Main News

 

 

Fannie Flames Fears
Fannie Mae, the largest buyer of mortgages in the nation, reported a loss of $2.2 billion for the first quarter, a wider loss than expected and its third consecutive quarterly loss. Read More

 

Loan Officers Don't Believe the Worst Is Past Credit is the tightest since the 1990s crunch, Fed survey says.
http://online.barrons.com/article/SB120998885666667335.html?mod=djemBF

 

Demand/Supply Fundamentals Support Oil Prices
By: Michael S. Fischer, Senior Financial Correspondent
Posted: 05/06/2008 3:54:27 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1236.html

 

 

A Deutsche Bank survey indicates that hedge-fund investors are sitting on large amounts of cash waiting for the right time to buy distressed assets. (Deutsche Bank survey)
http://online.wsj.com/article/SB121004287774669889.html?mod=djemheard

 

 

Turkmenistan: Setting the Turkmenbashi Aside. May 6, 2008 | 2009 GMT. Turkmen soldier next to Arch of Neutrality. STR/AFP/Getty Images ...
www.stratfor.com/analysis/turkmenistan_setting_turkmenbashi_aside - 4 hours

 

Russia: A Groundbreaking Investment Law. May 6, 2008 | 1939 GMT. Russian President Vladimir Putin gesturing at mic. NATALIA KOLESNIKOVA/AFP/Getty Images ...
www.stratfor.com/analysis/russia_groundbreaking_investment_law - 5 hours ago

 

 Merrill Says Level 3 Assets Jump 70?n First Quarter (Update3)

 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=a.lHEg311ldw

 

ASEAN, Others To Launch Monetary Fund
South Korea, China, Japan and the Association of Southeast Asian Nations have agreed to establish an Asia Monetary Fund worth $80 billion to help member states cope with any liquidity crisis.

 

Investment Executive Tue, 06 May 2008 11:58 AM PDT
Hedge fund investors are pessimistic about the year ahead, and they are expecting the strongest returns from emerging markets, according to a survey by Deutsche Bank

 

Hedge Funds: RAB Capital warns of significant fall in profit
Market Watch Tue, 06 May 2008 4:32 AM PDT
U.K.-listed hedge fund manager RAB Capital warned Tuesday that its first-half profit will be significantly below the previous year due to further liquidity concerns, nervous investors and highly volatile markets

 

Investors Sitting on $75 Billion
By: Bill McIntosh, Senior Financial Correspondent
Posted: 05/06/2008 3:23:36 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail14963.html

 

Blackrock Gobbles $15 Billion of Impaired UBS Assets
> By: Martin de Sa'Pinto, Senior Financial Correspondent
> Posted: 05/06/2008 10:52:01 AM ET
> http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail14962.html

 

Money market funds divided over asset-backed paper market
Managers of money market funds are deeply divided as to whether the coast is clear to venture back into asset-backed commercial paper, a move that may be necessary to help end the global credit squeeze and unglue frozen mortgage markets.  (Financial Times)
http://mail2.efnmail.co.uk/r/360997/MTk4MTI1OjE3MjAx/

 

The Bank for International Settlements (BIS) has established a Consultative Council for the Americas (CCA), comprising the Governors of the BIS member central banks in the Americas region. The purpose of the CCA is to provide a vehicle for communication between the members of the BIS in the Americas and the Bank’s Board and Management on matters of interest and concern to the central bank community in the region.

Full Story...

 

6 Thoughts on Monetary Policy by David Merkel

 

U.S. Recovery Could Push Oil Much Higher by Roger Nusbaum

 

Vikram Pandit's Amazing Disappearing Hedge Fund by Felix Salmon

 

Housing's 5 Hardest-Hit Cities
AnnaMaria Andriotis
Home values in these cities are down by double-digit percentages with no end in sight.
  http://www.smartmoney.com/t.cfm?pId=7&mID=519&mDt=05/06/2008&ui=1157312&ctu=%2Fdealoftheday%2Findex%2Ecfm%3Fstory%3D20080506%2Dcities%2Dwith%2Ddecreasing%2Dhome%2Dvalues

 

Conditions Ripe For Hedge Fund Seed Investors
By: Reuters
Posted: 05/06/2008 10:05:54 AM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3458.html

 

By PAUL THARP Still red-faced from his flops at Sears and Kmart, billionaire investor Eddie Lampert got hit with more shareholder grumbling at yesterday's annual meeting, but couldn't offer much hope. A line of investors, including his sometime nemesis...full story

 

Dark pools may hype trading volumes
The off-exchange stock trading arenas may promise more than they deliver, a Morgan Stanley trading executive warned. Some analysts believe 10% to 20% of U.S. stocks may be traded in the anonymity of so-called dark pools. Flawed accounting processes may inflate the trading volume at more than 40 venues where large orders can be matched while concealing price and volume details, Morgan Stanley's Andrew Silverman said. Reuters (05 May.)

 

Financial Futures
(Martha M. Hamilton, washingtonpost.com)

 

Tue, 06 May 2008, 06:00

HedgeWeek
Smith Portfolio Management, founded in 1999, and Crescat Partners, established in 1985, have merged to create Crescat Capital, an alternative investment manager based in Denver, Colorado with USD70m in assets under management.

 

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Yield Curve Corner

 

Dollar Falls Versus Euro; Bernanke Says Defaults to Slow Growth
Bloomberg - USA
By Anchalee Worrachate and Stanley White May 6 (Bloomberg) -- The dollar fell against the euro after Federal Reserve Chairman Ben S. Bernanke said mortgage ...

 

Bernanke: High foreclosure rates hurt broad economy
May 06, 2008 06:49 AM ET
NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke on
Monday said conditions in mortgage markets remain strained,
posing a threat to the economy, and urged steps be taken to
prevent home foreclosure where possible.
http://links.reuters.com/r/X7E3V/EFPC9/7L673/CDU8D/1JC4P/YT/t

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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/VSHchaiten127_G10.jpg

 

The death toll from the cyclone that battered Myanmar last weekend rose above 22,000 Tuesday as the international community prepared to rush in aid, state radio reported. A news broadcast on government-run radio said that 22,464 people have now been confirmed dead from Cyclone Nargis. State radio said more than 41,000 people were still missing.
For more information, see: http://online.wsj.com/article/SB121005930045270227.html?mod=djemalertNEWS

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Iranian Situation and Other Man Made Disasters

 

Iran hardliners condemn Khatami
BBC News Tue, 06 May 2008 10:09 AM PDT
Members of Iran's parliament complain about remarks made by former President Khatami on Ayatollah Khomeini.

 

Mehdi Army hates U.S. more than Iran
UPI Tue, 06 May 2008 10:14 AM PDT
BAGHDAD, May 6 (UPI) -- Officials with the Mehdi Army of cleric Moqtada Sadr say they hate Iran for the 1980s fight against Iraq, but look to it for support against the U.S. military.

 

French Min Says New Incentive Package For Iran `Very Generous'
Nasdaq Tue, 06 May 2008 11:20 AM PDT
PARIS (AP)--French Foreign Minister Bernard Kouchner said Tuesday that an incentive package offered by leading powers to draw Iran into dialogue is "very generous" and will be delivered to Tehran within days.

 

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Opalesque’s Corner

 

- Commodities: Opalesque Exclusive:  How $2.2bln Aisling Analytics views historic commodities pricing and the debate on growing investor inflows, Nigeria attacks help push oil to $120 a barrel, hedge funds short more, Shine unlikely to come off precious metal, March mixed for CTAs
- Fund launches: Former Dillon Read CIO launches hedge fund, Emergent AM to launch PE and hedge funds in June/July, Sempra Energy Trading co-founder plans to raise $750m for natural gas hedge fund, Shanghai's Bohong Fund Management to launch China arbitrage fund
- Niche Investing: Codium Fund, a diamonds hedge fund, to be launched in June, Veteran hedge fund manager Jack Wolf rides fund on back of race horse, Comment: Interest rate bottom draws institutional investors to tax liens
- Fund Closures: Dwight Sipprelle shuts down Arx hedge fund, plans to retire
- Performance: John Paulson`s funds slightly slipped in April, Convertible arbitrage funds suffer sixth month of losses, RAB`s AUM dropped 12% to $6.34bln YTD, shares down, Special Situations Fund -3% YTD, What to do if a star firm stumbles? Bruce Sherman`s Private Capital Management has returned 4.52% p.a. over last 3 years
- BlackRock in talks to manage mortgage assets for UBS
- M&A: Colorado alternatives firms merge to form Crescat Capital
- Deutsche Bank survey: Hedge-fund managers stockpile cash - and so do hedge fund investors
- First study to examine the secondary market for stakes in hedge funds
- Investors: EPFR Global data shows investors turn to riskier assets
- Ratings: Cazenove Capital Management gets AAA rating from S&P on all European OEIC funds
- Credit Crunch Update: Countrywide stock stumbles as BoA negotiates for much lower price, hedge funds implicated, UBS to shed a further 2,600 bankers, Citigroup`s Pandit faces test as pressure on bank grows, Survey shows crisis of confidence among bankers and regulators, US bank lending tightens further
- People: TCI hires Jim Wilk from Carlyle Blue Wave, PIPE manager NIR Group appoints Paul Schwartz director of client services
- Regulators: SEC commissioner Paul Atkins to step down, FTC oversight might be extended to oil and energy markets, HK` Securities and Futures Commission welcomes mainland fund companies to Hong Kong
- Legal: SEC obtains asset freeze to stop $30m hedge fund fraud by investment adviser in San Diego, Judge tosses Charming Shoppes suit against two activist hedge funds, Update: Falcon investors sue Citi in Florida, NYC law firm now working on out-of-court arbitration filings
- Europe: Opalesque Exclusive: Swiss Fund Data - High inflows into money market funds, capital losses in equity funds, alternatives continue to attract assets
- Asia: Opalesque Exclusive: Opalesque publishes Hong Kong Hedge Fund Manager Roundtable - Leading hedge funds report huge invest, India considers ban on trading in food futures, Asian structured products in volatile market - interview
- Brics offer investors a varied harvest, group predicted to overtake G7 by 2032
- Risk Management: Celent ranks Algorithmics as leader for Basel II credit risk management solutions
- Events: Opalesque Exclusive: Webinar on investing in insurance event linked securities, May 13, America`s next top pricing model - Valuations in distress, New York, May 12, 100 Women in Hedge Funds presents `Geopolitics: Risks and opportunities`, Hong Kong, May 13
- Book: How the world`s high-net-worth grow, sustain and manage their fortunes
- Activist News: Yahoo may see hedge fund heat after Microsoft bid, TCI asks CSX holders to back its nominees
- News Briefs: Buffett loses $1.6bln on derivatives, NYSE deal may force Amex to cut 75% of staff
- And Finally. Illinois man orders custom beer-can coffin, delighted he `actually fits in`
- 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….

 

amalgam uh-MAL-guhm, noun:

1. An alloy of mercury with another metal or metals; used especially (with silver) as a dental filling.
2. A mixture or compound of different things.

 

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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.