Main News

 

Exclusive Interview: Investment Guru Jim Rogers Predicts More Pain ...
Money Morning - USA
Make no mistake: If that happens, there are two clear culprits - current Fed Chairman Ben S. Bernanke, and his predecessor, Alan Greenspan. ...

 

 

Simons, Mandel Post Biggest Drop in Hedge Fund Slump (Update1)
Bloomberg.com Tue, 08 Apr 2008 0:42 AM PDT
April 8 (Bloomberg) -- Hedge-fund titans James Simons and Stephen Mandel are showing the biggest losses of their careers in the $1.9 trillion industry's worst start in more than a decade.

 

The Bush administration appears set to support a significant expansion of its assistance for struggling homeowners, a move that could also forestall more aggressive action currently being contemplated by Democrats in Congress.
http://online.wsj.com/article/SB120769266029299359.html?mod=djemalertNEWS

 

Hedge Funds: Lansdowne still debating whether to go public, CEO says
Market Watch Tue, 08 Apr 2008 12:18 PM PDT
SAN FRANCISCO (MarketWatch) - Lansdowne Partners Ltd. is still debating whether to go public because the move would give the $19 billion London-based hedge fund firm a currency for acquisitions and another way to compensate partners and managers, Chief Executive Paul Ruddock said on Tuesday.

 

Hedge Funds: Marathon's Richards sees best distressed opportunities for 17 yrs
Market Watch Mon, 07 Apr 2008 6:33 PM PDT
SAN FRANCISCO (MarketWatch) -- Bruce Richards, chief executive of $12 billion hedge fund firm Marathon Asset Management, said on Monday that a "great" era of distressed debt investing is coming very soon as hundreds of companies file for bankruptcy.

 

 <http://www.hedgefund-index.com/newstoday.asp> Top quotes from the Hedge Fund Summit
Source: Reuters
Here are some of the top quotes from speakers attending the Reuters Hedge Funds and Private Equity Summit.

 

Hedge fund  <http://www.hedgefund-index.com/newstoday.asp> Sprott to gamble on IPO
Source: The Globe and Mail
Contrarian investor Eric Sprott is swimming against the tide again, planning an initial public offering of Sprott Asset Management Inc. in the midst of the worst IPO market in a decade. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Noted German academic duo ask Deutsche Bank to quit US
Ekkehard Wenger, a university professor and a prominent champion of change at many of Germany's biggest companies for two decades, and Leonhard Knoll, a fellow academic, have called on Deutsche Bank to spin off its investment banking activities within two years and pull back from the US.  (Financial Times)
http://mail2.efnmail.co.uk/r/354169/MTk4MTI1OjE2OTMy/

 

Citigroup is close to a deal to unload about $12 billion of leveraged loans and bonds to a group of private-equity firms. At the end of the fourth quarter, Citigroup reported holding about $43 billion of the leveraged loans. The pending deal with the private-equity firms, which includes Apollo Group, TPG and Blackstone Group, would remove a significant chunk of that portfolio.
http://online.wsj.com/article/SB120769075480499305.html?mod=djemalertNEWS

 

Leveraged Finance: A Call For Greater Transparency In The European Leveraged Finance Market
The liquidity crunch and subsequent collapse in investors' confidence exposed significant structural weaknesses in the European leveraged finance market. Specifically, borrower-friendly structures, coupled with a dearth of public credit ratings, obscured the credit quality of leveraged transactions and adversely affected pricing. With default risk rising on the back of an economic slowdown in the U.S. and Europe, greater transparency is vital.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc6?kHiQABDWQUVsLgHxhilpuHQJhuV2VSY

 

Ratings On Four CDO Of ABS Transactions Lowered To 'D' Following Liquidations
We lowered our ratings on 33 classes of notes from four collateralized debt obligation (CDO) transactions to 'D'. All of the affected transactions are CDOs of asset-backed securities (ABS) backed substantially by U.S. residential mortgage-backed securities. The rating actions follow notice from the trustees that the transactions have liquidated the portfolio collateral and have distributed or are in the final stages of distributing the proceeds to the noteholders. In aggregate, the affected CDO tranches have an issuance amount of approximately $3.615 billion.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc6?kHiQABDWQUVsLgHxhilpuHQJhuV2VU

 

Bubbles Aren't Bubbles - Or Are They? <http://seekingalpha.com/article/71591-bubbles-aren-t-bubbles-or-are-they?source=i_email> 
by Paul Kedrosky <http://seekingalpha.com/author/paul-kedrosky?source=i_email> 

 

Shorting ETFs in 1X0/X0 Portfolio Could Be Beneficial <http://seekingalpha.com/article/71519-shorting-etfs-in-1x0-x0-portfolio-could-be-beneficial?source=i_email> 
by Christopher Holt <http://seekingalpha.com/author/christopher-holt?source=i_email> 

 

AIMA defends hedge funds after shorting 'scandal'
ifaonline.co.uk - London,UK
By Scott Sinclair The Alternative Investment Management Association (AIMA) has leapt to the defence of hedge funds as the industry comes under fire ...

 

 

"Bottom fishing" of global financial stocks risky: Merrill Lynch
April 08, 2008 08:12 AM ET
(Reuters) - Investors should resist the temptation to time the
bottom in global financial stocks based on their perceived undervaluation,
said Merrill Lynch chief investment strategist Richard Bernstein,
who views "bottom fishing" of financial stocks as risky.
http://links.reuters.com/r/KT2XP/DREQW/L7KJV/JJRGG/19BZQ/YT/t

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Yield Curve Corner

 

Greenspan: No Regrets
The most contentious campaign of the year isn't between Obama and Clinton, it's over the legacy of Alan Greenspan. Read More

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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/FSHSaustralia099_MO.jpg

 

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Iranian Situation and Other Man Made Disasters

 

Iran says it's installing new centrifuges
International Herald Tribune Tue, 08 Apr 2008 8:42 AM PDT
Iran said that it had started increasing its capacity to enrich uranium despite a demand by the United Nations Security Council to halt the program.

 

Geopolitical Diary: Levantine War Rumors and the Iraq Situation
April 8, 2008 0112 GMT
April 7 saw signs of progress in U.S. negotiations with Iran over Iraq. At the same time, the watch for signs of potential war in the Levant continued.
http://www.stratfor.com/geopolitical_diary/geopolitical_diary_levantine_war_rumors_and_iraq_situation

 

Gen. David Petraeus described the security situation in Iraq as improved since he last testified before Congress in September, but still fragile and reversible. The Iraq war commander told a Senate Armed Services Committee hearing that he recommends a 45-day "period of consolidation and evaluation" in July before deciding when to resume troop reductions. Sen. John McCain and Sen. Hillary Clinton are expected to use the morning committee hearing to showcase their opposing views on the war. Sen. Barack Obama will get his chance later this afternoon as a member of the Foreign Relations Committee.For more information, see: http://online.wsj.com/article/SB120766151867797881.html?mod=djemalertNEWS

 

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Opalesque’s Corner

 

- Performance:  Hedge fund titans James Simons, Stephen Mandel post biggest drop in hedge fund slump,  FoHFs manager Gottex`s AUM up 129% to $16bln, net profits up 39%, CEO expects another year of growth, Swedish Nektar lost money on turbulence in the bond market, Platinum down 5% following downgrade, Comment: the bubble has popped, Hedge funds face tough 2008 but Asia better placed (video)
- Fund Profiles: Opalesque Exclusive: Swiss SRI FoHFs looking for new institutional investors, to add new managers to portfolio, Following last summer`s losses, quants are pressing into new realms of science in an effort to prosper again, how Thales does it
- New Launches: SVM launches two new funds for AAA-rated McLean, Blue Horizon launches global long/short hedge fund, HSBC Halbis plans India mid-cap hedge fund, Kenmar launches global agricultural and soft commodities FoF, >Fidelity Investments and Nicholas-Applegate Capital Management separately announced the launch of new 130/30 funds
- Assets: ADM Capital to raise $1bln for distressed debt fund,  QSAM's AUM increased by 58% to $1.5bln in 2007
- Fund Closures: Basis fund withdraws bid for U.S. protection as it liquidates, Hedge fund closures: Ebola or just a nosebleed?
- Seeding: MD Sass seeds emerging activist manager
- Listing: Hedge fund Sprott to gamble on IPO, hopes to raise as much as $1.5b with stock sale
- Indices: Hennessee Fund Index declines -1.9% in March, Hedge Funds Down 4.42% in 1st Quarter of 2008; Barclay Hedge Fund Index Drops 2.40% in March, Derivatives Index reflects optimism
- HF Associations: MFA (US) and AIMA (UK) join forces to establish global voice for alternative asset industry
- AIMA: Hedge fund industry the target of unreasonable criticism, market turbulence offers both challenges and opportunity for managers
- Opalesque Exclusive: Man Investments` report on hedge fund investing in distressed securities
- Opalesque Exclusive:  Horizon publishes cash management guide as in wake of rising importance of asset class
- Credit Crunch Update: Hedge funds need to be creative to keep investors` assets, Chasing opportunities (video), Regulators to look at potential UBS breaches, Lehman puts the squeeze on short-sellers, Liquidators sue Bear and Deloitte over last year`s hedge fund losses, Citigroup to cut European leveraged-finance team in half
- People: Opalesque Exclusive: Teneo Partners co-founder moves to Rheos Capital Works, Fortune announces further additions to London team, Carmignac Gestion names new co-manager to market neutral fund, Henderson fund of funds co-head Gladstone takes five month sabbatical
- Top-earning Fund Managers: Paulson set a new record on Wall Street in 2007, Chris Hohn not hedged in by credit crisis
- Institutions: Opalesque Exclusive:  Mercer reports US pension plans lose $70bln in turbulent quarter, European plans' exposure to alternative assets expected to increase in 2008, Ivy League asset allocation excites Wall Street, Massachusetts state pension will only rely on fund of hedge funds
- Legal: Update:  Bayou creditors say Goldman unit hasn`t responded to subpoena, San Diego hedge fund manager gets 6 years for defrauding investors
- Prime Brokers: Current wave of hedge fund deleveraging seems to be over says HSBC Halbis, Competition among prime brokers to service hedge funds has intensified with Bear`s troubles, Global custodian survey ranks Bear Stearns prime brokerage services one of the industry's best
- Commodities: Oil trades near $109 as investors seek returns from commodities, Investors increased long position in copper futures
- Asia: Baring Emerging Market Income Fund allocates to Asian equities, Regulators riled by banks renting out QFII quotas, hedge funds stuck in a queue, Convertible issuance in Asia booming partly due to growing number of hedge funds
- Australasia: Australia`s Select Alternatives Portfolio celebrates 4th year, so far keeping the promise of asset protection
- Sovereign Wealth Funds: Japan hopes to lure sovereign investors
- Activist News: Icahn drops lawsuit and Motorola agrees to seat Meister,Borders outlines financing deal with lower cost to bookseller, Harbinger presses Media General on business strategy, Cambrian Mining shares leap as activist hedge fund pushes for changes
- News Briefs: OpHedge expands services in Singapore and New York, IMF to shed staff and sell gold, Going to extremes with supercharged ETFs, AHMSA gears up to reopen King Solomon`s mines
- And Finally. Termite infestation not noted in trader`s due diligence of bank
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

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Funnies, Facts, Quotes, etc….

 

voluble VOL-yuh-buhl, adjective:

1. Characterized by a ready flow of speech.
2. Easily rolling or turning; rotating.
3. (Botany) Having the power or habit of turning or twining.

 

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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.