Archive: 10/29/2007

Main News
 
Pledging Allegiance to the United States of Hedge Funds
New York Times - United States
Now, I am a little troubled by where this leaves the other hedge fund managers who are also making 40 percent a year for their hedge funds, both here and ...
See all stories on this topic
 
Housing market slump likely to continue into 2009 - and that's ...
Boston Globe - United States
Zelman paints a much darker picture than Federal Reserve chairman Ben Bernanke, who said last week that housing will be a "significant drag" on the economy ...
See all stories on this topic
 
US hedge funds shut out
Source: Sify.com
The doors may have shut for US-based hedge funds wanting to invest in India. That's because, SEBI chairman M Damodaran said on Thursday that only entities regulated in their own countries will be allowed to participate in the Indian markets through the participatory note route. More... <http://www.hedgefund-index.com/newstoday.asp>
 
 Merrill loss sparks speculation of Bloomberg stake sale
 Merrill Lynch could be looking to sell its 20% stake in US financial information business Bloomberg to raise capital after writing down $8.4 billion of assets in its third quarter.
 
Merrill Lynch CEO Stan O'Neal has decided to leave the firm in the wake of $8.4 billion in write-downs and an unauthorized overture to Wachovia, a person familiar with the matter says. An announcement on his departure could come today or Monday morning, this person said.
FORE MORE INFORMATION, see: http://online.wsj.com/article/SB119359304744274091.html?mod=djemalert
 
Japan's Nomura Posts First Loss In Four Years on Subprime Woes
Wall Street Journal - USA
... a ¥67.7 billion ($592.7 million) write-off on its US subprime mortgage business amplified the impact of slowdowns in almost every arm of its operations. ...
See all stories on this topic
 
Fannie, Freddie Portfolios Shrink
Firms Have Argued for Higher Investment Caps
(By David S. Hilzenrath, The Washington Post)
 
Countrywide Financial Corp. And Related Ratings Lowered One Notch And Kept On Watch Neg
The downgrades on Countrywide Financial Corp. (BBB+/Watch Neg/A-2), Countrywide Home Loans Inc. (BBB+/Watch Neg/A-2), and Countrywide Bank fsb (A-/Watch Neg/A-2) follow the company's sizeable third-quarter after-tax loss of $1.2 billion stemming from total credit-related provisions of $3 billion. The weakened state of the housing markets--combined with deteriorating credit performance within the prime home equity lines of credit portfolio--will further dampen profitability for the remainder of this year and could persist.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYTUCQTVsLgHxhilpuHQJhuV2VR
 
Default, Transition, and Recovery: U.S. Default Outlook: Changes In Credit Environment To Escalate Defaults In 2008 And Beyond
Financial market uncertainty continues, but we expect the number of defaults in the remainder of 2007 to remain suppressed among corporate nonfinancial and financial issuers. Our baseline forecast is for a 12-month forward speculative-grade default rate of 3.4% in the U.S., but given the number of defaults this year to date, we estimate that the default rate for 2007 will be no higher than 1.4%. The muted year-end projection signifies that corporate defaults--though slow to materialize--are on the upward leg of an ascent that will gain momentum in the second half of 2008 and likely continue into 2009.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYTUCQTVsLgHxhilpuHQJhuV2VT
 
Global
Credit Trends: Global Corporate And Sovereign Rating Actions: Third-Quarter 2007 (Premium Edition)
The credit markets put on a brave face by the end of the third quarter. Volatility--as measured by the Chicago Board Options Exchange's VIX index and the Deutsche Boerse's VDAX index--is back near its second-quarter level after having catapulted to its highest level in more than four years. The present lull is largely policy induced, aided by central banks around the world pumping liquidity into the interbank lending market. In response to this injection of funds, many of the abnormalities seen in the summer have been (at least temporarily) reversed.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYTUCQTVsLgHxhilpuHQJhuV2VW
 
Hot TopicAssessing the economic fallout of California's recent fires.
http://online.barrons.com/article/SB119344613495973592.html?mod=djemWR
 
1028 News of the Weird
Provo Daily Herald Sun, 28 Oct 2007 8:57 AM PDT
Junior New York City hedge fund trader Andrew Tong charged in October that his boss forced him to take female hormones to dampen his aggressiveness, which the supervisor said was leading him to make bad trades, according to a CNBC report. In his lawsuit against Mr.
 
Rangel Says House Will Approve Buyout-Firm Tax Rise Next Month
Bloomberg via Yahoo! News Fri, 26 Oct 2007 11:20 AM PDT
Oct. 26 (Bloomberg) -- The House will approve a bill raising taxes for buyout firms and hedge-fund managers next month, Ways and Means Committee Chairman Charles Rangel said.
 
HIS EXHIBIT OF GOYAS, POLLOCKS - & 'PONZIS'
New York Post Sun, 28 Oct 2007 2:38 AM PDT
Hedge-fund titan Roy Lennox had to wonder: What happened to his Goya? Two years ago, the Caxton Associates bigwig invested $50,000 with his good friend, the well-known art dealer Larry Salander, to buy a one-twelfth interest in the Spanish...
 
JPMorgan Greek Tragedy Sets 'Hero' Banker Against Old Bosses
Bloomberg - Friday October 26, 10:44 BST
 
Soros Slams Emissions Trading Systems
Responsible Investor - Friday October 26, 09:11 BST
 
US Hedge Funds Shut Out
Sify.com - Friday October 26, 08:36 BST
 
US companies lose taste for risk -- [at FT Investor]

By Saskia Scholtes and Francesco Guerrera MarketWatch
10/25/2007 4:05:27 PM
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Yield Curve Corner
 
Fed seen close to new communication steps
Conde Nast Portfolio - New York,NY,USA
The Fed launched a formal review of its communications strategy in the spring of last year when Bernanke appointed Fed Vice Chairman Donald Kohn, ...
See all stories on this topic
 
Three-Ingredient Recipe for Recession
Wall Street Journal - USA
Still, Fed Chairman Ben Bernanke's interest-rate cuts helped keep the recession as short and mild as those of 1990-91 and 2001. ...
See all stories on this topic
 
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Natural Disaster Corner
 
http://www.noaa.gov/
http://www.sec.noaa.gov/Data/index.html
http://tsunami.gov/
http://earthquake.usgs.gov/eqcenter/
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/FSMcalifornia299_G11.jpg
Tropical Storm Noel soaks Caribbean; warning issued for Haiti and ...
International Herald Tribune - France
A tropical storm warning and a hurricane watch were issued for southeastern parts of Cuba, including the US naval base at Guantanamo Bay holding some 330 ...
See all stories on this topic
 
Trailblazing
There’s a low-tech solution to California’s wildfires
Full article
 
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Iranian Situation
 
Bombing Iran Wouldn?t Be Just That
New York Times Sun, 28 Oct 2007 5:38 AM PDT
As the G.O.P. candidates display escalating toughness against Iran, experts say any attack would quickly escalate.
 
Missiles pose no threat, Iran says
UPI Sat, 27 Oct 2007 8:56 AM PDT
An Iranian minister said Tehran's missiles “bear no threat to any states” in response to claims that Iran will be capable of targeting U.S. cities by 2015.
 
U.S. Sanctions Against Iran Harmful for Future
NPR Sat, 27 Oct 2007 8:22 AM PDT
The Bush administration imposes sanctions on the Quds division of Iran's Revolutionary Guard Corps and banks with ties to the Guard, charging the Guard is a terrorist organization. These are the the first sanctions to target the armed forces of a foreign government.
 
Profile: Iran's Revolutionary Guards
BBC News Sat, 27 Oct 2007 4:25 AM PDT
A profile of Iran's Revolutionary Guards, set up after the 1979 revolution to defend the Islamic system.
 
Bunker-buster budget raises questions -DAWN - International; 12 ...
WASHINGTON: A report by a nonpartisan congressional research group says sharp increases in the proposed budget to build a "bunker buster" nuclear bomb ...
www.dawn.com/2004/03/12/int5.htm - 13k - Cached - Similar pages
 
Syria 'air strike site removed' *
Satellite images show Syria removed a large building from the presumed site of an Israeli air raid, a US institute says.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/middle_east/7063135.stm
 
Geopolitical Diary: Iran's Intense Foreign Policy Debate
http://www.stratfor.com/products/premium/read_article.php?id=297307

Iran's Air Defense Concerns
http://www.stratfor.com/products/premium/read_article.php?id=297335

Iran's Contingency Plan
http://www.stratfor.com/products/premium/read_article.php?id=297341
 
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Opalesque’s Corner
 
- Opalesque Exclusive: Seeding and incubating emerging LatAm hedge fund managers, Seeding Trends
- Research report from Man Investments: Ten years after crisis, Asia`s profound transformation makes it the place to be, Hedge fund investing in Asia,  Man announces shortlist for first Asian Literary Prize, Man Investments Canada partners with CIBC for protected notes combining AHL and Glenwood strategies
- Thames River to soft-close Warrior hedge funds,  After huge returns shorting subprime, Scion Capital is unwinding positions
- Swiss Dighton World Wide Investment to launch new multi-strategy portfolio, Lotus India to launch new quant fund
- Property derivatives: a lucrative way of bolstering returns, Survey: US groups lose taste for risk, will make it more difficult for banks and hedge funds to restore normality, Survey: Institutional investors to pump another $80-90 billion into HFs over the next 12 months
- Alpha rankings: Top onshore, offshore law firms, prime brokers, accounting firms, administrators
- Opalesque Exclusive: Voluntary hedge fund monitoring, U.S. and U.K. - a lawyer approves
- EU market chief to denounce credit `ugliness`, caution against a rush to regulate, Opalesque Exclusive: BoE says no outflows from hedge funds due to subprime, hedge funds were stabilizing markets
- MBIA`s $1.8 billion SIV having trouble raising money, Merrill may sell some Bloomberg stake to raise capital,  Buffett cautious on $75bn superfund, Buffett sees subprime woes lingering
- Cartesian says many HF managers simply use index futures as the `short` element
- Canadian hedge funds up 3.44% in September, 7.05% YTD
- Soros slams emissions trading systems, says as market practitioner, he sees the flaws, suggests flat carbon taxation, energy consumption
- CFTC seeks $1m fine for futures violations, Amaranth fine may signal more U.S. futures regulation
- Comment on U.S. tax code revamp: Mr. Rangel described his plan as eliminating benefits for a few in order to fund a broader benefit for many, Fearful market hopes for Fed cut
- People: DKR appoints senior managing director, Three new hires join Kinetic`s New York offices,  Tabb Group appoints MD to expands to Europe,  Goldman`s 299 Spartans
- Former  Allianz Hedge Fund Partners Collot, Ahlstroem form hedge fund marketing firm
- Tech Update: Altegris launches ManagedFutures.com as research and marketing site for managed futures investors and Commodity Trading Advisors
- Legal News: Hedge fund manager John Mangan cleared of part of SEC case, SEC settles charges against portfolio manager Geoffrey Brod for failure to disclose personal stock trades, US SEC sees `rampant` insider trading on Wall St.
- Exchanges: Eurex will launch Euro inflation futures in January 2008: New model, new asset class,  NYSE Euronext joins forces with BNP Paribas and HSBC to create a dark liquidity facility,  SGX plans to introduce Single Stock Derivatives
- Interest-rate hedge is cheaper in U.S. than in Europe
- U.K. to allow banks, hedge funds buy law firm shares
- German Cabinet passes `acting in concert` bill
- Norway: Peter Warren - Hedge funds have become scapegoats, Demand for onshore hedge funds intensifying in Norway
- India: Sebi proposes to limit P-Notes FIIs and also restrict operations by hedge funds in India,  Indian crackdown likely to hurt hedge funds, US to press India not to restrict capital flows
- RBI proposes tough norms for credit derivatives,  ISDA urges India to remove credit-default swap rating rule
- McKinsey Report: Tracking the growth of India`s middle class
- UMJ`s Hashimoto bets on Japan`s small caps, predicts rally
- Activist News: Update: Generaly up after Algebris` push, Algebris gets backing from European corporate governance body, Rumor: Facebook got additional $500 million from two New York hedge funds, CSX chief attacks fund`s `flawed` plans
- News Briefs: Federal Reserve starting hyperinflationary bailout of British banks, SEC offers high-tech substitute to annual meetings, ABX index hits record lows, First small to mid cap mutual fund extends into 120/20, Merrill CEO met Wachovia for possible merger, CLSA scores Asian companies on green awareness, Chinese bank pays $5.5bln for 20% stake and board representation in South Africa`s largest bank
- And Finally. Former mayor turned psychic routinely advises a U.S.-based hedge fund (amongst other things)
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
Venezuela Increasingly A Conduit For Cocaine
CARACAS, Venezuela -- Colombian drug kingpins in league with corrupt Venezuelan military officers are increasingly using this country as a way station for smuggling cocaine to the United States and Europe, according to Colombian and U.S. officials. The Bush administration's dismal relations with...
(By Juan Forero, The Washington Post)
 
Kremlin Seeks To Extend Its Reach in Cyberspace
Pro-Government Sites Gain Influence
(By Anton Troianovski and Peter Finn, The Washington Post)
 
Peer-to-peer lending
Social lenders seek to take advantage of bank turmoil ... more
 
SCIENCE NEWS
Gene switch altered sex orientation of worms
October 25, 2007 03:58 PM ET
CHICAGO (Reuters) - Altering a gene in the brain of female worms
changed their sexual orientation, researchers said on Thursday,
making female worms attracted to other females.
http://links.reuters.com/r/VAYF0/JP4W4/33HVJ/MR2TV/CPG4H/YT/t
 
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Funnies, Facts, Quotes, etc….
 
impecunious im-pih-KYOO-nee-uhs, adjective:
Not having money; habitually without money; poor.
 
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Conference, Courses, Books, Papers
 
Great Research Sites:
http://www.highbeam.com/
http://www.dealbreaker.com/
http://seekingalpha.com/
www.riskmterics.com
http://www.allaboutalpha.com/blog/
 
Merrill Lynch research Link to full report including important disclosures see example
http://rsch1.ml.com/9093/24013/ds/78763025.PDF
 
John Mauldin’s Weekly Analysis
www.frontlinethoughts.com
 
James Altucher’s Website:
www.stockpickr.com
 
Other useful sites:
www.theflyonthewall.com
 
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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
http://www.cogenthedge.com/home/inv_strategy.asp
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Regulatory Info
 
Commodity Futures Trading Commission (CFTC)
Division of Enforcement: +1 866-FON-CFTC
http://www.cftc.gov/enf/enfform.htm
http://www.cftc.gov/enf/enfform.htm
Securities and Exchange Commission (SEC)
e-mail: enforcement@sec.gov
http://www.sec.gov/complaint.shtml
http://www.sec.gov/complaint.shtml
Autorité des marchés financiers (AMF)
Ombudsman's office: +33 (0)1 5345-6464
French: http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=fr&Id_Tab=0
English: http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
Financial Services Authority (FSA)
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Financial Ombudsman Service: 0845 080 1800, outside the UK: +44 (0)20 7964 1000
complaint.info@financial-ombudsman.org.uk
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Hong Kong Securities and Futures Commission (SFC)
http://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
Investor Hotline: 852-2840-9333
investor.info@sfc.hkhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
 
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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.
 


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