Main News

 

Euler Hermes ACI has released its global political and economic risk report, “The World in 2007: Update” covering the second half of 2007.

Full Story...

 

MF Global faces legal hurdles ahead of flotation
Financial News Online US - London,UK
The bankruptcy trustee to Refco, recently bought by MF, wants to claw back $57m relating to its shares in two Chicago exchanges. ...
See all stories on this topic

 

Gold, Other Metals Regaining Shine
After months of weakness, gold and silver stocks are finally regaining their  luster.
http://online.barrons.com/article/SB118398883318960857.html?mod=djemBF

 

Dow Jones Picks the Top 5 Hedge Fund Trades Thus Far
Source: CNNMoney.com
Despite the problems the industry faces from fractures in the sub-prime mortgage sector, some hedge funds continue to rake in big profits through astute stock trading, according to Hedge Fund Trades, the weekly e-newsletter from Dow Jones. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Hundreds Withdrew In Year After SEC Hedge-Fund Rule Vacated
Nasdaq Fri, 06 Jul 2007 3:03 PM PDT
WASHINGTON -(Dow Jones)- One year after an appeals court invalidated a rule requiring hedge-fund advisers to register with the U.S. Securities and Exchange Commission, hundreds of hedge-fund advisers have withdrawn from registration.

 

 <http://www.hedgefund-index.com/newstoday.asp> Alternatives IPO bandwagon is rolling
Source: InvestmentNews
Possible tax hikes and stagnant stock price movement aside, hedge funds and private-equity funds continue to beat a path to the public markets. Last week, New York-based Kohlberg Kravis Roberts & Co. became the latest 800-pound gorilla to climb on board the initial public offering bandwagon while hoping to raise a mere $1.25 billion.  More... <http://www.hedgefund-index.com/newstoday.asp>

 

Edwards Urges Rise In Hedge-Fund Taxes
Source: The Wall Street Journal Online
Democratic presidential candidate John Edwards proposed increasing taxes on private-equity and hedge-fund managers in three ways, saying it would make the tax code more fair without damaging U.S. capital markets. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Hedge fund launches shoot up in US
FT.com via Yahoo! News Mon, 09 Jul 2007 2:00 PM PDT
Hedge fund launches in the United States are up sharply for the year to date, with 72 new funds with a combined $14bn in assets beginning to trade, according to a survey.

 

Hedge fund fugitive arrested after five years
FT.com via Yahoo! News Mon, 09 Jul 2007 12:55 PM PDT
The manager behind one of the world's biggest hedge fund frauds was yesterday arrested in Austria after five years on the run.

 

Paulson hedge fund soars in June; subprime bets pay off again
Market Watch Mon, 09 Jul 2007 11:15 AM PDT
SAN FRANCISCO (MarketWatch) -- A credit hedge fund run by Paulson & Co. gained nearly 40% in June as subprime mortgage bets paid off again, according to a person familiar with the firm.

 

The New York Times Argues Against Hedge Fund Bubble Talk
Seeking Alpha via Yahoo! Finance Mon, 09 Jul 2007 2:15 AM PDT
Christopher Holt submits: Once again, the New York Times provides an all-too-uncommon rational and clear-headed analysis of the hedge fund industry - without the populist hype that many mass media outlets have come to rely on to sell papers.

 

Hedge Funds Find That Growth Opens Doors To New Financing Options
No longer the new kids on the investment block, hedge funds have grown up. With many funds boasting billions of dollars in assets and successful track records, their financing options are expanding beyond the limited avenues open to them just a few years ago. While hedge funds still depend predominantly on collateralized loans through prime brokers, investors' equity, and their own capital as sources of financing, the larger ones are dipping their toes into unsecured loans, bond offerings, and even securitization, in addition to IPOs.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQUYCSQAVsLgHxhilpuHQJhuV2VTT

 

Credit Trends: Global Potential Fallen Angels
By number of issuers, the utility, retail/restaurants, consumer products, high-technology, and media and entertainment sectors appear most vulnerable to downgrades to speculative grade from investment grade globally. Of the total, the utility sector led with six entities followed with retail/restaurants with four entities, and consumer products, high technology, and media and entertainment with three entities each.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQUYCSQAVsLgHxhilpuHQJhuV2VUT

 

A Hacker's Nasdaq
Andy Greenberg
Found a software security flaw? Now you can sell it to the highest bidder.

 

Dim Outlook for Oil Supply
A new report says that oil demand will far outpace supply during the next five years. Read More

 

US - The California Public Employees’ Retirement System (CalPERS) has admitted it needs to become nimbler and more responsive when responding to market dynamics

 

US - Sacramento County Employees’ Retirement System (SCERS) is set to treble its allocation to alternative investments.

Hedge Funds Eye Mexico Amid US Subprime Woes
Reuters - Monday July 09, 09:49 BST

 

How Risk Has Spooked The Rich
Marketwatch.com - Monday July 09, 09:51 BST

 

Now everyone wants to run a hedge fund
July 6, 2007 Friday
(The International Herald Tribune)

 

The dollar bounced back from near to a record low against the euro and its weakest level in more than 25 years against the pound this week as robust economic data helped ease worries about the US economy.

 

Dragged backwards through a hedge fund
The Observer - UK
Two tycoons have in the past few days earmarked stupendous sums for charity: hedge fund manager Chris Hohn, a prime mover in the fight to take over ABN Amro ...
See all stories on this topic

 

CDOs - Chernobyl decay obligations
In atomic science, radioactive decay is a measure of how long before it is safe to handle a piece of toxic waste. Half-lives, as they are called, can be anything from a couple of months to 760 million years for uranium 238. In CDO land, complete meltdowns can take less than a year. Or indeed, just a few days.
http://mail2.efnmail.co.uk/r/306702/MTk4MTI1OjE0NDY5/

 

Sub-prime collapse throws light on synthetics
The turmoil in the US sub-prime mortgage market has shone a spotlight on the more esoteric areas of the credit markets - and none more so than the world of synthetic collateralised debt obligations.
http://mail2.efnmail.co.uk/r/306641/MTk4MTI1OjE0NDY5/

 

US banks lead swing to LDI pension strategies
Politicians and pensioners are not the only people in the US taking an interest in the country's increasingly apparent pensions crisis. As companies try to come to terms with their pension scheme liabilities, more of them are calling in investment banks to help them.
http://mail2.efnmail.co.uk/r/306705/MTk4MTI1OjE0NDY5/

 

A third of funds hide their true volatility
The near collapse last month of two hedge funds run by Bear Stearns may have been spectacular, but a third of other managers trading in illiquid securities are running similar risks.
http://mail2.efnmail.co.uk/r/306646/MTk4MTI1OjE0NDY5/

 

Devil is in the daily detail for Paamco
Pacific Alternative Asset Management Company (Paamco) has set the bar for fund of hedge funds managers when it comes to monitoring and risk control.
http://mail2.efnmail.co.uk/r/306711/MTk4MTI1OjE0NDY5/

 

Transparency made GAM the clear winner
Financial News last week hosted the first awards for operational excellence in the European hedge fund industry. The awards recognise the teams that are seen as playing a supporting role to traders and investment decision-makers. Forty-four nominees were shortlisted in 12 categories, six for single-managers and six for funds of hedge funds. The winners were announced last Monday at a dinner at the Grosvenor House Hotel in London.
http://mail2.efnmail.co.uk/r/306725/MTk4MTI1OjE0NDY5/

 

Hedge fund settles Azerbaijan oil bribe case
Omega Advisor to pay fine, cooperate with on-going probe into alleged scheme to gain control of Central Asian state oil company.
07/06/07 02:08 PM, EDT
The U.S. government said Friday it had agreed not to prosecute Omega Advisors Inc., a $6 billion hedge fund, over its role in an alleged scheme to bribe Azeri officials and gain control of the Azerbaijan state oil company.
FULL STORY <http://money.cnn.com/2007/07/06/news/international/azeri_oil.reut/index.htm?section=money_email_alerts>

 

Garbage In, Carnage Out. 
Losses on securities tied to subprime loans could rival the $150 billion it cost to clean up the savings and loan mess in the early 1990s, Barron's reports.
http://online.barrons.com/article/SB118378035160459944.html?mod=djem_bwr

 

_________________________________________________________________________

Yield Curve Corner

 

Loved by Wall Street, Fed chief stumbles in DC
Asbury Park Press - Asbury Park,NJ,USA
Federal Reserve Chairman Ben S. Bernanke is a hero on Wall Street; the same isn't true in Washington. Sixteen months after succeeding Alan Greenspan, ...
See all stories on this topic

_________________________________________________________________________

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/FSHSnw190_G11.jpg

 

 * Strong earthquake strikes Mexico *
A 6.1 magnitude
earthquake rocks the poor southern Mexican state of Chiapas.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/americas/6275944.stm

 

Hurricane boss sticks fast amid staff flak
Palm Beach Post - FL, United States
"But we believed so strongly that Bill was not representing the best interests of the nation's hurricane warning program, that we decided to let our ...
See all stories on this topic

_________________________________________________________________________

Iranian Situation

Satellite pics indicate tunneling near Iran nuke site: think tank
AFP via Yahoo! News Mon, 09 Jul 2007 11:21 AM PDT
Commercial satellite imagery indicates Iran is tunneling into a mountain near its Natanz uranium enrichment complex, possibly to protect nuclear equipment against air attack, a US think tank reported Monday.

 

U.N. atomic chief: Iran progress slowing
AP via Yahoo! News Mon, 09 Jul 2007 6:23 AM PDT
Iran has significantly slowed work on its uranium enrichment program, the head of the U.N. atomic agency said Monday, interpreting the move as a signal that the country could be willing to resolve the standoff over its nuclear defiance.

 

Investment shortfall 'threatens Iran oil output'
AFP via Yahoo! News Mon, 09 Jul 2007 1:24 AM PDT
Iran's oil production capacity will fall by about five percent a year unless much-needed investment can be found, a top oil executive warned in an report on Monday.

 

IRAN:  Iran is ready to hold additional talks with the United
States to discuss Iraqi security and "did not reject the first
round of talks," Iranian President Mahmoud Ahmadinejad said. He
added that Iran is committed to unity in Iraq and ready to help
establish security and peace there.

_________________________________________________________________________

Avian Flu

 

Avian influenza  (Epidemic and Pandemic Alert and Response (EPR))
Avian influenza (Western Pacific Region)
Influenza and avian influenza (European Region)

Avian influenza (Fact Sheet)

Q&A: Avian influenza: am I at risk?

_________________________________________________________________________

Plansponsor.com

 

'PRIME TIMED?  Investors in one U.S. hedge fund have been blocked from
pulling out their money while another fund has been completely closed
- both victims of the crisis in the subprime mortgage market.  A Wall
Street Journal report said that Braddock Financial Corp. of Denver
sent letters to investors this week with notifications it was closing
its Galena Street Fund and suspending redemptions until it can sell
assets in the roughly $300 million fund. Galena mainly invests in
bonds backed by subprime mortgages extended to borrowers with poor
 credit.  According to the Journal, the fund held about $400 million
12 months ago. But it lost about $100 million as the value of
subprime-related investments dropped and investors began fleeing with
their money in hand, a Braddock official said.  Galena suspended
redemptions to "manage an orderly liquidation of the assets," the
letter said. Galena, launched in September 2002, posted cumulative
returns of 93% through January 2007.  MORE at
http://newsmail.plansponsor.com/cgi-bin1/DM/y/eBTDW0Tt3fc0CBD0Ijis0E7

 

Mellon Bank N.A. has agreed to purchase ABN AMRO's 50% share in ABN
AMRO Mellon Global Securities Services B.V., the joint venture company
established by the shareholders in 2003 to provide global custody and
related services to institutions outside North America.  The
transaction - which is subject to certain conditions, including
regulatory and other approvals - is expected to close during Q3 2007,
whereupon ABN AMRO Mellon will become a part of The Bank of New York
Mellon Corporation.  Nadine Chakar, CEO of ABN AMRO Mellon, will
retain her responsibilities as CEO of ABN AMRO Mellon in tandem with
her new role within The Bank of New York Mellon, where she will be
Head of EMEA for the BNY Mellon Asset Servicing group.  MORE at
http://newsmail.plansponsor.com/cgi-bin1/DM/y/eBTDW0Tt3fc0CBD0Ijiz0EF

 

SGAM Alternative Investments (SGAM AI) plans to launch a series of
Shariah-compliant index funds linked to Standard & Poor's Shariah
indexes. These funds will track the S&P US Shariah Index, S&P 350
Europe Shariah Index, S&P 500 Japan Shariah Index, S&P BRIC Shariah
Index, and S&P GCC Shariah Index. Their compliance with Shariah
principles is validated by Ratings Intelligence Partners, according to
a press release.  SGAM AI currently manages EUR 7.8 billion in index
funds and EUR 19.2 billion in structured products.  MORE at
http://newsmail.plansponsor.com/cgi-bin1/DM/y/eBTDW0Tt3fc0CBD0Iji10E1

 

If money were no object, Australia remains the vacation spot of choice
(outside the U.S.) for Americans, according to a new Harris poll (it's
held that slot for more than a decade now).  Italy was the second
choice, followed by Britain, France, Ireland, Germany, Japan, New
Zealand, Spain, and Greece.  Italy was the favorite for "echo boomers"
ages 18 to 30 and for college graduates. Britain was the top choice of
those over 62.

ON THIS DAY:  In 1877, the All England Croquet and Lawn Tennis Club
began its first lawn tennis tournament at Wimbledon, then an
outer-suburb of London. Twenty-one amateurs showed up to compete in
the Gentlemen's Singles tournament, the only event at the first
 Wimbledon.  In 1968, the first All-Star baseball game to be played
indoors took place at the Astrodome in Houston, Texas.  In 1983, the
Police's "Every Breath You Take" - the first single released from The
Police's Synchronicity album (which turned out to be their last) - hit
 #1.  In 1956, Dick Clark made his debut as host of "Bandstand" on a
Philadelphia TV station (it was changed to "American Bandstand" when
it went to ABC-TV).

MONDAY MUSING:  If 4 out of 5 people SUFFER from diarrhea...does that
mean that one enjoys it?

 

_________________________________________________________________________

Opalesque’s Corner

 

- Cincinnati puts 5% into long/short equity
- IXIS Asset Management US Group to acquire hedged equity specialist Gateway Investment Advisers
- Edwards urges rise in hedge-fund taxes, ECB`s Trichet reiterated calls for hedge funds` self- regulation code, Hong Kong Monetary Authority chief warns current regulatory framework may not be robust enough to remove systemic risks posed by hedge funds
- Hedge funds continue de-registration trend
- Global losses tied to subprime securities could reach $100bln, how ratings agencies turned junk `into gold`, squared CDOs to hold another time bomb, U.S. subprime saga `really a story of seven states`, with Californian district leads with 38% of mortgages subprime, further 33% in only slightly less risky, Hedge funds eye Mexico amid US subprime woes, Hedge-type fund buys distressed properties, resells them
- Opalesque Exclusive: GEM re-opens PharmaInvest Fund, NewSmith launches $100m European event-driven hedge fund, New French convertibles shop launches first fund
- PGGM to invest $200m in timber
- FIM Advisers expands investment and research teams, Harcourt appoints to new heads, Deutsche Bank appoints ING`s Chew Soon Gek as CIO for Asian private wealth management division
- The Case for Breaking up UBS:  Could double earnings multiple as pure play asset manager
- Haidar hedge-fund group to pay $4.58m in market timing settlement, NFA requests information from all parties ` ever transacted business` with Lake Shore, Omega fund to pay $500,000 settlement in link to bribery probe of Czech financier Viktor `Pirate of Prague`
- Powering algorithmic trading - Firm sets new benchmark with 200,000 calculations per second
- Browder`s $40m article: For corporate governance, humiliation pays off
- CME raises CBOT bid to $11 billion, Nymex seeks full OTC regulation for rival ICE, BNP Paribas takes 3% stake in Alternative Trading Platform Project Turquoise
- Background article: In London`s financial world, carbon trading is the new big thing
- 3 ex-Fidelity managers to open boutique firm in London
- Russian fund jumps 2% on Winter Olympic Games decision
- Singapore moves to draw in 4000 private bankers
- Offshore money gets bullish about Thailand stock market
- Abax fund already closed after spectacular $1 billion launch July 3rd
- France`s Societe Generale to set up Japan hedge fund management firm
- New Star Asset Management planning to close Japan hedge fund
- Tokyo mom and pop traders pass Chicago in Yen sales
- Update: Ex-Merrill economist Koll joins hedge fund Tantallon in Japan
- News Briefs: Hedge fund manager Daniel Shak gives poker prize to charity on opening day of World Series of Poker
- .And finally: Cat survives 3 weeks crossing ocean
- Logon: http://www.opalesque.com/main.php?act=archive

 

_________________________________________________________________________

Misc. Items of Interest

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

aborning uh-BOR-ning, adverb:

1. While being produced or born.
2. Being produced or born.

 

1942: Anne Frank and her family went into hiding in Amsterdam on this day in 1942 and lived in a secret annex—an experience documented in her diary, which became a classic of war literature—until their capture on August 4, 1944.

 

 1960: Launched this day was the Thresher, the first of a class of U.S. nuclear-powered attack submarines, which sank in 1963 in the worst submarine accident in history.

 

 1850: Zachary Taylor, 12th president of the United States, died only 16 months after taking office.

 

 1828: American portrait painter Gilbert Stuart died in Boston.

 

 1762: Catherine II overthrew Peter III and began her reign as empress of Russia.

 

 1755: General Edward Braddock's British army was thoroughly defeated in the Battle of the Monongahela during the French and Indian War.

 

 1540: The marriage of King Henry VIII of England and his fourth wife, Anne of Cleves, was annulled.

_________________________________________________________________________

Conference, Courses, Books, Papers

 

How I Became A Quant Authors Lindsey, Richard R.; Schachter, Barry; Date July 2007 Category Popular Reading
Click above to see all GloriaMundi resources from these categories Abstract Firsthand accounts from the people who were swept into, and then helped fashion, today's "quant-driven," dynamic world of finance
Quants are the backbone of today's investment industry. Their mathematical models are now the basis for most financial market innovations, such as exotic derivatives, structured investment products, quantitative trading strategies, and portfolio selection. Their spectacular successes and failures have become part of market folklore. But what they do, and how they do it, is often as opaque and hard to understand as the formulas they create. In How I Became a Quant, more than two dozen quants tell their war stories and detail the unexpected paths they have followed from the halls of academia to Wall Street, revealing the faces behind the quant revolution.
Richard R. Lindsey, PhD, MBA (New York, NY) is President of Bear, Stearns Securities Corporation. He is chair of the executive board of the IAFE. Barry Schachter, PhD (New York, NY) is Director of Quantitative Resources at Moore Capital Management. He is on the advisory board of the IAFE. Links view complete description on GloriaMundi
go to resource website

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:

 

_________________________________________________________________________

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

_________________________________________________________________________

Regulatory Info

 

 

_________________________________________________________________________

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.