Main News

 

The Organization for Economic Cooperation and Development (OECD) has said that the “downside risks have become more ominous” for both Europe and the US alike.

Full Story...

 

A Wall Street Trader Learns Some Taxing Lessons: Michael Lewis
Source: Bloomberg
Given the huge costs of me being off the trading desk in these tumultuous times, I assumed the first article I wrote for Bloomberg might be my last.
But a lot of people seemed to really appreciate an actual Wall Street hedge-fund manager being honest about the big lesson of the subprime crisis: that it's a mistake to lend money to poor people. And so I've agreed to share some more lessons I've learned from hard experience -- in this case from my recent, highly frustrating, dealings with the U.S. Congress. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Big U.S. Homebuilders To Experience Protracted Downturn After Prolonged Prosperity
The housing correction has been swift and severe for the nation's largest homebuilders, and many CEOs have expressed pessimism for a 2008 recovery. We agree with that sentiment. Much of our concern stems from the fact that many big builders acquired quite a bit of land in the hottest bubble markets during the extraordinary housing boom. Now that the bubbles have popped, they are struggling to adjust. Additionally, today's more stringent mortgage credit standards will make it difficult for some willing buyers to finance home purchases, which will delay inventory absorption.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWWCWQTVsLgHxhilpuHQJhuV2VR

 

A Subprime Hangover: Credit And Liquidity Concerns Cloud The Broader U.S. Mortgage Market
The correction in the U.S. mortgage market and the accompanying adjustment of risk pricing has reverberated far and wide throughout the global capital markets. Examples abound: the leveraged loan market coming to an apparent standstill in August; widening spreads negatively affecting the pricing of credit card securitizations and senior debt issuances at U.S. commercial banks; leveraged hedge funds with large, concentrated holdings of subprime assets continuing to report heavy losses; and the equity and fixed-income markets' wild ride of volatility, which is showing few signs of subsiding.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWWCWQTVsLgHxhilpuHQJhuV2VS

 

Emerging markets are outperforming those in the U.S. and Europe. But not all are in good financial shape, and they could leave naive investors with losses.
http://online.wsj.com/article/0,,heard_on_the_street,00.html?mod=djemheard

 

Nymex crude-oil futures surged to a record intraday high of exactly $80 a barrel, though they didn't hold that level long and recently traded at about $79.75, still on pace for another record close. Crude settled at a record $78.23 on Tuesday.
For more information, see: http://online.wsj.com/page/commodities.html?mod=djemalert

 

VIX May Surge on Fed Meeting, Goldman Earnings, Merrill Says. By Jeff Kearns. More Photos/Details. Sept. 12 (Bloomberg) -- The biggest share-price swings in ...
www.bloomberg.com/apps/news?pid=20601087&sid=aTVojaaPb4AE&refer=home - 4 hours ago - Similar pages - Note this

 

Pirate Capital Bars Withdrawals From Two Activist Hedge Funds. By Katherine Burton. Sept. 11 (Bloomberg) -- Pirate Capital LLC, the hedge-fund manager run ...
www.bloomberg.com/apps/news?pid=20601087&sid=ajrF.G_ZcTDk&refer=home - 22 hours ago - Similar pages - Note this

 

 

by Paul Kedrosky

 

[PDF]

 

 

Long faces in Japan
Economic uncertainties at home
Full article

 

Maintaining momentum
Russia's rosy economy will see at least 7% growth this year
Full article

 

UK - Pensions commentator Con Keating has rubbished suggestions the UK Pension Protection Fund (PPF) should use risk hedging to ensure a stable PPF levy - claiming it would mean "massively higher premiums".

 

 

 

Old Lane Suffers A Drop; Another One Hit in August
Bloomberg - Wednesday September 12, 09:13 BST

 

Whistle Blowers Still Persona Non Grata
Financial Times - Wednesday September 12, 08:53 BST

 

Brian Hunter Keeps Busy
Wall Street Journal Interactive - Wednesday September 12, 09:43 BST

 

Berating agencies

Mark Pengelly investigates

Rising delinquencies in the US subprime mortgage sector have triggered a flood of downgrades by credit rating agencies.

 

Japanese Prime Minister Abe Will Resign
TOKYO -- Japanese Prime Minister Shinzo Abe announced Wednesday he will resign, ending a year-old government that has suffered a string of damaging scandals and a humiliating electoral defeat.
(By CHISAKI WATANABE, AP)

 

Tuesday , 11 Sep 2007
Listed uranium stocks remain mired in the red, with average losses of around 50%.

 

Citigroup's Old Lane hedge-fund unit declined 5.9% in August
Wed, 12 Sep 2007, 08:14
Bloomberg
Old Lane LP, the hedge-fund firm acquired this year by Citigroup Inc, fell 5.9 per cent in August, hurt by losses on debt and emerging-market securities. The drop left Old Lane, which oversees USD4.4 billion, with a 1.9 per cent gain for 2007, according to a September 7 report sent to clients. The return reflects performance across all of the New York-based firm's funds, according to the update from Jonathan Barton, managing director and a founding partner.

 

Activists on the prowl for ravaged assets -- [at FT.com]
By Phil Davis FT.com
9/11/2007 12:10:27 PM

Welcome all hedge fund dummies -- [at FT.com]
By Arne Alsin FT.com
9/11/2007 12:10:28 PM

 

Paulson apprehends sustained credit crunch
The crisis of confidence in credit markets is likely to last longer than previous financial shocks of the past two decades, Hank Paulson, US Treasury secretary, warned on Tuesday.  (Financial Times)
http://mail2.efnmail.co.uk/r/315021/MTk4MTI1OjE1MDU3/

 

A Secret Time Bomb Made of Gold
If the little-known gold carry trade unwinds, it can cause tsunami-like waves for global markets.
http://online.barrons.com/article/SB118954417476624138.html?mod=djemBF

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Yield Curve Corner

 

Blame Greenspan
Is the current turmoil on Wall Street largely a result of policy decisions Alan Greenspan made during his final years at the Fed? Portfolio Contributing Editor John Cassidy says that by keeping interest rates too low for too long, Greenspan encouraged a borrowing-fueled speculative binge, which has given way to the current credit squeeze. Read More

 

The following is a speech by Federal Reserve Chairman Ben Bernanke at the Bundesbank Lecture in Berlin.

Full Story...

 

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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/TRChumberto255_G12.jpg

 

Another Earthquake Strikes Indonesia
Meteorogical agencies say another powerful earthquake has struck Indonesia.
MORE DETAILS: <http://www.wnbc.com/tu/5rOlnbIdU.html>

 

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Iranian Situation

 

Iran warns nuclear cooperation at risk if sanctions
AFP via Yahoo! News Wed, 12 Sep 2007 11:43 AM PDT
Iran warned on Wednesday that its policy of increased cooperation with the UN atomic watchdog would be at risk if a third set of UN sanctions were imposed on the Islamic republic.

 

Petraeus says Iran involvement in attacks 'clear'
AFP via Yahoo! News Wed, 12 Sep 2007 11:18 AM PDT
The top US commander in Iraq said Wednesday there was hard evidence of Iranian involvement in attacks on US soldiers but demurred on whether US forces should respond with operations inside Iran.

 

IRAN:  The Petraeus report will not "save America from Iraq's
swamp," the Iranian Foreign Ministry said in a statement, the
official IRNA news agency reported. The statement said the Bush
administration transfers the blame for the continued violence in
Iraq onto others, referring to U.S. accusations that Iran is arming
and training militias.

 

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Opalesque’s Corner

 

- Wharton Y2K Finance fund suspends redemptions, Avendis collapses, Opalesque Exclusive: Investors have known about Avendis for a while,  Hank Paulson: No quick end to turmoil, Washington calls credit agencies for special meeting, SEC sets up four enforcement groups, one to focus on subprime
- El-Erian quits Harvard, returns to PIMCO, heir to Bill Gross?, El-Erian`s move caught Harvard off guard, search starts immediately, Erian likely to `vastly increase his salary`
- Hennessee Hedge Fund Index declines -0.72% in August, Dow Jones: Only merger arbitrage up, Nordic hedge funds join in August performance descent
- Commentary: Is it true that market neutral funds aren`t that `neutral` after all?  What August says about market neutral funds...not much, Yes, hedge funds also took a hit, but sector may be strengthened
- Top hedge fund assets near 1.5trillion, 246 funds now in $1bln club, Highbridge, Paulson double assets, new top ten list,  Murky hedge fund data:  Depending on which source you believe, investors hedge FoFs either kept the faith or ran screaming
- Pirate Capital bars withdrawals from two activist hedge funds
- Citigroup`s Old Lane hedge-fund unit declined 5.9% in August,  Renaissance funds weathered August storm -exec
- Leveraged loan market may finally be getting in gear as hedge funds transmit $1bln
- Bear Stearns appeals Cayman ruling on failed hedge funds
- Brian Hunter in deal to advise Boston investment firm
- UK`s Kingfisher dives into 130/30,  Fidelity UK survey says 2/3 or pensions intend to allocate to alternatives
- Hedge funds must monitor outsourcing providers, analysts say
- Compliance suffers from part-time CCOs, Hedge fund operational risk: How bad is the problem? Can we model operational risk?
- Is Jim Rogers Crazy? Or: Do speculators matter in commodities? Or are they irrelevant to a long-term investor?,  Butter, Milk And Gold: Global food shortage to hike inflation (UK shopping bill 30% until Christmas) and drive up gold prices
- Panel Intelligence hires former hedge fund manager David Kurzman to lead expansion into clean technology,  Sonnenschein Nath & Rosenthal LLP names Anthony L. Perricone chair of  Fund Services Group, Cobus Kruger joins Trialpha Investment Advisers as director of institutional business development
- Regionals and independents top sources of small cap research,  Goldman to cash in on demand for alternative investment research
- Ex-Sentinel client sues Bank of New York Mellon,  Aguirre not alone: Whistle-blowers remain in the line of fire as study finds only 3.6% of cases won by employees
- Fraga, Gavea adopt `defensive strategy` amid crisis,  Sub-prime fears push De Blonay to emerging markets
- Hedge fund could become LSE top shareholder
- Tapestry looks to raise GBP100m
- The surge in Islamic financial services
- Japan stocks drop after Prime Minister Abe resigns, hedge fund redemptions, real estate stocks `incredibly cheap`
- Activist News: Vinke:  HSBC should consider returning head office to HK and beef  up board with more heavyweight Asians, Steel Partners chief pays call on Sapporo Holdings
- News Briefs: Qatar to keep dollar peg for currency,  More taking CAIA exams as alternative investment industry grows, only 42 chartholders so far in Singapore, BoJ says US subprime problem unlikely to significantly affect Japanese financial system
- ...And finally: Something to teach your kids: Even Neanderthals were dental hygiene fans!

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Misc. Items of Interest

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Funnies, Facts, Quotes, etc….

 

impassible im-PASS-uh-buhl, adjective:

1. Incapable of suffering; not subject to harm or pain.
2. Unfeeling or not showing feeling.

1980:  The senior command of the Turkish army, led by General Kenan Evren, carried out a bloodless coup in their homeland.

1974:  Emperor Haile Selassie I of Ethiopia was deposed by the Derg, a committee of revolutionary soldiers.

1959:  The Soviet Union launched Luna 2, the first space probe to hit the Moon.

1943:  German commandos effected the escape of Benito Mussolini to Munich during World War II.

1934:  Estonia, Latvia, and Lithuania signed the Treaty of Understanding and Cooperation, providing for mutual defense mainly against Nazi Germany, which had replaced the Soviet Union as the most likely aggressor against the Baltic states.

1919:  Italian nationalist poet Gabriele D'Annunzio led an occupation of the Adriatic port city of Fiume (now Rijeka, Croatia), bringing to the forefront the Fiume question.

1814:  The Genevan republic was admitted to the ranks of the Swiss cantons.

1733:  Stanislaw I was elected king of Poland by the Sejm (Diet) of 12,000 delegates in Warsaw; the move led to the War of the Polish Succession.

1683:  The Siege of Vienna ended after a combined force led by John III Sobieski of Poland defeated the Turkish invaders.

 

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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.