Main News

 

FoHFs risk increase in correlated returns
Source: Global Pensions
Pension funds could inadvertently increase correlated returns by investing in funds of hedge funds (FoHFs), according to research by Fitch Ratings. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Basel Committee to tighten up rules after crisis
The Bank of International Settlements (BIS) committee that produced the Basel II capital adequacy rules says it will adapt its rules to prevent another credit crisis. The Basel Committee said it would raise capital requirements for the structured credit products, such as collateralised debt obligations of asset-backed securities, at the root of the credit crisis. Liquidity facilities extended to off-balance-sheet vehicles would also be treated more harshly under the new rules, due to be published later this year.

 

Banks slash hedge fund lending
Banks have dramatically cut back the amount of money they are willing to lend to hedge funds, forcing some funds to cut leverage by up to half.  (Financial Times)
http://mail2.efnmail.co.uk/r/358444/MTk4MTI1OjE3MTAz/

 

By TERI BUHL

Yet another one-time high-flying hedge fund appears ready to crash to earth. Seven-year-old SageCrest II, which promised investors lofty returns by making art-, real estate- and structured settlement-based loans, is set to sign a last-minute $150...full story

 

China hedge fund loses 57% in three months
eFinancial News Fri, 25 Apr 2008 4:42 AM PDT
One of last year's highest-performing hedge funds, the 788 China Fund, has recorded a loss of 57% for the first three months of this year after what its manager described as "the most horrible quarter I have experienced in 24 years of managing money".

 

Basel Committee Response to Current Financial Crisis

The Basel Committee today is announcing a series of steps to help make the banking system more resilient to financial shocks. These include: Enhancing various aspects of the Basel II Framework, including the capital treatment of complex structured credit products, liquidity facilities to support asset-backed commercial paper (ABCP) conduits, and credit exposures held in the trading book. At the same time, the Committee notes the importance of prompt implementation of the Basel II framework, as this will help address a number of the shortcomings identified by the financial market crisis. Strengthening global sound practice standards for liquidity risk management and supervision, which the Committee will issue for public consultation in the coming months. Initiating efforts to strengthen banks' risk management practices and supervision related to stress testing, off-balance sheet management, and valuation practices, among others. Enhancing market discipline through better disclosure and valuation practices. Link read entire story on source's website

 

Value-at-Risk: Is Lacking in Sub-additivity Just an Annoying Technicality? Authors Tibiletti, Luisa; Date June 2008 Category Properties of VaR

 

Digging Deep for ValueAN INTERVIEW WITH ROBERT MARCIN AND STEVE EPSTEIN: The duo behind Defiance Asset Management practice "too-good-to-be-true investing."
http://online.barrons.com/article/SB120916336912346003.html?mod=djemWR

 

VIX Marks the Spot -- For Treasuries The stock market's fear gauge is a leading indicator for Treasuries.
http://online.barrons.com/article/SB120890345500436157.html?mod=djemBF

 

Hedge Investors Sit on WalletsInvestors lose their taste for all but the largest hedge funds in early 2008. Morgan Asset Management pays the price for stepping over the line.
http://online.barrons.com/article/SB120918304818347259.html?mod=djemWR

 

Jeremy Warner's Outlook: The herd, the hedge fund and the billion ...
Independent - London,England,UK
Hedge funds have been some of the primary beneficiaries of these self-reinforcing investment trends. The term "hedge fund" covers a multitude of sins but ...

 

Sandy Weill on Jamie Dimon, Bear Stearns and Citi's size

Mr.  Weill, the one-time head of Citigroup, praised J. P.  Morgan Chase CEO Jamie Dimon's performance in the face of the credit crunch. 

 

Foreclosures come to Greater Hedgistan
The Huffington Post - Friday April 25, 10:09 BST

 

CIBC sees gas at $7 a gallon in four years
Crude oil prices could rocket to above $200 a barrel in four years, pushing U.S. gasoline prices to as high as $7 a gallon, CIBC World Markets analysts said. Crude supplies are actually lower than some official estimates indicate, while demand is unlikely to fall anytime soon, said analyst Jeff Rubin of CIBC, an investment bank. But Standard & Poor's predicted crude prices could slide to about $90 a barrel by the end of this year as the U.S. economy struggles with recession. MarketWatch (24 Apr.)

 

Wealth mismanagement
Economist - UK
The bank's collateralised-debt obligation (CDO) desk in New York responded with aplomb, structuring ever more CDOs of mortgage-backed securities for sale ...
See all stories on this topic

 

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Yield Curve Corner

 

Market Features Coming Week: Make or Break
TheStreet.com - USA
The Federal Reserve's policy announcement Wednesday will take center stage again, as Ben Bernanke & Co. continue to walk their economic tightrope. ...

 

Greenspan ExposedBarron's gets a rare glimpse at the Maestro's long-lost NYU doctoral thesis, and his long-ago view of, yes, a housing debacle.
http://online.barrons.com/article/SB120917419049046805.html?mod=djemWR

 

Rethinking Fed Policy
Forbes - NY,USA
Federal Reserve Chairman Ben Bernanke will not find the answers to these problems in economics textbooks. In addition to adjusting interest rates and bank ...

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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:

 

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Iranian Situation and Other Man Made Disasters

 

U.S., Iran: U.S.-Contracted Ship Fired Warning Shots At Iranian Boats
April 25, 2008 1538 GMT
A ship contracted by the U.S. Military Sealift Command fired at Iranian fast boats April 25 after...
http://www.stratfor.com/sitrep/u_s_iran_u_s_contracted_ship_fired_warning_shots_iranian_boats

 

Iran must fight Barbie doll invasion: prosecutor
AFP via Yahoo! News Sun, 27 Apr 2008 10:23 AM PDT
Iran's toy market is being inundated by models of Barbie, Batman, Spiderman and Harry Potter and the young must be protected from their harmful cultural effects, the prosecutor general was quoted as saying on Sunday.

 

Conservatives win Iran polls in mixed blessing for president
AFP via Yahoo! News Sun, 27 Apr 2008 3:00 AM PDT
Iran's conservatives were Sunday celebrating victory in legislative elections, but the new parliament may trouble President Mahmoud Ahmadinejad amid increasing domestic controversy over his policies.

 

Iran’s conservatives win run-off
Financial Times Sun, 27 Apr 2008 9:45 AM PDT
The Conservatives have consolidated their power in Iran’s parliament during a second round of voting. However, President Mahmoud Ahmadi-Nejad could still face a rough ride over his economic management in the year ahead.

 

5 ABDUCTED IN IRAQ MAY BE IN IRAN
New York Post Sun, 27 Apr 2008 2:23 AM PDT
A group of five British hostages kidnapped in Iraq last year are being held in Iran by the Revolutionary Guard, according to a published report. The hostages, who were snatched from the Iraqi Finance Ministry in Baghdad in May are believed to be in...

 

Conservatives Prevail in Iran Election
Time Magazine Sat, 26 Apr 2008 12:11 PM PDT
Conservatives consolidated their control of Iran's legislature in runoff elections

 

Iran 'stepping up arms to Iraq'
BBC News Fri, 25 Apr 2008 7:39 AM PDT
The most senior US military official says Iran is increasing the flow of weapons and training to Iraqi insurgents.

 

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Opalesque’s Corner

 

- Fund Launches: FRM plans London listing of flagship `Diversified` fund of hedge fund strategy, Holding Capital backs RKC Capital, prepares India, Brazil funds, Blue Sky Asset Management believes banking turmoil at `beginning of end`, launches accelerated recovery plan
- Assets:  BlackRock Absolute Return Strategies raises $275m and begins trading on London Stock Exchange, BlackRock misses $500m target for fund of hedge funds feeder vehicle, Polar Capital net redemptions hit $230m, AuM fall 13% in Q1, Thames River seeks 200 mln pounds from Hedge+ C share issue, Asset management group Schroders has suffered its first credit crisis writedowns, ADM Capital closes distressed hedge fund early
- Opalesque Exclusive:  The macro mind
- Trends: Private equity real estate set to break $100bln barrier for first time in 2008, no crisis in fundraising as $25bln raised in Q1 2008
- Views: AXA IM favours liquid hedge fund strategies
- Profile: Salida Capital ready to make some noise
- Rating Agencies: Allenbridge HedgeInfo rates Signet FoHFs GFI and GFI2 AA
- Regulatory: SEC charges Wall Street trader with fraud for spreading false rumor, Comment:  Wall Street cops: Giant hook, little fish, Gabelli pays $16m to settle SEC market timing inquiry, Japan FSA publishes 14 principles, aims to combine rules- and principles-based supervisory approaches
- Legal:  NFA takes an emergency enforcement action against Last Atlantis Capital Management LLC, Clear Channel court clash: Crowds, emails, and a house,  Update: Court approves Citigroup $1.66bln Enron settlement
- Credit Crunch Update: Banks cut hedge fund lending, Second Curve Capital CEO sees not-so-horrific subprime losses, MBIA, Ambac might need $3.4bln each in additional capital, analyst says, Paulson cites progress in calming markets
- Joint Forum releases paper on risk concentrations identification and management
- People: JPMorgan names senior Bear executivess to top posts
- Service Providers: Opalesque Exclusive: GlobeOp assets reach $100bln, to announce dividend, GlobeOp warns hedge funds face short-term woes as assets edge higher
- Institutions: $25m global asset allocation manager search
- Sovereign Wealth Funds: U.S. Fed welcomes sovereign wealth fund capital raised by US banks
- Commodities: Missouri official blasts hedge funds for `price manipulation`, Oil, gold, rice all fall on stronger dollar, Workers strike at biggest underground copper mine
- MF Global seeks $200m from private equity
- Asia: Taiwan to benefit from political change, says Barings, Japanese government bond futures suffer biggest loss in 5 years
- Activist News: TCI says it will contest J-Power rejection, TCI accuses Japan of manipulating opinion to justify rejection, Media General shareholders elect rival board slate, Valeo CEO says activist fund Pardus `lacks understanding` of business, CNET Networks reveals partnership with Yahoo, Activist Richard Breeden joins STERIS (STE) Board, Hedge funds take aim at sitting duck companies with sagging share prices
- News Briefs: Overstock.com CEO`s feud with CNBC continues, claims short selling hedge funds have network ear, Merrill and TPG discuss closer ties, Critics say hedge fund owners neglect public responsibilities of rail ownership in Oregon, Martin Currie sustains growth, Fund manager spends $800k on basement storage room in NYC
- ...And finally: Breaking News - Opalesque Exclusive: Hatfield Liptak Advisors start `Hedge Fund Surf Club`, prime brokers can apply for cap intro conference sponsorships at famous surfing breaks
- 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….

 

posit POZ-it, transitive verb:

1. To assume as real or conceded.
2. To propose as an explanation; to suggest.
3. To dispose or set firmly or fixedly.

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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.