Main News

 

Sebastian Mallaby Valiantly Defends Hedge Funds

by Christopher Holt

 

President's Working Group's 'Best Practices': Hot Air Alert

by Greg Newton

 

Hedge funds stick toe in oversight water
By Greg Robb MarketWatch
4/15/2008 3:15:00 PM

WASHINGTON (MarketWatch) -- The hedge fund industry, coaxed by Treasury Secretary Henry Paulson, has stuck its toe into the frigid waters of federal oversight. 

 

Two-Thirds Snub 130/30s
Two-thirds of institutions don’t invest in130/30 strategies and have no immediate plans to do so.

By MARK DeCAMBRE

Bad blood could be stirring between JPMorgan Chase CEO Jamie Dimon and Ken Griffin, the Wall Street wunderkind who's beefing up his buzz-gathering hedge fund. Griffin, the 39-year-old founder of the $20 billion investment fund Citadel, recently...full story

 

Hedge funds start wading into pools of distressed securities
Hedge fund managers are about to launch funds to invest in distressed or undervalued securities that were hurt in the credit squeeze. Union Bancaire Privee and Gottex Fund Management, both of Switzerland, have announced such plans. Bank of America and BNP Paribas estimated that the global backlog of unsold debt on the balance sheets of banks, which represents just a part of the total opportunity, was at roughly $282 billion earlier this year. Financial News Online (16 Apr.)

 

LONDON (Reuters)—Funds of hedge funds are likely to limp through much of 2008 as managers shun high octane bets in the face of the ongoing global credit crisis, a Reuters poll showed. The survey of 11 managers taken in the first two weeks of April from firms with about $100 billion under management, showed a growing sense of pessimism over fortunes for this year as they pile out of leveraged trades, build up cash and hunt for opportunities among the debris of the credit crunch. ......

 

Tough Tests For TIAA-CREF CEO
Source: Defined Contribution & Savings Plan Alert
Former Swiss Re America Holding chairman Roger Ferguson has taken over as TIAA-CREF’s president.

 

More rules on Wall Street. Banking executives say they will welcome greater regulation in the $62T credit derivatives market, which were largely responsible for about $250B (so far) of losses and writedowns in the U.S. subprime breakdown. Currently, tracking of the over-the-counter trades is spotty at best. Then again, two years ago billion dollar trades were recorded on scraps of paper in a manner described by former Fed chairman Alan Greenspan as "appalling."

 

Goldman shorting WaMu. In case you're wondering why Goldman's call Friday to short Washington Mutual (WM) sent shares reeling, it's because while Sell recommendations from Wall Street firms are a rarity (just 5.7% of all recommendations), advising clients to sell a stock short is so unheard of Thomson Financial doesn't even track it. Oh, and WaMu is a Goldman client. That said, hedge fund manager Whitney Tilson says even a Sell recommendation is an analyst's CLM - career limiting move. "It's much easier to put a 'hold' on it and quietly tell your best clients it's a toxic piece of dung." One-time analyst Andy Kessler notes sell-side research is becoming "increasingly irrelevant and the analysts are going to have an increasingly harder time getting paid... Hen ce the 'louder' calls."

 

Lie-bor?
Questions grow about a major rate. Read More

 

Basel bank watchdog plans crackdown on risk
April 16, 2008 06:38 AM ET
ZURICH (Reuters) - The world's top bank regulator launched a
crackdown on Wednesday in response to the global credit crunch,
saying it aimed to raise the costs of complex debt securities
and risky practices.
http://links.reuters.com/r/04S1Z/MH1WP/618ZN/6MKVT/5NWQ7/YT/t

 

The Impact of the Beijing Olympics on Commodities Prices

by Ed Kim

 

 

 

Global hedge fund assets hit $2.65 trillion
Reuters - USA
LONDON (Reuters) - Global hedge fund industry assets rose to $2.65 trillion (1.34 trillion pounds) at the start of 2008, data group HedgeFund Intelligence ...

 

 

GLG: Convicted Crooks Restate Results

by Greg Newton

 

Ratings On 559 Classes From 103 U.S. Subprime RMBS Deals Issued In 2007 Placed On Watch Neg
We placed our ratings on 559 classes from 103 U.S. residential mortgage-backed securities (RMBS) transactions backed by U.S. first-lien subprime mortgage collateral rated between January 2007 and June 2007 on CreditWatch with negative implications. The affected U.S. RMBS classes represent an issuance amount of approximately $57.1 billion, or approximately 42% of the par amount of U.S. RMBS backed by first-lien subprime mortgage loans rated by Standard & Poor's during the first half of 2007.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc6?kHiQACSTQTVsLgHxhilpuHQJhuV2VW

 

Liquidity Management: Two Case Studies
Click here to read these case studies.

 

Cyberwarfare 101: Black Hats, White Hats, Crackers and Bots
April 16, 2008 1326 GMT
Skilled cyberwarriors can be fiercely individualistic and anonymous, though several broad classifications help give definition to the community and highlight some of the major types of actors in cyberspace.
http://www.stratfor.com/analysis/cyberwarfare_101_black_hats_white_hats_crackers_and_bots

 

What is the Board’s Role in Enterprise Risk Management?

Peter J. Simone Cymer, Inc. Watch now (Run time: 2:39)

 

Reuters
New York City hedge funds earned USD20 billion to USD39 billion last year, far outstripping the profits of Wall Street banks and demonstrating how outdated the city's tax system risks becoming, a new study said on Tuesday. The Fiscal Policy Institute, the New York-based think-tank that issued the report, wants hedge funds and their private equity brethren to pay higher taxes, echoing a call by some Congressional representatives.

 

Temasek reveals additional $600m Merrill investment
Temasek, the Singapore state investment company, on Tuesday said that it had invested an additional $600m (?379m) in Merrill Lynch in February, in spite of suffering a paper loss on its earlier $4.4bn investment in the US investment bank late last year.  (Financial Times)
http://mail2.efnmail.co.uk/r/355921/MTk4MTI1OjE3MDAw/

 

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Yield Curve Corner

 

Dear Mr. Bernanke,
Seeking Alpha - New York,NY,USA
I realize you're not the most popular guy in the financial world. Heck, many financial writers have made entire careers out of lampooning you and your ...

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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/TRCneoguri107_GJ.jpg

 

Forecast for big sea level rise *
Sea levels could rise by up to one-and-a-half metres by the end of this century, according to scientific analysis.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7349236.stm

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Iranian Situation and Other Man Made Disasters

 

Foreign powers mull 'incentives' for Iran during nuclear talks
AFP via Yahoo! News Wed, 16 Apr 2008 11:53 AM PDT
Talks in China on Iran's nuclear program are focusing on possible "incentives" rather than purely punitive measures against Tehran, State Department spokesman Sean McCormack told reporters Wednesday.

 

Iran questions need for OPEC to cool oil prices
Reuters via Yahoo! News Wed, 16 Apr 2008 2:48 AM PDT
Iran's oil minister on Wednesday questioned the need for OPEC to hike production to cool surging oil prices, snubbing calls for more crude from its Western foes, the United States and Britain.

 

Geopolitical Diary: Iran’s al-Sadrite Problem
April 16, 2008 0247 GMT
Shiite leader Muqtada al-Sadr is proving to be a problem for Iran and his influence could play a key role in preventing the Iranians from dominating Iraq in the long run.
http://www.stratfor.com/geopolitical_diary/geopolitical_diary_al_sadr_political_player_pawn

 

 

Analysis: How Iranians are Avoiding Sanctions. April 14, 2008 The Financial Times Anna Fifield in Tehran. When Shahrom, a Tehran developer, ...
www.iranvajahan.net/cgi-bin/news.pl?l=en&y=2008&m=04&d=14&a=10 - Similar pages

 

 

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Opalesque’s Corner

 

- LatAm: Opalesque Exclusive: True pan-LatAm long/short fund looking for seeders
- Niche Investing:  Opalesque Exclusive: Life insurance investing in hedge fund format with Global Secured Capital
- Fund launches: VC Sequoia may raise $750m hedge fund, Halsey IM launches FoHF
- Fund profile: Structured Portfolio Management adapts to stages of credit crisis, most recent fund focuses on mortgage repayments` knock-on effect, Hedge funds set to pounce on banks` distressed structured assets
- Seeders:  Wood Creek looks to boost seeding platform
- Opalesque Exclusive: MVP FoF hires Deutsche Bank HedgeWorks as administrator, FoF withstands market downturn
- Assets: Henderson reopens hedge funds for new money
- Strategies: Volatility is blessing and a curse for volatility arbitrage HFs
- Indices: Credit Suisse/Tremont Hedge Fund Index down 2.11% in March, HFRI: most indices down in March 2008, HFRI Fund Weighted Composite Index returned -2.16%
- Trends: Rothstein Kass Survey: US hedge fund managers don`t see industry assets drop, Reuters poll show FoHFs likely to struggle in 2008
- Manager profile: BlackRock`s Fink picks up investors` emergency calls
- Regulatory News:  MFA and AIMA welcome reports by President`s Working Group on best practices for the hedge fund industry, Non-binding steps designed to minimize risks and to ward off greater oversight from Washington, New `best practices` urged for giant hedge funds, Comment: Although hedge funds need tightening up, resembling banks won`t eliminate risk, Hot air alert, Connecticut Attorney General calls Treasury`s hedge fund proposal `meaningless`, U.S. hedge fund oversight needs teeth, say critics, Laven calls for standardised hedge fund valuations
- Basel Committee on Banking Supervision announces steps to strengthen the resilience of the banking system
- Tax Update: Fiscal Policy Institute study concludes New York`s hedge funds ought to pay unincorporated business tax, Offshore funds wanting to buy into distressed debt seek tax benefit in U.S., Concessions help UK regain role as tax haven
- Credit Crunch Update: UBS faces three-year fight for reputation,  Merrill Lynch expected to report another quarterly loss and billions of dollars in new mortgage-related write-downs, Wall Street analyst predicts further $11bln write-down at Citigroup, SEC and FTC launch inquiries into Bear Stearns, OECD predicts subprime losses to hit $420bln, Celent: Subprime mortgages, an autopsy and a prognosis
- Legal: Gradient filed a cross-complaint against Overstock and CEO Byrne
- People: GLG Partners` Coffey may leave to start own fund, people say, Gardner Finance adds key staff in recent expansion, Riskdata appoints New Managing Director for EMEA
- Institutions: GAM receives institutional mandate from Iowa
- Environmental Trading: Hedge fund cash chases after limited number of projects
- Commodities: Energy hedge fund Sector IM eyes uranium, Commentary - Beijing Summer Olympics` impact on commodities prices
- Europe: Opalesque Exclusive: Cairn succeeds Sailfish as collateral manager for White Marlin CDO, Threadneedle launches Italian business with Milan office, European growth prospects deteriorating as housing crunch bites, 1.4% rise predicted
- Event: Tokyo Hedge Fund Club`s Summer party on 26 June
- Art prices plunge by 7.5% in Q1, number of sales down 18%
- Sovereign Wealth Funds: India considers setting up sovereign wealth fund
- Activist News: Government panel opposes TCI`s J-Power proposal, Proxy firm backs dissident Media General board nominees, Breeden raises his stake to 3.2% in H&R Block, Activists reveal cracks in Italian monolith, Atos to warn against hedge fund candidates
- News Briefs: SEC launches new offensive to alert investors about phony investment solicitations, Credit Suisse to offer OTC index derivatives on the Russian equity flagship RTS Index
- And Finally. Pier`s Ferris wheel up for sale on eBay, buyer to handle shipping costs
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

The Olympics: A Pro-China Backlash Begins
April 16, 2008 1135 GMT
Nationalism awakened, the Chinese diaspora is planning a series of pro-Beijing demonstrations in Europe and elsewhere -- but the show of support is at best a mixed blessing for the government of China.
http://www.stratfor.com/podcast/olympics_pro_china_backlash_begins

 

Front of House Receptionist, Boutique Hedge Fund
Guardian - UK
This is a great opportunity for an experienced Corporate Receptionist to work for this growing hedge fund where your flexible and eager to please manner ...

 

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Funnies, Facts, Quotes, etc….

 

miasma my-AZ-muh; mee-, noun:

1. A vaporous exhalation (as of marshes or putrid matter) formerly thought to cause disease; broadly, a thick vaporous atmosphere or emanation.
2. A harmful or corrupting atmosphere or influence; also, an atmosphere that obscures; a fog.

 

objurgate OB-juhr-gayt, transitive verb:

To express strong disapproval of; to criticize severely.

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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.