Main News

 

Bear names chief investment strategist
Bear Stearns & Co.  appointed Jonathan Golub, formerly a J. P.  Morgan U. S.  equity strategist, as chief investment strategist and senior managing director. 
... READ FULL STORY >>>

 

EUROPE – New figures highlighting the damage caused by the sub prime crisis reveal that the tidal wave of redemptions from institutional and retail investors amounted to €70bn.

 

Europe's Credit Strength Stands Up To The Global Liquidity Squeeze
The tighter lending standards and higher risk premiums resulting from this summer's U.S. subprime troubles accentuate the global economic slowdown and increase the pressure on credit quality in Europe. Although conditions have eased slightly in recent weeks, investors are clamoring for transparency from banks to lift the psychological overhang relating to exposures to U.S. subprime real estate, yet-to-be-syndicated LBOs, and market value transactions. In spite of this market caution, we believe that credit fundamentals remain broadly unchanged across all asset classes in Europe.
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Goldman reveals effect of credit squeeze -- [at FT.com]
By Ben White in New York FT.com
10/10/2007 6:55:25 PM

 

WESTPORT, Conn. (HedgeWorld.com)—While many investors seem to think that the worst is behind us, some of the most respected voices in the hedge fund community remain cautiously pessimistic. ......

 

TRADING PLACES
 By PAUL THARP  and RODDY BOYD
One of the world's richest and most secretive hedge funds is telling its traders to swallow female hormones to trade better, a lawsuit claims.  The bizarre twist on how to get wealthy fast swept across Wall Street's trading desks amid ribald...
full story: http://www.nypost.com/seven/10112007/business/trading_places.htm

 

Citigroup, under pressure to deal with the credit-market fallout, said it will merge its investment-banking and alternative-investments operations into a combined unit run by former Morgan Stanley executive Vikram Pandit, who is considered a potential successor to CEO Charles Prince. Thomas Maheras, the co-head of investment banking who is highly regarded inside the bank and also was considered a potential successor, is leaving the company amid the shake-up.
http://online.wsj.com/article/SB119215044797956833.html?mod=djemalert

 

UK Hedge Fund Group Moves Towards Self-Regulation In The Industry
Nasdaq Thu, 11 Oct 2007 1:54 AM PDT
(RTTNews) - The UK-based Hedge Fund Working Group, which represents 14 of the largest funds in the nation comprising over £180 billion in assets, Wednesday published a consultation paper suggested a number of reforms aimed at increasing transparency and accountability in the industry.

 

Galleon Captain's hedge fund down more than 9% in September
MENAFN Thu, 11 Oct 2007 2:05 AM PDT
Galleon Captain's hedge fund down more than 9% in September

 

Secret hedge fund stakes could be flushed out
Financial Times Thu, 11 Oct 2007 3:06 PM PDT
Companies could be given powers to force hedge funds to declare secret stakes held through derivatives if proposals being considered by the City regulator are approved.

 

Hedge Funds Look to Voluntary Code
BusinessWeek Thu, 11 Oct 2007 2:05 PM PDT
To increase transparency, a hedge fund group calls on investors to sign on to a code regulating disclosure and conflict of interest in the complex industry

 

The 20 Rising Stars of Hedge Funds
Source: Institutional Investor
Institutional Investor News' inaugural issue of Rising Stars of Hedge Funds presents 20 up-and-coming executives from around the world who are likely to impact the global hedge fund and alternative investment industry. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Does Alpha Really Matter? Evidence from Mutual Fund Incubation, Termination and Manager Change
by Richard B. Evans
The assumption that market participants risk-adjust when measuring performance is common in finance. However, empirical research has shown that raw returns play an important role in retail investment decisions. As financially sophisticated investors, fund management companies understand the importance of risk-adjustment, but be-cause their profits depend on retail investment, raw returns may influence company strategy... More... <http://www.hedgefund-index.com/s_alpha.asp>

by Susan M. Mangiero

 

by Christopher Holt

 

 

US foreclosures double in September -- [at FT.com]
By Ben White in New York FT.com
10/11/2007 12:40:24 PM

by Bespoke Investment Group

 

Ten Ways to Defuse Shareholder Activists
The Web allows aggressive investors to build powerful campaigns against management. Here's how to deal with them.

 

Jersey Opens Door To HFs
The Channel Island of Jersey is trying to lure European hedge fund managers and institutions with the introduction of two new fund classifications that require no regulatory approval. More

 

SIVs forced into deleveraging -- [at FT Investor]
By Paul J Davies MarketWatch
10/11/2007 3:15:13 PM

 

Quants' tail of woe

Jayne Jung reports

Liquidations of large quantitative equity portfolios prompted widespread misfiring of hitherto robust quant models.

 

The risk of one

By Mark Pengelly

Recent high-profile hedge fund failures have burnt some dealers offering single hedge fund-linked derivatives.

 

Why Saudi Arabia is right not to revalue -- [at FT.com]
By John Sfakianakis FT.com
10/10/2007 1:45:13 PM

 

Niederhoffer's fund in trouble after key investor pulls money
The roller-coaster career of maverick trader Victor Niederhoffer took a sharp downturn after losses mounted and a key investor withdrew money from his firm, demonstrating how the market's recent volatility has shaken even some veterans.  (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/318884/MTk4MTI1OjE1MzI0/

 

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Yield Curve Corner

 

Fed's Mishkin Reiterates Support for Inflation Target in Book
Bloomberg - USA
The Fed governor's support for price goals dates to the mid-1990s, when he began collaborating on research with Ben S. Bernanke, who became Fed chairman in ...
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/DSTmiddleEast284_MO.jpg

 

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Iranian Situation

 

Azerbaijan Increasingly Caught Between Salafism and Iran

By Anar M. Valiyev

After the collapse of the Soviet Union, Azerbaijan became a battleground for many religious groups, sects and radical organizations. Being a predominantly secular society, Azerbaijanis cautiously watched the appearance of new religious movements. Neighboring countries such as Iran, Turkey as well as the Arab Gulf countries consider Azerbaijan as a strategic arena to expand their influence, often through religion. As a result of the absence of a strict policy toward religious groups, Azerbaijan became a haven for various religious organizations that preach opposite and contradictory ideas. Moreover, representatives of various sects clash with each other over influence in the country. For the past couple of years, the struggle between Shiites supported by Iran and Salafis (mostly supported from the North Caucasus and the Arab world) has intensified.READ FULL STORY

 

Kidnapped Japanese 'in good condition': Iran
AFP via Yahoo! News Thu, 11 Oct 2007 12:06 PM PDT
A Japanese student kidnapped in Iran is in good condition after being taken by a bandit who is seeking to exchange him for his recently arrested son, a security source was quoted as saying Thursday.

 

Politicus: Sarkozy tries charm, but Putin isn't budging on Iran arms question
International Herald Tribune Thu, 11 Oct 2007 7:06 AM PDT
One more time, Vladimir Putin of Russia has told the world that Iran isn't working on a nuclear bomb. This time, Nicolas Sarkozy of France was left to stammer in the face of Putin's stonewalling on the issue.

 

IRAN:  About 400 Iranian Kurds belonging to the Sunni Maktab Quran religious group have been arrested, Italy's Adnkronos International news agency reported. The arrests occurred over the past three days in the city of Saghez and other parts of Iran's northwest Kurdistan region. The Maktab Quran group disapproves of clerics having a role in government.

 

Nobel for Writer Doris Lessing
The Swedish Academy today awarded the Nobel Prize in Literature to Doris Lessing, calling her "that epicist of the female experience, who with skepticism, fire and visionary power has subjected a divided civilization to scrutiny." The works of Ms. Lessing, a British writer who was born in Persia in 1919, include "The Grass is Singing," the semi-autobiographical Children of Violence series, "The Golden Notebook" and the "Canopus in Argos" series.

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Opalesque’s Corner

 

- Editor's Note
- London hedge fund group led by former deputy governor of BoE releases consultation paper, calls on hedge funds to sign industry-wide code of practice, Download links, Member list,  Fink: Pressure from peers, investors may work,  Investors in UK-managed hedge funds could be charged levy for new standard-setting industry body, FT Comment: Closed and small funds should not be afraid of joining<
- Opalesque Exclusive: Harbinger Capital Partners Offshore Fund continues winning streak, 5.54% up in September, YTD: 65.18%,  Fremont shares jump after Harbinger discloses 9% stake
- Opalesque Exclusive: `Slow and methodical thinkers` behind Naissance Beagle fund achieve 12.5% in September, 33.1%YTD
- Opalesque Exclusive:  Macro views part 2 - The Bedrock plays
- Galleon hedge fund down 9% in September, -20% YTD,  HSBC shuts down macro fund
- Morgan Stanley disclosed quantitative strategies lost $390m on one August day
- Barclay Hedge Fund Index up 2.68 in September, 9.05% YTD
- Update: HFR: Hedge fund capital flows positive in August, industry assets decline $26bln on performanced, despite volatility, investors allocate $8.86bln in new capital, $5.8bln through FoFs
- Asset-based lending funds live up to promise
- Montier Partners adds Asia expert, AIG Investments hires head of Americas institutional sales
- Jefferies donates all commissions on October 15
- ETG Capital opens energy hedge fund,  Torkelund launches global macro hedge fund, TS Capital launches unlevered $200m FoF, JPMorgan setting up distressed debt fund
- CalPERS mulls massive global equity restructuring, manage beta internally and keep only `truly alpha-generating managers`, hedge fund`s role may increase
- Advisors see alternatives on the rise, pension`s large cap exposure to fall from 64% to 21%, mutual funds become shorters,  Icelandic fund reveals 10% alternatives target
- Study: European institutions` 130/30 appetite tops EUR 6bn, big firms in massive roll-out
- Resources seen as key attraction for $30bln Canadian hedge fund industry
- Committee of European Banking Supervisors releases report on risks of commodities business, firms
- New York hedge fund adviser Sandell to pay over $8m for improper shorting after Katrina hurricane
- The mother of all paper chases: Judge orders former PlusFunds execs, service providers `to  produce documents and appear for examination`
- Eustace case highlights administrator`s failings to policy falsified valuations
- Ex-partner at law firm pleads guilty in class-action kickback case
- Brazilian hedge fund manager with long-term views focuses on low vol, high yield: 47.9% p.a.
- EEX and Eurex to cooperate in CO2 trading, Boost for carbon trading auction scheme in UK
- ICAP agrees to acquire Traiana
- Background: benchmark index for leveraged loans LCDX finds increased volatility with higher liquidity
- Trichet signals tentative signs of improvement in the money markets credit situation, Report says banks may have to hold $400 billion in leveraged buyout loans for months to come, Pequot`s Wien warns about recession
- WSJ: Subprime is not a low-income issue,  Subprime lending must continue, says Fed`s Rosengren
- NY Post: PE law could be attached to broader bill
- AbCap investors hire top City solicitors to form action group opposing company`s rescue plans
- Update: Northern Rock jumps over 40% as funds buy in, D.E. Shaw with 1.05% stake, Andra AP-Fonden buys 1m shares in Northern Rock, lifts stake to 1.312%
- Finnish FoHF eQ Active Hedge joins Nordic Hedge Fund Index
- Comment: Why Saudi Arabia is right not to revalue
- Asia`s largest manager of funds of hedge funds expands team, distribution
- China more billionaires than any country except the United States: from 15 to 108 in one year, two women on top
- Hong Kong aims to become Islamic finance hub
- Banks in Japan need better service for new rich
- BOJ should raise rates to help Yen, Asia Genesis says
- Activist News: ABN Amro Chief Groenink to resign as takeover nears
- News Briefs: Deutsche pushes HFs at private clients, Women make headway in private bank`s male world, Private offering platforms proliferate, Morgan Stanley gets merchant bank status in India after splitting JV, GCC states to announce common market soon
- ...And finally: Doc, can I get this too? Aussie hospital keeps Italian tourist alive with intravenous feed of vodka
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

 

Material Girl To Cash In?
10.11.07, 3:41 AM ET - Louis Hau
Madonna is reportedly close to signing a new recording contract with concert promoter Live Nation. But the deal is less than it seems.

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Funnies, Facts, Quotes, etc….

palindrome PAL-in-drohm, noun:

A word, phrase, sentence, or verse that reads the same backward or forward.

 

2002:  The U.S. Congress passed a bill, by a wide margin, granting U.S. President George W. Bush broad authority to use force against Iraq.

2000:  In a ceremony in London, the International Women of the Year Association awarded the title Greatest Woman Achiever of the Century to Russian cosmonaut Valentina V. Tereshkova, the first woman in space.

1976:  In China the Gang of Four, having lost their influence with the death of Mao Zedong, were arrested.

1974:  The Nuclear Regulatory Commission (NRC) was established by President Gerald R. Ford to oversee the civilian use of nuclear materials in the United States.

1958:  The unmanned U.S. deep-space probe Pioneer 1 was launched into lunar orbit.

1899:  The South African (Boer) War began between Great Britain and the two Boer (Afrikaner) republics—the South African Republic (Transvaal) and the Orange Free State.

1890:  The Daughters of the American Revolution (DAR) was organized.

1531:  Protestant troops under Jörg Göldli were defeated by Roman Catholic troops at the Battle of Kappel during the Swiss Reformation.

 

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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.