Main News

 

Industry Research Paper Predicts the Move toward Standardization and Regulations in Hedge Fund Portfolio Pricing
Business Wire via Yahoo! Finance Tue, 20 May 2008 7:13 AM PDT
NEW YORK & SAN FRANCISCO & LONDON----Paladyne Systems, Inc., a leading solutions provider for the hedge fund industry, Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, and NumeriX, the leading independent provider of advanced analytics for the derivative and structured products market, today released a research paper exploring trends in ...

 

Lampert, Wood show risk of ‘concentrated’ hedge funds
Tehran Times - Iran
When Jon Wood opened his Monaco-based hedge fund, the former UBS AG trader told investors he'd beat the market by buying stakes in no more than 40 companies ...

 

Study: Quantitative fund managers must reassess models
These are tough days for quantitative fund managers. A study by the CFA Institute released last week found that a reliance on similar market factors has made it hard for many quant managers to generate returns. "If your model uses only public information, then everyone else has the same insights," said Michael O'Brien, head of European distribution at Barclays Global Investors. "Quant managers have traditionally taken their insights from the world of academia, but in the future they will have to rely less on this." The study found a need for managers to "update models continuously." FinancialWeek (20 May.)

 

In 2007 there was no denying that the Indian equities market was hot. In May India became the third emerging stock market after Russia and China to surpass US$1 trillion in value. By the end of August, the Bombay Stock Exchange Sensex 30, the benchmark index for Indian stocks, was up nearly 16 percent on the year. After the U.S. Federal Reserve cut interest rates in September, the Sensex index soared even further, rising nearly 20 percent in a single month. This dramatic growth was attributable not only to the country’s continuing economic boom at home, but also to rising capital inflows from abroad.

Full Story...

 

 

Gavekal Says Credit the Fed for Low Inflation
By: Emma Trincal, Senior Financial Correspondent
Posted: 05/20/2008 3:53:47 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3478.html

 

INVESTORS' SOAPBOX PM
Fannie, Freddie Could Raise More Equity Legislation could limit the growth of the GSEs or require an equity raise.
http://online.barrons.com/article/SB121123312273205013.html?mod=djemBF

 

THE STRIKING
PRICE DAILY
Don't Read Too Much Into a Rising VIX Though the stock market's fear gauge may be gaining again, there's no need to assume a defensive options posture -- at least not right away.
http://online.barrons.com/article/SB121123314077605071.html?mod=djemBF

 

 

Wachovia, Fifth Third had losses in Citi hedge fund
Reuters via Yahoo! News Mon, 19 May 2008 7:53 PM PDT
Wachovia Corp said on Monday it has had significant losses from a Citigroup hedge fund, joining Fifth Third Bancorp , which disclosed its loss in an April lawsuit.

 

Global Fixed Income Research <http://now.eloqua.com/e/er.aspx?s=795&lid=266&elq=91F126986F054431AFB7CCE3B3D2DCC2>

 

"Pure alpha" is worth paying for - AP2
http://www.ipe.com/news/_Pure_alpha_is_worth_paying_for_AP2_28026.php

 

New! Quarterly Update: Q2 U.S. Corporate Default Outlook <http://event.standardandpoors.com/?elqPURLPage=151>
Diane Vazza discusses recent trends in corporate default activity.
Watch Now <http://event.standardandpoors.com/?elqPURLPage=151>

 

Index Speculators Blamed for 'Demand Shock'
By: Christopher Faille, Senior Financial Correspondent
Posted: 05/20/2008 5:24:39 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1263.html

 

RAB Special Situations Hit By Small-Cap Rout
By: Bill McIntosh, Senior Financial Correspondent
Posted: 05/20/2008 12:27:49 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail14992.html

 

Funds Of HFs Look To Specialize More
Investors of funds of hedge funds may be growing more familiar with them, but complete understanding is a bit trickier.

 

By MARK DeCAMBRE

Two of the biggest names in private equity say they're being left out in the cold in the case of a bankrupt homebuilder that they claim fraudulently obtained a credit line designed to keep it afloat. Carlyle Group and Blackstone Group's GSO...full story

 

Tuesday , 20 May 2008
Billionaire UK-based philanthropist George Soros, who owns stocks valued at $2.2 billion, appears to be bullish about the world’s largest iron ore miner Vale.

 

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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/FSHSasia141_MO.jpg

 

CME Group announced that it is expanding its suite of temperature-based products and is offering weather contracts on six U.S. cities and one European city. Cooling Degree Day contracts were available for trading starting yesterday with Heating Degree Day and Weekly contracts to start in June and July, respectively.

Full Story...

 

NOAA Expects Slightly Below Average Central Pacific Hurricane Season
7thSpace Interactive (press release) - New York,NY,USA
Tropical cyclone watch and warning products will summarize all current watches and warnings in one location. New video teleconferencing equipment provided ...

 

Survivor pulled from China quake *
A man trapped for 179 hours under the rubble of a power plant after China's quake is rescued, state media say.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/asia-pacific/7409796.stm

 

China's post-quake challenge: 5 million homeless

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Iranian Situation and Other Man Made Disasters

 

U.S.: No Intention To Attack Iran -- White House
May 20, 2008 1544 GMT
The United States does not intend to attack Iran before the end of President George W. Bush's...
http://www.stratfor.com/sitrep/u_s_no_intention_attack_iran_white_house_0

 

Diplomats tell AP Iran stonewalls IAEA probe
AP via Yahoo! News Tue, 20 May 2008 12:06 PM PDT
Diplomats say that a new attempt by the U.N. nuclear watchdog to probe allegations that Iran tried to make nuclear arms has failed.

 

White House denies imminent plans to attack Iran
CNN.com Tue, 20 May 2008 11:59 AM PDT
The White House on Tuesday dismissed an Israeli media report that President Bush intends to attack Iran before his term ends in January.

 

Iran nuclear plans could trigger Mideast arms race: study
AFP via Yahoo! News Tue, 20 May 2008 7:20 AM PDT
Iran's nuclear programme could trigger a race to develop atomic weapons in the Middle East, a study warned Tuesday, highlighting a recent surge of nuclear activity in countries in the region.

 

Iran agrees to Solana's nuclear trip, no date set
Reuters via Yahoo! News Tue, 20 May 2008 1:28 AM PDT
Iran said on Tuesday it had agreed to a visit by EU foreign policy chief Javier Solana to submit an upgraded package of incentives aimed at coaxing the country into halting uranium enrichment, a news agency reported.

 

China: Threats and Warnings Ahead of the Olympics
May 19, 2008 2103 GMT
A stream of low-key cautions and alerts for Beijing and Shanghai ahead of the August Olympics bears watching.
http://www.stratfor.com/analysis/china_threats_and_warnings_ahead_olympics

 

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Opalesque’s Corner

 

Fund Launches: Barings launches global agriculture, fund believes rising commodity prices will be boon to global ag industry
- Performance: Opalesque Exclusive:  Danix Global Macro Fund benefits from higher volatility environment, Opalesque Exclusive: GLS Arabian Fund reports +11.46% for April, 0.05% YTD, RAB`s Special Situation Fund suffered losses but expects to reap Asian reward
- Investors: Opalesque Exclusive: Are investors shifting away from FoHFs and towards single-manager HFs? Part 1 - Dexion: Investors now invest in both
- Legal:  Update:  Sentinel makes fraud settlement of $10.7m on $350m suit, Massachusetts manager of River Stream Fund charged with improperly operating hedge fund, Update: Mark Lay fraud case cost Ohio millions, Reticent hedge funds fret under bankruptcy code
- Regulators:  AIMA appoints Ivy Asset Management Co-President and MFA Board of Director as new US Council Member, Canadian regulators approve RS rules respecting "off-marketplace" trades,  Opalesque Exclusive: Japan FSA publishes `Progress status of initiative toward better regulation`, Update: Japan is urged to cut corporate tax rate of 39.75% and open up to foreigners
- Credit Crunch Update:  UBS` Ospel wagered and lost on $100bln in US asset backed securities, Bank sues, losses may pressure Citigroup to give banks money back, Wachovia, Fifth Third had losses in Citi hedge fund, Hedge funds in swaps face peril with rising junk bond defaults, IMF`s Lipsky says `serious risks to global financial stability` remain, ECB head warns of `very significant market correction`, Credit should be able to perform even in the economic slowdown - New Star, Lehman Brothers shuts down Australian asset management business
- Credit should be able to perform even in the economic slowdown - New Star
- People: Schroders appoints J. Eric Nelson as US Alternatives Director, Mercer appoints Tim Gardener as Global Chief Investment Strategist as Andrew Kirton named President and Global Head of Investment Consulting, Mirae Asset makes two key hires for new London operation
- Manager Profile: Nicolas Berggruen, enigma who reaps special rewards
- Institutions: Colorado Fire & Police add Gottex to watch list for not meeting performance expectations, Sweeden`s AP7 switches from FoHFs to hedge fund replication
- 130/30:  GLG Partners to manage three 130/30 accounts as part of $3bln mandate from Banca Fideuram
- Trends: Managers call in the private investigators
- Commodities:  Gold higher as crude oil climbs; rice up, London Metal Exchange trading shares jump 7.7% to match record as hedge funds and pensions increase metals investments, Lehman warns of commodity bubble
- Europe: Hedge Funds court controversy In Turkey - report claims HFs` capital outflow mobilization in 2006 damaged the economy
- Asia: Asia funds fear inflation may mean sucker`s rally
- Events: Opalesque Webinar: Creating reinsurance firms and banks - new permanent capital vehicles for hedge funds and fund of funds, June 12, Hedge Funds Care opens registration for June 10th Denver Golf Tournament, June 10, Colorado, 100-Women-In-HFs: Surviving market volatility - Advice from risk management practitioners, June 16, London
- Sovereign Wealth Funds:  Gulf Kingdom $10bln fund trying to create vehicle to invest in hedge fund space
- Exchanges: Goldman Sachs, Morgan Stanley and UBS link access to dark liquidity pools, CME Group to offer weather contracts on 6 US and 1 European cities, CME Group announces completion of combined CME/CBOT trading facility, London Stock Exchange to establish equity research service for smaller companies to promote liquidity
- Activist Investing:  TCI takes stakes in CME and NY Merc Exchanges as Atticus halves Nymex and reduces NYSE Euronext, GoldenTree disappointed in Care Investment Stock, recommends sale of company, US hedge fund Steel Partners seeking to raise stake in insurer Conseco, In a rare French campaign, activist hedge funds pursue shake-up of Atos` board
- News Briefs:  Markit announces red license for buy-side, will support industry commitments to NY Fed, Hedge fund horse Big Brown wins Preakness, breeding rights sold for more than $50m, Gas Giant Gazprom joins 130 members of Nordic power exchange to trade carbon products, MF Global set to hire new risk officer, close branches, Direxion portfolios seek triple returns through new leveraged ETFs, Kinetics` chairman to create $145m `ultra-luxury resort` on the site of the old Lantana cottage colony, Greenwich resists plan for 26-toilet home in hedge-fund capital
- And Finally. July 22, 1961: What life will be like in the year 2000
- 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….

 

Potemkin village puh-TEM(P)-kin, noun:

An impressive facade or display that hides an undesirable fact or state; a false front.

 

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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.