Main News

 

Company Bond Risk Jumps
The cost of protecting corporate debt from default rose the most in three weeks after Fannie Mae announced a bigger-than-expected loss and U.S. bankruptcy filings soared 49%. More

 

Chinatrust Writes Off SIV Portfolio
Chinatrust Financial Holding Co. has written off its entire $45 million portfolio of structured investment vehicles. More

 

CDS Clearing Aims To Prevent Crisis
The push to launch a credit derivatives clearing house is gaining pace, with target dates set for the third quarter. More

 

Can Hedge Fund Investors Hedge Against Crises?
By: Chidem Kurdas, New York Bureau Chief
Posted: 05/07/2008 1:44:11 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=dail&story=dail14968.html

 

Emerging Markets Fund Nosedive Hits GLG
By: Bill McIntosh, Senior Financial Correspondent
Posted: 05/07/2008 3:25:46 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail14969.html

 

WSJ.com - Hedge-Fund Portfolios Stockpile Cash*

 

Harcourt 'Very Bullish' on Global Macro
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 05/07/2008 1:37:02 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail14967.html

 

THE PROMISE OF PREDICTION MARKETS: A ROUNDTABLE
Companies employ high-priced specialists to predict the sales of
forthcoming products and how long they might take to develop. Yet
prediction markets, which solicit and aggregate the opinions of people
throughout a business, generate forecasts that are usually at least as
accurate--and sometimes much more so. This radical new business tool
challenges fundamental assumptions about expertise, power, and the way
organizations work.
http://e.mckinseyquarterly.com/W0RT01E8BE66C32CE4E192A3E13300  

 

Deutsche Bank today announced the results of the sixth annual Alternative Investment Survey, which was conducted during March 2008 by the Bank’s Hedge Fund Capital Group. Over 1000 respondents from 500 institutions responded to this year’s survey, including banks, corporations, insurance companies, consultants, family offices, high net worth individuals, wealth management companies, funds of funds, pensions, endowments and foundations.

Please click here for the 2008 Deutsche Bank Alternative Investment Survey.

 

From the Pages of The Pomerantz Monitor: The Market for Auction Rate Securities Freezes Up

Posted: 06 May 2008 09:23 AM CDT

 

The paper explores the evolution of auction-rate securities in depth, from their creation in the mid-1980s through continued market developments in the 1990s and 2000s, up through the present crisis, when the market “virtually collapsed” in February 2008, according to the Wall Street Journal.

 

What are the Key Elements in an Effective Risk Management Structure?

Ernst & Young

Hank Prybylski, Global Practice Leader,
Financial Services Risk Management

 

Paulson Funds' Dip Tied To Bank Swaps
Source: Alternative Investment News
John Paulson, the hedge fund titan and head of Paulson & Co., saw his funds dip slightly in April after they bet that Wall Street firms such as Bear Stearns would collapse and default on their debt.

 

A Game of Chicken
Soaring grain prices and trade bottlenecks are actually driving some food costs down. Read More

 

The Foreclosure Crisis
New York Times - United States
It is not surprising that the same lenders and brokers who brought us the subprime mortgage disaster are now lobbying against the relatively mild proposals ...

 

Conning Tapped To Manage Carbon Fund
Conning Asset Management, a unit of Swiss Re, has been tapped to manage a new €125 million fund that will buy and trade carbon credits.Read more

 

Singapore's DBS says sees no large CDO provisions
Reuters - USA
SINGAPORE, May 7 (Reuters) - DBS Group Holdings (DBSM.SI: Quote, Profile, Research), Southeast Asia's biggest bank by assets, said on Wednesday it did not ...

 

Finance and Investment
Carlyle Group's David Rubenstein: 'The Greatest Period for Private Equity Is Probably Ahead of Us'
David Rubenstein is co-founder and managing director of The Carlyle Group, the Washington, D.C.-based private equity firm with more than $70 billion in assets under management. In March, members of the Wharton Private Equity Club (WPEC) interviewed Rubenstein about the ongoing credit crisis, the industry outlook, the rise of sovereign wealth funds and why private equity is "one of the greatest exports of the United States."
http://knowledge.wharton.upenn.edu/article/1957.cfm

 

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Yield Curve Corner

 

Bernanke Wants Fed to Pay Interest on Bank Reserves (Update1)
Bloomberg - USA
By Craig Torres May 7 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke, seeking ways to stabilize money markets, will ask Congress for authority to ...

 

Bernanke: Foreclosure woes require action
CNNMoney.com - USA
Bernanke's comments come as concern about the housing crisis and debate about how to help homeowners in trouble is growing. Foreclosure filings of all kinds ...

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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/DSTmiddleeast128_MO.jpg

 

A U.S. diplomat in Myanmar said 100,000 may have died as a result of Cyclone Nargis, tens of thousands greater than the latest government estimate, which put the death toll at about 23,000, with more than 40,000 missing. Earlier, U.N. Secretary-General Ban urged Myanmar's government to speed up the arrival of aid workers and relief supplies after the cyclone left an estimated one million homeless.
For more information, see: http://wsj.com?mod=djemalertNEWS

 

 * Flood risk fear over key UK sites *
Hundreds of power substations and sewage plants are potentially at risk from flooding, the BBC learns.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/uk_politics/7386383.stm

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Iranian Situation and Other Man Made Disasters

 

Iran says April mosque blast a bombing, bomber detained
AFP via Yahoo! News Wed, 07 May 2008 12:15 PM PDT
Iran said on Wednesday that a blast in a mosque that killed 13 people in the southern city of Shiraz last month was indeed a bombing and that the suspected mastermind had been arrested.

 

US sees Iran as potential threat in Latin America
AFP via Yahoo! News Wed, 07 May 2008 8:44 AM PDT
Isolated Iran sees Latin America as a place to push back US influence, from which it could maintain a terrorist threat against the United States in the event of a conflict, a senior US official warned Wednesday.

 

Iran protests to Iraq over disputed Gulf islands
AFP via Yahoo! News Wed, 07 May 2008 5:36 AM PDT
Iran has protested to Iraq over reports that Baghdad had backed the United Arab Emirates' claim to three islands in the Gulf, the foreign ministry said on Wednesday.

Iran hardliners criticize Khatami's "insulting" speech
Reuters via Yahoo! News Wed, 07 May 2008 4:47 AM PDT
Iranian hardliners have criticized moderate former President Mohammad Khatami for a speech they deemed insulting to Iran's late revolutionary leader, newspapers reported on Wednesday.

 

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Opalesque’s Corner

 

- Opalesque Exclusive: Tiburon: China still makes sense - the come-back of Taiwan - Greater China Fund up 21.56% YoY
- MENA Special: Opalesque Exclusive: Insparo Asset Management launches Africa & Middle East Hedge Fund with $125m, Exotix, Michael Spencer`s IPGL to seed fund, Global hedge fund investors expect Mid-East, North Africa to be top performers in 2008 says Deutsche`s survey
- Baring Asset Management has interest in open-ended funds of hedge funds, Aberdeen CEO ponders further hedge fund launches
- Assets: Blackstone raises $1.3bln CLO Fund, Paul Capital raises $1.6bln secondaries fund, London hedge funds set for asset declines lack of new investments compounds concerns, RAB deepens the gloom, Hedge fund investors defy bearish outlook, to invest $200bln in the next year
- Fund Closures: Thames River shuts Tybourne Fund after manager resigns
- Indices: HFRX Indices are up in April but most still down YTD, Equity Hedge Index best performer (+2.40%), Distressed Securities Index worst performer (-0.88%), Macro Index still best performer YTD (+8.58%)
- Hedge fund replicators have performed poorly in crisis
- Regulatory:  Opalesque Exclusive:  California regulatory agency abandons scheduled requirement for investment advisors to register with the state, Bush nominates law professor Troy Paredes to SEC
- SPACs: U.S. asset manager Angelo, Gordon bucks trend, lists a SPAC
- Trends: Conditions ripe for hedge fund seed investors, Secondary private equity funds to capitalize on liquidity-starved hedge funds and banks
- UBS Update: UBS to sell subprime assets to fund run by BlackRock
- Credit Crunch Update:  Legg Mason AUM down; firm to raise $1 billion, Thain: Merrill won't raise more capital, worst of credit crisis over, Deutsche Bank CEO: end of financial turmoil in sight, Credit crisis discussed (video), Fannie`s earnings reveal $2bln loss, dividend-cut plan, but investors continue purchasing stock, Fed seeks approval to pay interest to banks
- Comment:  Why investment banks should not buy hedge fund stakes
- Research:  HFN releases new report on real estate and mortgage focused funds, Celent launches finance, risk & compliance research service
- Book: Opalesque Exclusive:  Revisiting Benjamin Graham and David L Dodd's Security Analysis - 75 years later
- People:  RBC Dexia appoints Susan Pike as Global Head, Market Products & Services, Caliburn Capital Partners LLP announces new appointments, Chris Senyek joins ISI to head its new accounting & tax policy research team, Former Merrill Lynch executive will head new effort Glocap HR practice
- Commodities: Analyst warns of oil at $200 a barrel, Gold rises as dollar declines, oil tops $122, silver gains, Baltic Index rises to 4-month high on Atlantic vessel shortage
- Environmental Trading: CME hopes to `catch up` on carbon trade, Climate Change Capital sells stake, gets FOF seeding
- Institutions: European pensions may be forced to slash alternative holdings to reduce funding gap, European funds in widespread private equity surge
- Middle-East: Hedge funds put down roots in Middle East, MENA Capital, Pantera, Argent have already started, Fitch places Arab Banking Corporation on rating watch negative, due partly to significant trade losses from hedge funds
- Asia: Hedge fund manager interview:  Mr. Hong Liu, CEO/CIO of Shanghai Bohong Fund Management, China Securities Regulatory Commission allows 2 more fund companies to invest overseas
- Activist News: Icahn, Peltz used Morgan Stanley to take Motorola, Heinz stakes, JPMorgan in $3.6bn Target card deal, Final extension for AsiaPharm takeover set for May 22, Hedge fund manager encouraging vote against Yahoo board members July 3, Lampert ups AutoNation stake, Update:  Insituform mails letter to stockholders about hedge fund Water Asset Management
- News Briefs: ACP Mezzanine to raise more capital, uantifi to partner with Rickie Market Solutions for Japan expansion, UBS faces U.S. tax evasion probe, employee detained, Mideast funds face call for greater transparency, Abu Dhabi bourse renamed/rebranded
- ...And finally: Rio de Janeiro tour company in trouble for having tourists meet the `locals`
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

My Brilliant 61-Day Wall Street Career
New York Times - Wednesday May 07, 07:49 BST

 

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Funnies, Facts, Quotes, etc….

 

contrite KON-tryt; kuhn-TRYT, adjective:

1. Deeply affected with grief and regret for having done wrong; penitent; as, "a contrite sinner."
2. Expressing or arising from contrition; as, "contrite words."

 

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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.