing payrolls.

 

Basel 2 faces a baptism of fire
Market turmoil raises concerns about the Basel 2 banking accord ... more

 

LONDON (HedgeWorld.com) - A new report on how France can reach an accommodation with globalization and the international market economy, including hedge funds, is unlikely to be essential bedtime reading for continental hedge fund managers. ......

 

CHICAGO (HedgeWorld.com) - By now, hedge fund managers are well aware of the dangers of investing in financially troubled companies - with near-daily reminders in the headlines this summer, how could they not be? Yet in spite of the risk, they still find it difficult to pass up what could be a good deal, and it looks as though they're willing to try new approaches to reap returns in a changed credit environment. ......

 

Equity markets endured a volatile session as investors scoured US economic releases and central bank comments for clues about the global interest rate outlook

 

Five breaches at farm disease lab *
Investigations into the recent foot-and-mouth outbreak find five bio-security breaches at a government lab.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/uk/6982709.stm

Virus implicated in bee decline *
A virus has emerged as the unanticipated suspect in the mysterious decline of North American bees.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/6978848.stm

 

With a credit crisis as hefty as ours, many people feel the need to blame someone for the disaster and many are beginning to point their fingers at the credit rating agencies that they feel are largely responsible for the situation.

Full Story...

 

Seth Tobias, Hedge-Fund Boss and TV Commentator, Dies (Update3)
Bloomberg - USA
Tobias claimed that the Charlotte, North Carolina-based bank, which served as the hedge fund's prime broker, had ignored signs that a trader at Circle T had ...
See all stories on this topic

 

 

Double Dose of Good News
Labor market is more robust than expected, while productivity rises and labor costs moderate. Read More

 

 

 

Home Truths about the Housing Market
The sub-prime mortgage crisis and the credit crunch that has followed in its aftermath are taking their toll on the housing market. On August 28, the S&P Case-Shiller U.S. National Home Price Index showed that home prices fell 3.2% in the second quarter. According to the National Association of Realtors, the inventory of unsold homes is at a record high. As sales have fallen, many home builders have seen their stock prices drop by more than 60% during the past year. How serious is this situation? Is there light at the end of the tunnel? Joseph Gyourko, director of Wharton's Samuel Zell and Robert Lurie Real Estate Center, and Todd Sinai, a professor of real estate, spoke to Knowledge@Wharton about these questions and more.
http://knowledge.wharton.upenn.edu/article/1802.cfm

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Yield Curve Corner

 

A Bold Idea for Bernanke
BusinessWeek - USA
He's a respected economist and longtime friend and research partner of Fed Chairman Ben S. Bernanke. Mishkin raised the idea of preemptive rate cuts on Sept ...
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/TRCfitow249_GJ.jpg

 

NOAA Scientists Say Arctic Ice Is Melting Faster Than Expected
The Arctic ice cap is melting faster than scientists had expected and will shrink 40 percent by 2050 in most regions, with grim consequences for polar bears, walruses and other marine animals, according to government researchers.
(By Doug Struck, The Washington Post)

 

Hurricane Felix death toll rises *
The death toll from Hurricane Felix rises to 98 in Nicaragua and Honduras, as rescuers hunt for survivors and bodies.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/americas/6982722.stm

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Iranian Situation

 

Russia denies Iran deal on nuclear plant
Reuters via Yahoo! News Thu, 06 Sep 2007 7:50 AM PDT
Iran said on Thursday it had agreed a timetable with Russia for the start-up of the Islamic state's first nuclear power plant, but an official in Moscow said negotiations with Tehran were still under way.

 

Iran accuses US of supporting rebel groups
AFP via Yahoo! News Thu, 06 Sep 2007 5:31 AM PDT
Iran on Thursday accused the United States of supporting separatist rebel groups in its border regions to carry out acts of sabotage, including blowing up oil pipelines.

 

US more eager than Europe for military strikes on Iran: survey
AFP via Yahoo! News Thu, 06 Sep 2007 5:29 AM PDT
Far more Americans than Europeans believe that military force could prove necessary against Iran if diplomacy fails to halt the Islamic state's nuclear drive, a major opinion poll said Thursday.

 

Country Fast Facts: Iran
CBS News Thu, 06 Sep 2007 10:30 AM PDT
Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and the shah was forced into exile.

 

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Opalesque’s Corner

 

- Opalesque Exclusive: Bryan Garnier fund loses 9.58% in August as market downturns trigger stop-loss mechanisms, Opalesque Exclusive: Rocket scientist`s CTA bounces back with whopping 24.22% in August,  Opalesque Exclusive: Caliburn Capital Partners Wins Emerging Manager of the Year Award, fund up 17.2% through July, Opalesque Exclusive: Naissance funds post positive returns for August  (+3.5% to +5.25% est.), Amplitude`s high frequency trading capitalizes on volatile August with +4.13%, Schwager bucks the trend - Market Wizards Fund in managed account structure up 5.3% for first six months
- Opalesque Exclusive: CALPERS invests $75m each in global macro and multi-strategy fund
- SAC raises $1bln despite turmoil, `flight to quality`, SAC raised $1bln in August as fund declined 3% to 10% YTD
- Morgan Stanley`s quant division PDT loses $500m in two weeks,  Goldman makes $300m as fund rebounds after rescue, JP Morgan re-opens Highbridge  after assets fell GBP1bln in recent market volatility, J.W. Henry helped by volatility but losses persist
- FT comment: While the banking world has devoted commendable effort to worrying about hedge fund collapses, they have missed the new monster
- HK investment bank said to ready Forsyth Partners acquisition
- BlackRock President and co-founder leaves to start asset management firm focused on alternatives
- GAM lines up six hedge funds for substantial investments in stalled bank-loan market, as FoFs see `window of opportunity`,  Hedge funds expand in primary lending
- Background: War for talent at family offices: salaries rise, free use of `family jet`
- Parker FX Index down -0.58% in July, (YTD 2.22%), Top Performer: Overlay Asset Management High Frequency Program up 8.52%
- Citicorp  questions Cayman Islands as appropriate place for Basis liquidation, following Bear motion, Basis Cayman Islands liquidation recognised by UK court, Basis Capital fund wins temporary court protection
- Barclays says Solent commercial paper to be repaid
- Democrat Levin proposes reform allowing  tax-exempt organizations to invest onshore in hedge funds, Lawmakers consider drastical cap of hedge-fund managers` offshore tax deferrals, Hedge-fund billionaires eyed by Congress for more Medicare tax,  Democrats unveil plan for sweeping taxation reforms, Pension fund group drops opposition to PE tax change
- Refco Execs: Insurer won`t pay our legal fees!, Former Ohio Bureau CIO 21st person charged in Ohiogate
- Equity options dark pool set for US launch
- UN launches portal to boost carbon credit exchange
- Nova Scotia pension fund suffers setback as hedge funds struggle in August
- New European hedge fund hits $900 capacity two weeks before official launch
- Activist News: Breeden to join board of H&R Block, Activist investor Knight Vinke pushes HSBC to review strategy, Japan warns Steel Partners on further hostile bids after fund takes 18% position
- News Briefs:  ING Investment Management to open Dubai office, China `basically ready` to launch stock futures - securities regulator, NZ Savings & Loans closes retail notes offer based on Permal FoF
- ...And finally:  Thieves robbing sporting goods store in Uruguay spent half hour waiting on customers
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

 

Kids smarter than apes -- sometimes, anyway
September 06, 2007 06:21 PM ET
WASHINGTON (Reuters) - It's official: Your toddler is smarter
than a chimp, at least at some things.
http://links.reuters.com/r/GPOMR/L180B/N5YFA/774T4/NB97F/GX/t?a1=nl_usmorningdigest

 

Germany hunts 10 terror suspects *
Germany hunts some 10 people believed to have helped three men held over an alleged anti-US bomb plot.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/europe/6981141.stm

 

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Funnies, Facts, Quotes, etc….

 

salient SAY-lee-unt; SAYL-yunt, adjective:

1. Shooting out or up; projecting.
2. Forcing itself on the attention; prominent; conspicuous; noticeable.
3. Leaping; springing; jumping.
4. An outwardly projecting part of a fortification, trench system, or line of defense.
5. A projecting angle or part.

1885:  American poet and novelist Elinor Wylie was born in Somerville, New Jersey.

1876:  The Younger Brothers, a group of American outlaws, were captured following an unsuccessful bank robbery.

1860:  Giuseppe Garibaldi entered Naples, Italy, and proclaimed himself “Dictator of the Two Sicilies.”

1822:  Dom Pedro I declared the independence of Brazil.

1812:  Napoleon's French forces narrowly defeated the Russians under Mikhail Illarionovich Kutuzov at the Battle of Borodino.

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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.