Main News

 

Asian funds warned over concentration risk
Asian countries are exposing their citizens to a concentration of risk comparable to that which occurred in the Enron scandal, delegates at Mercer’s Asia Pacific Investment Forum have been told this week.

 

Lampert, Wood Reveal Failings of `Concentrated' Hedge-Fund Bets

 

WSJ.com - Some Winners in the Tumult Are Emerging*

 

Old Mutual unit takes $900m hit on Bear Stearns collapse
Old Mutual on Thursday admitted that it was unlikely to hit its target of taking funds under management to £300bn (?380.5bn) as it emerged that one of its US boutique subsidiaries took a bath on an investment in Bear Stearns.  (The Times)
http://mail2.efnmail.co.uk/r/362037/MTk4MTI1OjE3MjUw/

UBS Agrees to Repurchase Illiquid Auction Rate Securities from Massachusetts Municipal Entities

Posted: 08 May 2008 10:41 AM CDT

 

Hedge funds start to buy bank debt
Hedge funds and other investors have started buying leveraged loans and asset-backed securities that have been languishing on banks' balance sheets since the credit crisis began last summer. This is the latest indication that the credit market may have turned.
http://mail2.efnmail.co.uk/r/362406/MTk4MTI1OjE3MjYz

 

KBC fund cuts out the volatility risks
The ?1bn ($1.5bn) pension scheme sponsored by Belgian banking group KBC drew the attention of delegates at last month's Financial News pension summit as one of the few to have shifted to a full-blown liability-driven strategy.
http://mail2.efnmail.co.uk/r/362420/MTk4MTI1OjE3MjYz/

 

Chilean Drought, Power Shortages Drive Up World Metal Prices
(By Saijel Kishan and Gavin Evans, The Washington Post)

 

Investors widen hunt for alpha
Only 17% of European pension schemes do not believe that absolute return products will play a significant role in the future of pension fund management, according to a poll conducted by Richard Davies Investor Relations on behalf of Financial News.
http://mail2.efnmail.co.uk/r/362438/MTk4MTI1OjE3MjYz/

 

Funds of hedge funds look for greater specialisation
Investors who swallowed marketing pitches about funds of hedge funds may be suffering indigestion as they wonder what they have bought.
http://mail2.efnmail.co.uk/r/362439/MTk4MTI1OjE3MjYz/

 

AIG Private Equity, Hedge Fund Returns Plunge 84% (Update1)
Bloomberg - USA
By Hugh Son and Erik Holm May 9 (Bloomberg) -- American International Group Inc., the world's largest insurer by assets, said private equity and hedge fund ...

 

HEDGE FUND HIP-HOPPING By TERI BUHL Latin hip-hop star Pitbull is one unhappy puppy. Irate over what he feels is a lack of support from his label, TVT Records, the top-10 rapper has been snarling for months at both the label and its owner, Steve Gottlieb, and has even gone on the...full story

 

Hedge Fund Firm Posts Quarterly Loss
NYTimes.com via Yahoo! Finance Fri, 09 May 2008 6:37 PM PDT
The Fortress Investment Group, a hedge fund and private equity firm, reported a quarterly loss on Thursday.

 

One Bear Stearns Hedge Fund Seems to be Getting It Right
New York Times Blogs - New York,NY,USA
Investment bank Bear Stearns may have hit rough times but at least one of its hedge funds, the $1.2 billion Emerging Markets Macro Fund, is bouncing back ...

 

Credit-Default Swaps: Weapons of Mass SpeculationCredit-default swaps are destabilizing the bond and stock markets. Tales of poison-pen tactics, fear-mongering and fatal feedback loops.
http://online.barrons.com/article/SB121037952364682261.html?mod=djemWR

 

Rauf Ashraf, Emerging Hedge Fund Manager, Diversifies to Distressed Opportunities
PRWeb Sun, 11 May 2008 9:05 AM PDT
Rauf Ashraf has been identified by Goldman Sachs as a rising star and recommended by the former Fidelity Investment's $60 billion dollar Magellan Fund Manager. (PRWeb May 11, 2008) Read the full story at http://www.prweb.com/releases/2008/05/prweb931754.htm

 

Barron's 500 In our annual ranking, a look at how Laurence Fink guided BlackRock to the No. 1 spot. Runners up: Research in Motion, Varco and Schlumberger.http://online.barrons.com/article/SB121037315019681755.html?mod=djemWR

 

For corporations, social responsibility has become a big business. Companies spend billions of dollars doing good works -- everything from boosting diversity in their ranks to developing eco-friendly technology -- and then trumpeting those efforts to the public. But does it pay off?

Hardball in Vallejo, California by Michael Shedlock

 

Even Buffett Isn't Perfect by Vinny Catalano

 

Alpha-Centric Investing: A 'Seismic Shift' by Christopher Holt

 

The Pitfalls of Quarterly Hedge Fund Redemptions by Roger Ehrenberg

 

Is Currency Hedging Worthwhile When Investing Overseas? by Larry MacDonald

 

INSIDE: The global business environment is a fast-moving one, and it requires large companies to adapt quickly. So-called captive centers, overseas subsidiaries set up by global corporations to serve the parent company, offer a striking example of this truism; read how Apple's trademark for its iPod protects its brand -- and offers lessons for other companies on how to leverage their intellectual property; and, in their first incarnation, group buying services failed. A similar concept in China may provide a road map for how to do it right. Business Insight is a Journal Report produced in collaboration with MIT Sloan Management Review.
http://online.wsj.com/public/page/2_1573.html?mod=djemSPECIAL

 

Former Peloton head to carry on trading
One of the co-founders of collapsed UK hedge fund manager Peloton Partners is to try carrying on as a manager, operating from his former firm's Californian offices.
http://mail2.efnmail.co.uk/r/362409/MTk4MTI1OjE3MjYz/

 

Amaranth Founder Maounis to Start New Multistrategy Hedge Fund
Bloomberg - USA
By Katherine Burton May 10 (Bloomberg) -- Nicholas Maounis, the hedge-fund manager whose Amaranth Advisors LLC collapsed under a record $6.6 billion loss in ...

 

Finding Alpha in Environmental Performance

By Martin de Sa'Pinto, Senior Financial Correspondent | 05/09/2008

Mainstream investors who base their strategy on environmental factors don't just want an ethically ‘correct' portfolio, they want to make money. Some believe ...

 

Endeavour Considers Launching New Fund
By: Bill McIntosh, Senior Financial Correspondent
Posted: 05/09/2008 2:46:38 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3466.html

 

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Yield Curve Corner

 

Vital Signs: Scoping the Second Quarter
BusinessWeek - USA
Investors will be especially interested in Chairman Bernanke's two speeches, on Tuesday and Thursday, during which he is expected to touch on credit-market ...

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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/VSHchaiten130_G10.jpg

 

Myanmar: Junta Seizes Supplies, U.N. Blocks Aid May 9, 2008 1558 GMT The United Nations halted aid to Myanmar May 9 after the junta seized aid shipments headed for...

 

UN officials: Myanmar cyclone a 'major, major disaster'

 

The United Nations said it would suspend all further aid shipments for survivors of last week's devastating cyclone in Myanmar after the country's ruling junta seized all aid material that had been flown in so far. The U.N.'s World Food Program "has no choice" but to suspend further shipments until the matter is resolved, WFP spokesman Paul Risley said. All "the food aid and equipment that we managed to get in has been confiscated," he said, including 38 tons of high-energy biscuits.
http://online.wsj.com/article/SB121033197923980529.html?mod=djemalertNEWS

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Iranian Situation and Other Man Made Disasters

 

Iran Accuses U.S., Britain In Fatal Blast
Washington Post Fri, 09 May 2008 6:42 AM PDT
TEHRAN, May 8 -- Iran's Intelligence Ministry has accused the United States and Britain of involvement in an April 12 bomb attack at a religious center in the city of Shiraz that killed at least 12 people and wounded 202.

 

Shell and Repsol drop Iran gas project
Financial Times Sun, 11 May 2008 11:09 AM PDT
Royal Dutch Shell and Spain’s Repsol have pulled out of one of Iran’s biggest gas projects, dealing a blow to Tehran’s attempts to expand its energy exports in the face of US and international sanctions.

 

Iran produces 5m sq.m of hand-woven carpets annually
Payvand Iran News Sat, 10 May 2008 10:29 AM PDT
Annually five million square meters of hand-woven carpets are produced in Iran, Director of Iran's National Carpet Center Morteza Faraji said here on Saturday.

 

 

 

Iran's Weapons
CBS News Fri, 09 May 2008 9:01 AM PDT
IRAN'S WEAPONS....Tina Susman of the LA Times reports that Iranian involvement in Iraq's civil war may not be everything it's been cracked up to be:There was something interesting missing from Maj. Gen. Kevin Bergner's introductory remarks to journalists at his...

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Opalesque’s Corner

 

- Fund Launches:  Opalesque Exclusive: Sherpa Asset readies to launch equities fund on June 1, Julius Baer announces launch of Absolute Return Emerging Bond Fund, Credit Suisse launches SICAV One (Lux) Global Tactical Asset Allocation 10% VaR to take advantage of markets fluctuations, SLI opens Global Absolute Return Strategies fund to retail investors
- Sponsors: Magnum Global Investments sponsors Crestridge Capital L/S offshore fund
- Performance: Opalesque Exclusive: GLS`s EM, macro and MENA hedge funds make a dramatic recovery in April due to GCC markets, Last year`s biggest losers rebound in Q1, Fortress posts surprise loss of $69m for Q1, Energy sector funds lead hedge fund rally in April, In currency market`s `trader`s dream`, hedge funds gained in Q1 2008, John W. Henry & Co`s fund rose 14%, Investors stand by 130/30 funds despite negative returns
- Assets: Highland seeks assets for new mortgage funds, Changes in total assets by strategy and net asset flow direction for Q1 2008 - HFR table, Emerging markets HFs see AUM decline by 5% in Q1 2008, from $115bln to $110bln - HFR
- IPOs: Sprott Inc. announces filing of final prospectus, to raise C$200m
- Indices: Barclay Hedge Fund Index gains 2.28% in April, CASAM CISDM Indices March 2008: HF index down 2.33%, CTA down 0.14%
- AdultVest nominated for 'Hedge Fund Launch of the Year', awards ceremony June 25
- Trends: Wary hedge funds scale back big directional bets, go into cash, Lampert, Wood reveal failings of `concentrated` hedge-fund bets, Hedge funds and banks turn to freight derivatives, account for 40% of market value compared to 15% last year
- Marketing: Comment: Standing out from the crowd is difficult - and now imperative
- Prime Brokers: TABB Group: Prime brokers to become banks` most lucrative business units, pulling in $11bln from hedge funds
- Hedge Funds in Credit Crunch: Maverick hedge fund sees more U.S. bank failures, Credit crunch forces some hedge funds to adopt `hybrid` PE/hedge fund structure, according to AIS Fund Administration
- Credit Crunch Update: Citigroup considers $400bln asset sale, to cut costs by 20%, JPMorgan CEO Dimon upbeat on state of US financial markets, Greenspan says worst of credit crisis over
- People: GLG loses another executive, other departures are expected, Citigroup moves top investment banker to Middle East to develop business
- Institutions: CalPERS commits nearly $2bln to PE and hedge funds, West Midlands Pension Fund to increase alternatives allocation to 25%
- Commodities: HSBC Absolute Return reduces commodity exposure from 17% to 2%, expects correction, Oil price to remain high for a decade, says BlackRock manager, Oil prices stress consumers (video), Goldman Sachs defends energy speculators in `Super Spike` report
- Exchanges: CME officials say don`t blame speculators, Need for cost cuts will drive exchange M&A
- Legal: Hedge fund SRM seeks judicial review over Northern Rock nationalization, Bear Stearns says new suit seeks to block merger, Tuckerbrook A.I. and Sumanta Banerjee fight over control of funds
- Europe: EDHEC to present survey results of European institutional investors at EDHEC Institutional Days in Paris, Three UK fund administrators merged to Phoenix Fund Services
- Asia: It`s official: South Korea to allow hedge funds next year, Cantor expands in Singapore, targets hedge funds, Head of China SWF sees opportunity in global instability, will not accept transparency proposals, Nikko`s Wilder says Japan attractive for investments
- Activist News: TCI demands disclosures from J-Power, Charming Shoppes and hedge funds reach board deal, UK hedge fund Algebris drops legal threat over Generali auditor
- News Briefs: London mayor chooses former hedge fund chief McGrath for economic development agency, BlackRock chief gives $10m to top college, Stellar Asset Management launches Baltic States property fund, ADB launches Climate Change Fund
- . And Finally: Swiss government stocks up on potatoes and sausages ahead of Euro 2008, in case of shortages
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

Ag Prices May Test Microfinance Model
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 05/09/2008 3:49:19 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3467.html

 

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Funnies, Facts, Quotes, etc….

 

acumen uh-KYOO-muhn; AK-yuh-muhn, noun:

Quickness of perception or discernment; shrewdness shown by keen insight.

 

parsimonious par-suh-MOH-nee-uhs, adjective:

Sparing in expenditure; frugal to excess.

 

World Problems For Future HF Managers...

 

 

 

There are some good ones in here…for some reason “Intermediate #1” cracks me up. 

And yes, the authors political affiliation is blatantly obvious…throughout the entire piece.

 

WORD PROBLEMS FOR FUTURE HEDGE-FUND MANAGERS.

BY BOB WOODIWISS

Elementary

(AGES 5–10)

 

1. Dick has $1 million. Jane has $1 million. If Dick and Jane both give their $1 million to T. Boone, how many millions will he claim he can turn it into?

 

2. On his way home from school, Kyle stops to buy a candy bar. It costs 69 cents. How much change should Kyle get back if he pays for the candy with a $1,000,000,000 bill?

 

3. Among those earning 10-figure incomes, Mr. Soros's total annual compensation is greater than Mr. Falcone's. Mr. Falcone's is greater than Mr. Griffin's. Mr. Griffin's is smaller than Mr. Soros's, and Mr. Paulson's is greater than Mr. Soros's.

 

In descending order, list the men by the respective hotness of their trophy wives.

 

4. A hedge-fund manager gets up at 5 a.m. It takes him 12 minutes to shower, 8 minutes to get dressed, and 20 minutes to eat breakfast. How big is his domestic staff?

 

 

 

Intermediate

(AGES 11–15)

 

1. Your middle-class parents have a combined household income of $115,000. You receive an allowance of $20 per week. If you save all your allowance for two years, how much debt will you have to finance to hostilely take over your family? How will you structure the debt?

 

2. The number of hours left in the New York Stock Exchange's trading day is one-third of the number of hours already passed. How many hours are there until you can start trading on the Tokyo Stock Exchange?

 

3. At 10 a.m., a private Gulfstream G650 takes off from New York, headed south to the Caribbean island of St. Bart's, traveling at a speed of Mach .9. At 11 a.m., a private Gulfstream G550 takes off from St. Bart's, headed north to New York, traveling at Mach .885. Both jets fly at 50,000 feet on parallel flight paths. When the aircraft pass each other somewhere over the Atlantic, how long after seeing the G650 will the owner of the G550 kick himself for not going top-of-the-line? (Answer should be expressed in nautical miles.)

 

4. In a given year, the Dow Jones Industrial Average rises 8.3 percent, the NASDAQ rises 7.6 percent, and the S&P 500 rises 7.9 percent. If, in that same period, you manage a $29 billion hedge fund that loses 11.6 percent, how large a year-end bonus are you entitled to? (Round to the nearest $10 million.)

 

 

 

Advanced

(AGES 16–18)

 

1. Mr. Smith is being investigated by the SEC for insider trading. Calculate the probability of Mr. Smith's relocation to Dubai.

 

2. If an American hedge-fund manager makes $900 million and is taxed at a rate of 15 percent, how many American factory workers making $32,500 and being taxed at a rate of 25 percent does that make a sucker of? (Show your work.)

 

3. Your mother gives you x dollars to put gas in the family car. Your father gives you y dollars to get a haircut. You lose x + y dollars betting against your high school's undefeated football team. Explain to your familial investors how "that's life."

 

4. Days before the housing bubble bursts, you short the ABX subprime index and, when the ensuing mortgage crisis causes millions of families to lose their homes to foreclosure, you realize a $550 million profit.

 

Since, for you, this is the opposite of a problem, find the opposite of an answer.

 

 

 

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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.