Main News

 

Monday , 19 May 2008
Barclays analysts say it is too early to determine the potential impacts of the massive Chinese earthquake on base metals supplies, suggesting that power shortages and logistical difficulties present a greater risk, but are wary on silver outlook.

 

 

Pumping Saudi Oil May Ease Troubled Waters
May 19, 2008 1155 GMT
Relief on the oil supply side as the Saudis agree to pump an extra 300,000 bpd. Saudi output will now be at its highest level for two years. Is this the shot in the arm the world economy needs? Maybe — but it’s also more than that.
http://www.stratfor.com/podcast/pumping_oil_may_ease_troubled_waters_0

 

Analysts predict steel prices to remain high
Steel prices that have shot up almost 50% this year are unlikely to fall significantly in the near future. With raw material costs mounting and global demand still brisk, prices will peak soon and then fall slightly from today's price of up $1,150 per ton of hot-rolled steel to $800 or $900 a ton, industry consultant Michael Locker said. "But I don't see prices going back to the $400 we had last year," he said. Reuters (18 May.)

 

Strategies fall into a boom-and-bust cycle
Alfred Winslow Jones, credited with creating the first hedge fund, wanted to make money irrespective of whether markets rose or fell. This guiding principle seems to have been lost in the evolution of the industry and hedge funds have proven to be as prone to the vicissitudes of the market as the common long-only fund.
http://mail2.efnmail.co.uk/r/364356/MTk4MTI1OjE3MzQw/

 

Quant managers think outside the black box
Quantitative fund managers, who use computer models rather than human judgment to pick stocks, have continued to suffer since the credit crisis threw their calculations into confusion last summer.
http://mail2.efnmail.co.uk/r/364362/MTk4MTI1OjE3MzQw/

 

Roundtable: Quant tested by difficult conditions
Statistical models came under pressure during the credit crunch. A panel of industry specialists looks at the future of computer-driven strategies.
http://mail2.efnmail.co.uk/r/364380/MTk4MTI1OjE3MzQw/

 

FDIC head urges plan for investment bank failures
The head of the Federal Deposit Insurance Corp. said U.S. officials should have a plan ready to shut down the next investment bank on the brink of collapse. Oversight of investment banks has increased since the Federal Reserve's emergency bailout of Bear Stearns in March. FinancialWeek/Reuters (16 May.)

 

Deutsche Bank CEO: Credit crisis end drawing near

Deutsche Bank's Josef Ackermann also predicted his company could emerge from the season of write-downs stronger than before the crisis took root last summer. 
» Read the Full Story

 

Fresh crisis looms as recovery starts
There is muted talk of a recovery in the credit markets. Risk premiums on financial institution, corporate and asset-backed debt have tightened since mid-March, bond issuance last month hit record levels and investment banks are selling leveraged loans with more ease than they have in any month since last August.
http://mail2.efnmail.co.uk/r/364341/MTk4MTI1OjE3MzQw/

 

AP7 switches to hedge fund replication
http://www.ipe.com/news/AP7_switches_to_hedge_fund_replication_28016.php

 

Sun, 18 May 2008, 19:36

FT.com
Hedge funds show their best performance in their first two years, and produce lower returns as they get older and larger, a study shows. The research, by Petrac Financial Solutions, software provider, includes data up to the end of last year - when many hedge funds suffered poor performance because of market volatility brought on by the credit crunch in the US.

 

Hedge fund plunders Lehman prime execs
HedgeCo.net - West Palm Beach,FL,USA
Asian Investor - Hedge fund manager CQS has hired Michael Schulz and Laura Hui from the prime broking department of Lehman in Hong Kong. ...

 

Did Short Sellers Tarnish Hedge Fund IPO?
New York Times Blogs - New York,NY,USA
Sprott Inc.’s less-than-stellar market debut last week has Eric Sprott, the hedge-fund firm’s founder, chairman and controlling shareholder, thinking that ...

 

GLG Lands $3 Billion 130/30 Mandate
By: Bill McIntosh, Senior Financial Correspondent
Posted: 05/19/2008 3:46:12 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3476.html

 

Sat, 17 May 2008, 23:09

Today's Zaman Hedge funds, which have created storms in global financial markets, are becoming more of an issue in Turkey. The debates and accusations regarding hedge funds, which some claim started Turkey's major economic crisis in 2001, had peaked right after a significant capital outflow from Turkey in June 2006. The large capital outflow -- nearly USD11 billion -- in that period was the result of mobilizing hedge funds. A central bank official, who chose to remain anonymous, said the rapid entry and exit of short-term portfolio investments, namely hot money, most of which was made by hedge funds, severely damaged the country's economy.

 

In recent months the Spanish property market has been hit hard, with many suggesting price falls of in excess of 30 percent so far. As a result, jobs in the construction sector have gone, and this will certainly impact businesses that rely on a strong construction industry to survive.

Full Story...

Italian Activism No Longer an Oxymoron
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 05/19/2008 3:53:18 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3477.html

 

By KAJA WHITEHOUSE

Barclays Global Investors, the money-management firm known for inventing the index fund, may be losing a key asset: its brainpower. Renowned financial whiz Richard G. Sloan, who crossed over from academia just two years ago, is thinking of...full story

 

The Virtues of Contrary Thinking
New York Times - Sunday May 18, 07:42 BST

 

Suitors line up to manage $10bn Saudi endowment fund
Leading global fund managers and private equity firms are quietly lining up for a chance to manage another new and significant pool of money in the Middle East, an endowment for a new Saudi university with at least $10bn (?6.4bn) in assets.  (Financial Times)
http://mail2.efnmail.co.uk/r/364520/MTk4MTI1OjE3MzQy/

 

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Yield Curve Corner

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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/TRCHalong140_GJ.jpg

 

Chinese earthquake's impact also economic
The economic impact of China's deadly earthquake is surfacing even as aftershocks continue. Economists predicted only limited effects from the temblor that killed about 42,000 in Sichuan province and left as many as 5 million homeless. But fear has led laborers to demand government inspectors confirm the integrity of factory buildings before they will return to work. Many companies remain closed. Across China, grains, hydroelectric power and chemicals are becoming more scarce and expensive. The Washington Post (19 May.)

 

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Iranian Situation and Other Man Made Disasters

 

 

Iran arrests Bahai 'leadership'
BBC News Mon, 19 May 2008 11:55 AM PDT
Members of the Bahai faith say their entire leadership in Iran have been arrested by the authorities.

 

Trip to Iran fascinating, but woman grateful to be an American
The Arizona Republic Mon, 19 May 2008 10:01 AM PDT
Marge Thornton of Tempe writes about her recent trip to Iran.

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Opalesque’s Corner

 

- Fund launches: Laven Partners launches Redtower Global Macro Fund to exploit global macro themes, Coutts launches Asia FoHFs, AUM exceed $4bln making it one of the largest FoHFs managers in Europe, Update: Investcorp plans distressed mortgage, LBO debt fund advised by John Paulson, Sator Group`s Arpe launches his first hedge fund
- Opalesque Exclusive: Highbridge launches quant fund on French market, Opalesque Exclusive: European HF industry remains dynamic, assets grew 5th year in a row to 2007, JPMorgan Chase's Bill Winters senses Wall Street is at a historic juncture
- New HF Firms: Merriman Curhan Ford Group starts asset management unit with hire of hedge fund manager Steven Ledger, Ex-Fidelity manager Clapp sets up new hedge firm
- Niche Investing: YouGov, Numis and FOUR launch first research-driven fund, Film financing: The true story of a script, Hollywood dreams and vanishing capital
- Performance: Opalesque Exclusives: GlobalAgriCap Fund gains +6.07% in April in agriculture rally, +14.06% YTD, Trident Pacific`s Japan Absolute Return fund bounces back in April with +8.56%, new director at new offices, Iceberg Alternative Real Estate Fund outperforms market, returns 29% in debut year, Credit hedge funds catching a falling knife
- Indices: Credit Suisse launches L/S equity replication index, Scotia Capital Canadian HF Index down -2.41% for April, Brazil`s Andima officially launches hedge fund index
- IPOs: Dexion prepares LSE listing of its Equity Alternative Limited FoHF, Opalesque Exclusive: Dexion on listing hedge funds in the current market conditions, Comment: `Blank-check` IPOs are losing edge as primary buyers are stepping back
- Exchanges: LSE chief furious with LSE shorters
- Pertrac Study: Age and size matter in hedge funds` performance which is best in first two years
- Manager Profiles: Seabreeze Partners` Douglas A. Kass on short selling, Mario Gabelli: Prized value investor who seeks out the catalyst
- Strategies: Comment: Amid rough patch, hedge funds have a choice of five strategies, Strategies fall into a boom-and-bust cycle
- Views: Putnam bets against US equity optimism
- Credit Crunch Update: Rights issues cannot end crunch, managers say, Deutsche CEO says end of credit crisis near, Lehmans to unveil job cuts
- People: CQS announces senior hires in Hong Kong, Credit Suisse hires Quaesta Capital CEO Wiedmann as FX head, FoF manager Drum Capital hires Pequot`s Amber Tencic as finance director, SGAM promotes Denis Lefranc to Asia-Pacific CEO
- Regulatory: Paul Sarbanes expects increased investment banking `oversight` by Fed and SEC post sub-prime, Sarbanes urges tougher bank, hedge fund regulation, Hedge funds under scrutiny: two trends in debate over regulations, Guidelines avoid heavy-handed rules, Industry research paper predicts the move towards standardization and regulations in hedge fund portfolio pricing, Thomson Reuters to launch webvaluation risk community
- Institutions: Finnish pensions scheme to boost alternatives, Suitors queue to run $10bln Saudi fund, Inalytics launches new service for pensions funds to analyse 130/30 funds
- Commodities: Ex-Amaranth trader hunter helps deliver 17% gain for PE firm Peak Ridge, Earthquake in China impacts 13.2 million cubic meters of gas production,  Comment: Who`s to blame for oil and food prices?
- Europe: Nordic central banks step in to back Iceland
- Asia: Foreign institutional investors queue up for Indian stocks as rupee falls against dollar, Why India (video), Tokyo set to relax rules on foreign takeovers
- Events: Hedge-fund traders forgot market blues, sung rock for charity in London last week
- Sovereign Wealth Funds: Gulf funds are bigger than ever and growing fast
- Activist News: Vaalco Energy sues Nanes Delorme, Delphi sues Appaloosa for pulling out of financing deal, Atos says Centaurus, Pardus should be denied majority
- News Briefs: Simran Capital Management awarded `2008 hedge fund of the year`, UK HF house Lionhart aims high with new PE fund, SGX MSCI Asia APEX 50 Index Futures to be launched this week
- And Finally. Game of cat and mouse blacks out Albania`s capital
- 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….

 

obtrude uhb-TROOD; ob-, transitive verb:

1. To thrust out; to push out.
2. To force or impose (one's self, remarks, opinions, etc.) on others with undue insistence or without solicitation.
3. To thrust upon a group or upon attention; to intrude.

 

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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.