Main News

 

Report of hedge fund outflows was wrong, firms say
MarketWatch - USA
Hedge fund performance wilted toward the end of July and deteriorated further in August amid credit market turmoil. That sparked fears of big redemptions by ...
See all stories on this topic

 

BlackRock Pounces On Quellos Fund of Funds
HedgeCo.Net - Wednesday October 03, 09:48 BST

 

NYC's Ready For Economic Downturn. Are You?
Crain's New York Business - Wednesday October 03, 08:54 BST

 

Credit Crunch Finally Socks Greenwich
Reuters - Wednesday October 03, 08:50 BST

 

CRISIS FOR NEW CLASS OF FUNDS
New York Post Wed, 03 Oct 2007 2:46 AM PDT
Hedge-fund executives say the next blow to hammer their industry will likely come from a wave of hedge-fund redemptions driven by highly-levered funds that invest in other hedge funds. One bellwether of how this may play out in coming months can...

 

Democrats Assail Bush on Mortgage Crisis
The Associated Press -
WASHINGTON (AP) — Congress' top Democrats demanded quick action on the subprime mortgage crisis, saying President Bush has been slow to address a situation ...
See all stories on this topic

 

 <http://www.hedgefund-index.com/newsemerging.asp> Emerging market boom replaces bursting U.S. bubbles
Source: Reuters UK
The bursting of U.S. housing and mortgage market bubbles has suddenly been replaced by emerging markets inflating, and world equities have got pumped up into the bargain.

 

Top Ten: The 10 top news stories and analysis for September
By MarketWatch 
10/2/2007 5:07:00 PM

 

The outlook for mortgages -- [at FT.com]
FT.com
10/3/2007 9:35:21 AM

 

Three lessons from the credit squeeze -- [at FT.com]
By John Gapper FT.com
10/3/2007 1:45:12 PM

 

The World Of $80 Oil: How The Economy And Industries Cope
The one certainty, it seems, is continuing uncertainty. Oil prices will probably remain volatile, creating problems not only for the global economy, but also for the industrial sectors that are heavy users of crude and refined products, especially airlines, chemicals, electrical utilities, and freight transportation. We expect worldwide demand for oil to increase rapidly over the long term because of the strength of the Asian economies. Even with a weaker U.S. economy and sluggish growth in Japan and Europe, energy demand should eventually rise.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWCUDQTVsLgHxhilpuHQJhuV2VSS

 

Republic Of Kazakhstan And Govt Subs On Watch Neg Pending External Financing Risk Assessment
The CreditWatch placement on the Republic of Kazakhstan (foreign currency BBB/Watch Neg/A-3; local currency BBB+/Watch Neg/A-2) follows growing concern about the more adverse international financial environment which affects Kazakhstan through the very substantial external financing needs of the domestic banking system. The country's tighter liquidity conditions also contribute to an expected significant slowdown of credit growth, reducing the speed at which its economy expands and potentially compromising asset quality in the future.
To learn more, click or copy and paste the URL below:

http://standardandpoors.rsys1.net/servlet/cc5?kHiQWCUDQTVsLgHxhilpuHQJhuV2VSY

 

Credit FAQ: Accounting Ramifications Of The Recent Mortgage-Lending Disruption For Financial Institutions
In addition to the usual complexity surrounding accounting and disclosures under normal market conditions, today's challenging environment magnifies the accounting effects and generates greater financial reporting risks globally for many issuers. Beyond the much-discussed effects of deteriorating securities valuations and increases in loan loss reserves, we expect reported financial results to reflect greater volatility from the increased use of derivatives of the recent past, many of which may experience greater volatility than projected.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWCUDQTVsLgHxhilpuHQJhuV2VSC

 

Holland Capital Management closes hedge fund
Tue, 02 Oct 2007, 12:15
Institutional Investor/Hedge Fund Daily

Dutch hedge fund Holland Capital Management is the latest casualty of the credit squeeze, agreeing to close one of its two funds after losses in August, according to Financial News. The fund came under pressure when Barclays Capital, which had sold investors in the funds a capital protection note underwriting EUR38 million (USD53.7 million) of their money, triggered a redemption request. Holland Capital, which specializes in credit, will unwind the fund over the next four months.

by Michael Shedlock

 

by Christopher Holt

 

_________________________________________________________________________

Yield Curve Corner

 

Bernanke Spoke With Rubin as Credit Crisis Worsened (Correct)
Bloomberg - USA
Starting with a phone call from former Treasury Secretary Robert Rubin the day after the August rate meeting, Bernanke's appointments included Lewis Ranieri ...
See all stories on this topic

 

_________________________________________________________________________

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/TRCpacific276_GJ.jpg

 

Inertia of dominant Summer patterns carries weather themes straight into October...

Full Story...

_________________________________________________________________________

Iranian Situation

 

Iran: An Opportune Time for U.S. Talks
http://www.stratfor.com/products/premium/read_article.php?id=296119

 

Iran summons French envoy over nuclear stance
AFP via Yahoo! News Wed, 03 Oct 2007 4:34 AM PDT
Iran on Wednesday summoned France's charge d'Affairs in Tehran over the country's tough stance on the Islamic republic's nuclear drive, state media reported.

 

_________________________________________________________________________

Opalesque’s Corner

 

- Editor's Note
- Opalesque Special Report: Big themes offer `once in a lifetime` opportunities in Russia, Central Asia, Eastern Europe,  Funds seek out frontier markets, MSCI, S&P create indices
- Absolute Capital Management`s final NAVs for August, Dutch hedge fund Holland Capital Management latest casualty of credit squeeze, Basis Capital allows withdrawals from its largest hedge fund
- Peregrine seals deal to control Stenham and expand its hedge fund business, MFS bets on hedge funds` long-term appeal, subsidiary Four Pillars Capital to provide seed capital, Citadel expected to use a flotation to finance strategic acquisitions, How M&G played CDOs to profit during the crisis
- White Papers: ML white paper: Active alternative assets will more than double by 2011, MPI Quantitative Research Series: The law of large numbers: an analysis of the Renaissance fund,
A case study in hedge fund replication and risk management, Algorithmic trading in the global FX market: The need for speed, transparency and fairness by FX ALL
- Parker FX index down -1.5.4% in August, top performer is KMJ Capital up 14.07%, CASAM CISDM indices August commentary
- Hedge funds are down but not out, Low-key quant strategy thrives in choppy market, Morningstar finds quant and 130/30 funds` average return last month was flat
- Global Investment House offers MENA sharia-compliant real estate fund
- Commodities: CQS to invest GPD50 mil in offshore rigs, Is the Ethanol boom over?, Top wealth advisor makes case for commodities
- People: Spencer Stuart to find new Harvard Management CIO, New hedge fund firm AlphaWorks hires CIO, New chief of investor relations at Brummer & Partners, HSBC names Barbara Rupf Bee alternatives chief for institutional sales
- UPDATE: Morgan Stanley scales back mortgage business, to cut 600 jobs, Struggling property loans burden banks, curb deals, Banks raise $170bn for funds to buy stuck LBO debt
- Financial Times to change web access, allows 30 free articles per month
- Panel picked to study auditing industry,  ECB chief urges regulators to investigate ratings-firms
- Exchanges: NASDAQ to acquire Boston Stock Exchange and key exchange assets for $61m, Execution Quality in the NYSE Market: NASDAQ MC, ARCA, Citigroup, Citadel Derivatives, Susquehanna and Fleet Meehan stand out, Qatar seeks approval to buy bigger stake in OMX
- Trading platforms: MTS abandons market-making model, Related article: GFI boss defends hedge funds` access to platforms, says banks should embrace the change
- Legal News: Refco investors sue Mayer Brown and Partner Collins, Portus` Boaz Manor cancels flight to Toronto, U.S. Commodity Futures Trading Commission continues its aggressive enforcement program and achieved record judgments during fiscal year 2007
- Northern Rock shares soar as buy-out group JC Flowers closes in, Sowood Capital spinoff to open London office
- UAE sees monetary union after 2015, project found behind schedule by more than five years
- Citi pays $4.6bn for control of Nikko, Nikko Cordial to be de-listed
- FT Insight: Don`t bank on Chinese consumer to save global economy
- Activist News: Fursa gets ready for action at Erinaceous, Suitors surface for SubSea, Fursa triples stake in Erinaceous, Cheyne Capital Management discloses 4.99% stake in Huntsman
- News Briefs: Euro falls as politicians express concern over currency`s gain,  Calpers to invest $1 billion in Asian property, Barclays may win by losing ABN as RBS pays a high price, Italy orders banks to check for credit risks
- ...And finally: Alabama couple, married as teens without parental approval in 1927, celebrates big anniversary
- Logon: http://www.opalesque.com/main.php?act=archive

_________________________________________________________________________

Misc. Items of Interest

 

How To Be A Supermodel
10.02.07, 6:00 AM ET - Kiri Blakeley
The odds are better in the lottery, but it isn't totally impossible. Here's how it happens.

 

'If you don't go after the network, you're never going to stop these guys. Never.'
BAGHDAD -- In the early spring of 2006, perhaps the most important document in Baghdad was known as the MOASS -- the Mother of All Spreadsheets-- a vast compilation of radio frequencies that insurgents used to trigger roadside bombs.
(By Rick Atkinson, The Washington Post)

 

Arctic ice island breaks in half *
The giant Ayles Ice Island drifting off Canada's northern shores has broken in two - far earlier than expected.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7022192.stm

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

 

distrait dis-TRAY, adjective:

Divided or withdrawn in attention, especially because of anxiety.

 

1952:  The first British atomic weapons test, called Hurricane, was successfully conducted aboard the frigate HMS Plym.

1945:  The May-Johnson bill, keeping the atomic bomb a secret and establishing security regulations, was introduced into the U.S. Congress.

1935:  Italian forces led by Emilio De Bono, under orders from Benito Mussolini, invaded Abyssinia (Ethiopia) in hopes of building a “new Roman Empire.”

1918:  Prince Maximilian of Baden, internationally known for his moderation and honourability, was appointed chancellor of Germany. 

1889:  German journalist and pacifist Carl von Ossietzky, recipient of the Nobel Prize for Peace in 1935, was born in Hamburg, Germany.

1866:  Through the mediation of Napoleon III, Italy obtained Venetia in the Treaty of Vienna.

1862:  The Battle of Corinth, an American Civil War conflict that ended in a decisive Union victory over Confederate forces in northeastern Mississippi, began.

_________________________________________________________________________

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:

 

_________________________________________________________________________

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

_________________________________________________________________________

Regulatory Info

 

 

_________________________________________________________________________

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.