Main News

 

HEDGE CRASHES BOND YIELDS
New York Post Sun, 20 Apr 2008 3:02 AM PDT
Scores of hedge funds, already suffering through one of the poorest performance stretches in recent memory, got blasted last Thursday after one giant fund sold investments on the belief that the Federal Reserve was done cutting rates. The funds...

 

GSEs could endanger US credit rating
Exposure to government-sponsored enterprises (GSE) such as Fannie Mae and Freddie Mac could threaten the US government's AAA credit rating, New York-based rating agency Standard & Poor's has warned.

 

Outsize losses reported by Citigroup and Merrill Lynch could have been a lot worse except for a quirk in the way companies account for different types of securities.
http://online.wsj.com/article/SB120873768772029985.html?mod=djemheard

 

Commentary: Numbers don't add up for faddish 130/30 funds
MarketWatch - USA
They have been described in any number of ways, including limited-shorting funds, enhanced-alpha funds, "hedge-fund lite" and more, but the 130/30 moniker ...

 

Aima and MFA welcome President's Working Group reports on hedge fund best practice
The Alternative Investment Management Association and the Managed Funds Association have welcomed the best practices reports released by the two committees appointed by the US President's Working Group on Financial Markets.

 

Soros urges regulation for hedge funds
Source: AFP
Hedge fund pioneer George Soros called on Thursday for regulation of such highly speculative investment vehicles and the banks that lend to them. More... <http://www.hedgefund-index.com/newstoday.asp>

 

 

Delinquent Auto Loans Are on the Rise as More Borrowers Drown in Debt (By Ylan Q. Mui, The Washington Post)

By DAVID NELSON

So, do you think the markets have hit a bottom While the Dow Jones industrial average was up 4.3 percent last week, led by financial sector shares like Merrill Lynch, JPMorgan Chase, Goldman Sachs and Citigroup, Wall Street was abuzz with chatter...full story

Western Asset falls victim to the credit crisis
The credit crisis has led to severe underperformance at funds managed by Western Asset, one of the world's largest bond managers.
http://mail2.efnmail.co.uk/r/356928/MTk4MTI1OjE3MDQ0/

 

CDS clearing system to launch 'in six months'
A new clearing system for credit derivatives, backed by a group of brokers and trading platforms, will launch within six months as the market for these instruments remains gummed up in the wake of Bear Stearns' collapse.
http://mail2.efnmail.co.uk/r/356792/MTk4MTI1OjE3MDQx/

 

Did Size Doom Islamic HFs?
Islamic hedge funds have had a poor success rate, and it may be partly because of their size, and the company they keep.

 

Investors Desert Quant Managers
Quantitative managers are paying for subpar returns with a loss of investors.

 

Survey: FOHFs To Suffer In 2008
Fund managers have become increasingly gloomy about performance of funds of hedge funds, with only 2% expecting above-average returns this year, according to a Reuters survey.

 

Och-Ziff says lost Money in Marubeni Scam
Reuters - Friday April 18, 09:46 BST

 

The Other Orange County
BusinessWeek - USA
Now it's the subprime mortgage fiasco. "The cultural here is very real estate- and finance-focused," says Michael Capaldi, a principal at Newport ...

 

Class of 2005 struggles to perform
And then there was one: of the four European hedge fund managers that launched in 2005 with $1bn-plus (?630m) initial funds, only Gandhara Capital, a long/short equity manager, has lived up to the promise.
http://mail2.efnmail.co.uk/r/356941/MTk4MTI1OjE3MDQ0/

 

FBI warns of hedge fund fraud
National Post - Toronto,Ontario,Canada
... has warned that its investigations into corporate fraud may uncover more illegal actions from institutions such as investment banks and hedge funds. ...

 

Food Crisis 2008: The Tipping Point
April 18, 2008 1423 GMT
The global shortage of grains has reached a geopolitical tipping point, and governments around the world are taking action. Marla Dial reports.
http://www.stratfor.com/podcast/food_crisis_2008_tipping_point

 

Refinancing risk presents a challenge
If the success of the benchmark bond sale this month from Russia's state-owned energy company Gazprom is anything to go by, appetite for Russian corporate credit appears to be in good health.
http://mail2.efnmail.co.uk/r/356949/MTk4MTI1OjE3MDQ0/

 

The International Swaps and Derivatives Association, Inc. (ISDA), yesterday announced, that jointly with the European Central Bank (ECB)'s European Financial Markets Lawyers Group (EFMLG), it has submitted a letter to the European Commission, in which it proposes harmonization of netting laws across the European Union.

Full Story...

 

Israel seeks to reinvent itself as finance hub
Financial Times Sun, 20 Apr 2008 11:30 AM PDT
Sitting in his office overlooking the Mediterranean, Tal Keinan, who three years ago founded Tel Aviv-based hedge fund KCPS, paints a bright future for Israel’s finance industry.

 

FRIDAY - "Government Bailouts: Another Fine Use Of Your Tax Dollars"
A great video from AngryRenter.com showing the unfairness of using
taxes from people who made good financial choices to save people who
made bad ones.
http://www.jasonkelly.com/#7688988173224534837

 

Manage a Hedge Fund? Make $1.4M an Hour
ABC News Fri, 18 Apr 2008 2:29 PM PDT
Wall Streeter takes home $3B last year, enough to cover budgets of six states.

 

UBS teams with Enso Capital Management to create fund
Source: CNNMoney.com
UBS AG is teaming with Enso Capital Management LLC to establish an investment fund pursuing unusual stock investment strategies, the companies said Thursday. More... <http://www.hedgefund-index.com/newstoday.asp>

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Yield Curve Corner

 

Ben Bernanke at Harvard: An Address in Drag?
Wall Street Journal Blogs - New York,NY,USA
“Alan Greenspan left some embarrassing items behind in the chairman’s office. We knew he was into leather, but now we’ll finally hear the specifics. ...

 

Clinton and Obama are not Canada's friends
Calgary Herald - AB, Canada
Fast forward to 2008: US Federal Reserve chairman Ben Bernanke has already avoided the first policy mistake -- restricting the money supply. ...

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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/DSTsaudiarabia109_MT.jpg

 

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Iranian Situation and Other Man Made Disasters

 

Bush, British PM push tough approach on Iran
AP via Yahoo! News Thu, 17 Apr 2008 4:24 PM PDT
President Bush and British Prime Minister Gordon Brown tried to dispel doubts about their relationship Thursday, showcasing personal bonhomie as well as common ground on vexing issues such as the Iraq war, a showdown with Iran, global trade and the crises in Sudan and Zimbabwe.

 

Iran minister in parting shot at Ahmadinejad
AFP via Yahoo! News Sun, 20 Apr 2008 4:49 AM PDT
Iran's outgoing economy minister has revealed that he opposed many of President Mahmoud Ahmadinejad's economic policies despite serving almost three years in his government, a magazine reported on Sunday.

 

Iran-Turkey security deal ready for signature
Payvand Iran News Sun, 20 Apr 2008 11:39 AM PDT
Iran's Deputy Interior Minister for Security Affairs Abbas Mohtaj on Sunday said that the security agreement between Iran and Turkey is ready to be signed by the two sides' interior ministers. –MNA

 

Iran slams US for bombings in Baghdad militia bastion
AFP via Yahoo! News Sat, 19 Apr 2008 8:08 AM PDT
Iran lashed out at the US military on Saturday for carrying out air strikes in Baghdad's Sadr City, the bastion of Shiite militias Washington says are backed by Tehran-based groups.

 

A Diplomat's View on Engaging Iran
NPR Sat, 19 Apr 2008 8:02 AM PDT
Former Ambassador Thomas Pickering has had unofficial meetings with Iranian academics and policy advisers for the past several years on everything from the war in Iraq to Iran's nuclear program. Pickering discusses his diplomatic efforts.

 

Iran: German sanctions don't hurt
AP via Yahoo! Finance Fri, 18 Apr 2008 9:19 AM PDT
An Iranian deputy foreign minister said Friday that Germany's reduction in trade with Iran as part of Western sanctions is not hurting his country because competitors from Asia are stepping in to fill the gaps.

Iran's football team likely to play L.A.Galaxy
Payvand Iran News Sun, 20 Apr 2008 11:40 AM PDT
Iran's Football Federation (IFF) is waiting for the official invitation from the U.S. Soccer Federation to hold a friendly game against Los Angeles Galaxy. -MNA

 

Lebanon: A Flurry of Arab Diplomacy
April 17, 2008 2133 GMT
Middle Eastern leaders are trying to achieve a breakthrough that will solve Lebanon's long-standing political crisis, in hopes of staving off a rumored Israeli invasion.
http://www.stratfor.com/analysis/lebanon_flurry_arab_diplomacy

 

A Mystery in the Middle East
April 8, 2008 1807 GMT
http://www.stratfor.com/weekly/rumors_arab_israeli_war_and_sum_routine_events

 

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Opalesque’s Corner

 

- JV: Hedge fund Enso Capital Management and UBS form JV, available on UBS wealth management platform
- Fund launches: Update: Man Group alum launches Canadian-focused L/S equity fund, Red Kite plans two resources funds in Hong Kong, Sydney
- Assets: Opalesque Exclusive: Syz`s AUM in alternatives up 43.5% in 2007, slower growth now but no worries, Swiss private bank offers investors haven from credit crisis, AUM up 23% to $20bln in 2007, CHF1bln invested in HFs but not in FoHFs
- Indices: Greenwich Global hedge fund indices: Hedge funds gave back February gains in March, main index returned -19.4%, -2.92% YTD, Edhec: All hedge fund strategies posted negative returns except for Short Selling (1.92%)
- Views: Soros urges regulation for hedge funds, Ernst & Young`s executives say markets may continue to fall, instruments to become more complex and require stronger regulation
- GLG Update: Comment: It`s a small world, Key man`s exit opens doors to worries
- Earnings: The five hedge fund managers who made over $1bln in 2007 - Falcone moved to 4th place
- Client Relations: Turn crisis communications into an opportunity
- Subprime Investing: Thames River hedge fund manager goes long subprime, TCW distressed mortgage fund ramps up purchases
- Credit Crunch Update: Merrill Lynch posts steep Q1 loss on write-downs, to cut another 3,000 jobs, Thain gloomy after Merrill`s loss, Credit swaps worldwide top $62tln in rush to hedge losses, Survey: Credit portfolio management during credit crisis finds strong performance but different approaches towards managing risk, FT Comment: Super-senior losses just a misplaced bet on carry trade
- Rating Agencies: Asset Management industry outlook negative on broad market weakness - Moody`s, Critics highlight agencies` predictions gone wrong
- Legal: FBI`s director warns that investigations may uncover more hedge fund frauds, UK law firm offers `to spend time in-house with hedge fund clients to ensure they do not commit market abuse`,Second KL Group principal pleads guilty, ASIC restrains activities of Strategic Alternative Investments Pty Ltd and associates involved
- Regulators: Fed`s Kohn blames institutional investors for structured debt crisis, SEC seeks funding from Congress to oversee rating firms and investment banks, UK Hedge Fund Standards Board welcomes PWG proposals
- Commodities: Clive Capital hedge fund gains 17.6% in Q1 on commodities, CF Eclectica Agriculture Fund up 22% since inception in June, manager says wheat price `to go up two or three times more`, Haar Capital unveils third institutional futures fund, Boone Pickens reverses position to bet on higher oil prices, Rice on the market: why have prices skyrocketed?, Where are the short commodity funds?, Poll: Surging commodities biggest economic threat
- People: Opalesque Exclusive: $40m sugar fund adds trader, BATS announces CEO, COO, Societe Generale dissociates functions of chairman and CEO
- Institutions: Latest State Street`s Vision report provides insights and perspectives on trends and developments in retirement provision around the world
- Outsourcing Deal: Silver Creek Capital Management selects SEI to provide fund operations outsourcing
- US hedge fund lender SageCrest seeks emergency loan from Fortress
- ETFs: UBS ETFs` benchmark switch and name changes
- Europe: Bill Mott says hedge funds may suffer from BoE`s possible plan to exchange MBS for government bonds, Sweden to relax alternatives regulation, Iceland fends off hedge fund attacks, Fears grow of Baltic states` addiction to external capital, `Mr. Euro` is calling for Washington to take steps to halt the slide of the dollar
- Asia: UBS opens funds services office in Hong Kong
- Activist News: TCI demands J-Power increase dividend payouts, Foreign investors and hedge funds are making inroads into Hong Kong and stand up to powerhouses, The jury is still out on the costs and benefits of investor activism
- News Briefs: Two-year treasurys tumble, investors sell short to protect yields, Bank of New York Mellon net rises 72% after merger, ETrade posts $91m loss, UK` second largest bank RBS `prepares fundraising plan`
- And Finally. Darling, what`s this knife in your back?
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

In the Eye of the Housing HurricaneA Florida real-estate broker sees a bigger storm ahead.
http://online.barrons.com/article/SB120855860182527617.html?mod=djemWR

 

 

Cuomo Dusts Off the Spitzer Playbook New York's top cop probes Wall Street's bond sales. Read More

 

WALL STREET DAILY  By RANDALL W. FORSYTH
No MarketFor Young Men Testosterone fuels irrational exuberance, study says. Should the Fed target traders' hormones?
http://online.barrons.com/article/SB120829537156417297.html?mod=djemBF

 

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Funnies, Facts, Quotes, etc….

 

lambaste lam-BAYST, transitive verb:

1. To give a thrashing to; to beat severely.
2. To scold sharply; to attack verbally; to berate.

 

portent POR-tent, noun:

1. A sign of a coming event or calamity; an omen.
2. Prophetic or menacing significance.
3. Something amazing; a marvel.

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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.