Main News

 

Bank of China Profit Growth Trails Rivals on Subprime (Update1)
Bloomberg - USA
... posting the slowest earnings growth among the nation's largest lenders after a $322 million loss on US subprime mortgage investments. ...
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Bloomberg - USAArtist Richard Prince, who has three works in the November evening sales and is a favorite of hedge-fund managers Steven Cohen and David Ganek, ...

A former hedge fund manager finds life after prison
International Herald Tribune - France
Sandwiched in all that were the convictions of hedge fund managers like Smirlock, as well as the crash and bailout of the hedge fund Long-Term Capital ...
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Paulson Hedge Funds Cut Subprime-Mortgage Bets, Extend Gains
Bloomberg - USA
The fallout has forced the shutdown of hedge funds run by New York-based Bear Stearns Cos. and Basis Capital Fund Management Ltd. in Sydney. ...
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Professor Robert F. Whitelaw of NYU Stern Details Method for Replicating Hedge Fund Returns Using Exchange-Traded Funds
Business Wire via Yahoo! Finance Thu, 01 Nov 2007 7:15 AM PDT
NEW YORK----Professor Robert F. Whitelaw of New York University's Stern School of Business and Chief Investment Strategist for IndexIQ, the leading developer of Rules-Based Alpha™ investment products, addressed the Hedge Fund Replication & Alternative Beta Conference in New York on Monday, and detailed a method for replicating hedge fund returns using Exchange-Traded Funds as underlying ...

 

European Economic Forecast: Europe's Central Banks Weigh Inflation Against The Fallout From The U.S. Slowdown
In setting monetary policy across Europe, the region's central banks continue to wrestle with the risk of a slowdown in economic growth against that of higher inflation. The downturn in the U.S. economy, the sharp rise in the exchange rates of the British pound sterling and the euro against the U.S. dollar, and the easing in housing markets can potentially curtail growth. At the same time, higher oil and commodity prices point to an acceleration in headline inflation across Europe.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYUUUQTVsLgHxhilpuHQJhuV2VR

 

Dubai Financial Doubles Stake in Marfin
The Independent - Thursday November 01, 09:49 GMT

 

an Sachrosanct
Financial Times - Thursday November 01, 09:41 GMT

 

Has Warren Buffett Lost His Mind?
The Guardian - Thursday November 01, 07:19 GMT

 

UK – Liverpool City Council has voted unanimously in favour of pulling its pension fund out of arms investments - the first time a UK council has passed such a resolution.

 

Pension companies double hedge fund investment
http://www.ipe.com/news/Pension_companies_double_hedge_fund_investment_25832.php

 

State Street sued over sub-prime saga
http://www.ipe.com/news/State_Street_sued_over_sub_prime_saga_25831.php

 

CASAM hedges fund data
http://www.ipe.com/news/CASAM_hedges_fund_data_25810.php

 

$100 a Barrel, Here We Come
Crude oil's march toward $100 a barrel seems unstoppable, as futures prices broke through $96 a barrel today. Read More

 

Market-Based Option Valuation Gets OK
The new method is finally approved, but some doubt that many companies will be eager to use it.

 

Spooking Investors (The Economist)
Financial markets remain on edge because the credit crunch has not been solved.

Curing SIV (The Economist)
A bail-out fund raises more questions than answers.

 

Deutsche Quants to Offer ‘Uncorrelated Global Alpha'

GENEVA (HedgeWorld.com)—Executives from the Deutsche Asset Management (DeAM) quantitative team were in Geneva Wednesday [Oct. 31] for the launch of the firm's latest global macro offering, DB Global Alpha Strategies. ......

 

Weakness of quant trading? Beware of hedge fund geeks bearing greeks? Some models don't work therefore ALL models don't work? It is curious how fear and hyperbole lead to unjustified generalizations. Semantic pigeon holing is a common response to the unfamiliar. Presumably that's why some think quants are in a quandary, derivatives are dangerous and leverage is lunacy. Black box systems are "secret" and ALL the same(!) so better to stay with "human" methods of making money? There are far more bad qualitative fund managers than bad quantitative systems so be wary of the QUALS and the QUANTS.

 

The Federal Reserve Bank of New York released a report yesterday – “New Directions for Understanding Systemic Risk” - that presents key findings from a cross-disciplinary conference that it cosponsored in May 2006 with the National Academy of Sciences’ Board on Mathematical Sciences and Their Applications.

Since the Committee's previous meeting in July, credit conditions have become more challenging and the outlook for the economy has turned less certain. Economic growth this summer withstood the re-pricing of risk in some segments of the financial markets.

 

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Yield Curve Corner

 

UP AND DOWN WALL STREET DAILY  By RANDALL W. FORSYTH
Why Do Stocks Love Ben More Than Bonds?
The divergent reactions of stocks, bonds and currencies to the Fed's rate decision may be telling.
http://online.barrons.com/article/SB119386507084578105.html?mod=djemBF

 

Short positions seen
Business Standard - Mumbai,Maharashtra,India
The markets saluted Bernanke's rate-cut move with a gap-up opening. The Nifty surpassed the 6000 level, while the Sensex made a new high of 20200. ...

 

Fed's Bernanke to testify before Congress Nov. 8
Reuters - USA
WASHINGTON, Oct 31 (Reuters) - Federal Reserve Chairman Ben Bernanke will testify before the congressional Joint Economic Committee at a hearing on the US ...
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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/TRCnoel305_G12.jpg

Storm warning in Florida as Noel edges northward
Reuters UK - UK
... to the Florida coast," hurricane expert Jack Beven at the US National Hurricane Center wrote in a report. "Thus a tropical storm warning is being issued ...
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Floodwaters swamp Mexican state *
Floods set off by days of heavy rain cover much of Mexico's Tabasco state, forcing thousands from their homes.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/americas/7072554.stm

 

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Iranian Situation

 

Iran-Iraq border trade heavy but no weapons found
Reuters via Yahoo! News Thu, 01 Nov 2007 11:53 AM PDT
Business is booming on the Iran-Iraq border. Despite a war in one country and Western sanctions against the other's nuclear program, trucks full of everything from fresh produce to furniture and clothes to consumer electronics trundle to the 1,400 km (900 mile) frontier every day.

 

Essar Backs Off On Iran
Forbes Thu, 01 Nov 2007 12:06 PM PDT
Says it won't invest in Iran without permission from the United States.

 

Gulf Arabs offer to provide uranium to Iran: report
Reuters via Yahoo! News Thu, 01 Nov 2007 9:37 AM PDT
U.S.-allied Gulf Arab states are willing to set up a body to provide enriched uranium to Iran to defuse Tehran's stand-off with the West over its nuclear plan, Saudi Arabia's foreign minister told a magazine on Thursday.

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Opalesque’s Corner

 

- Opalesque Exclusive: FrontPoint Multi Strategy fund up 18.20% YTD, September up 2.01%, all months positive in 2007, has `all eyes on U.S. labor market` to gauge recession risk
- Citigroup buys fixed-income hedge fund Carlton Hill, to become strategic investment center, Australian fund manager HFA to finally buy Lighthouse Partners; seeks $258m with issues, Investcorp and Washington Corner Capital Management announce strategic partnership
- PE firms now get their loans from hedge fund land
- Sands Brothers launches strategic and opportunistic asset-backed and secured loans fund Genesis Merchant Partners, Barclays Capital announces note linked to fund of hedge funds, to be managed by Optimal, New launch of the Arrow Alternative Solutions Fund: ` the best of the mutual fund and hedge fund worlds`
- Hedge Fund Administrator Survey: single-manager assets under administration reached record $2.5 trillion
- Street Global Advisors win GBP330m Global Equity 130/30 mandate for BAA pension,  UK`s Kingfisher to search 130/30 manager under new pensions head
- Pensions: Welsh GBP50m currency brief awarded, Employees Retirement System may invest in alternatives
- Jim Rogers shorts Wall Street do to excesses and bad papers
- Absolute Capital Management`s fund restructuring approved
- Comment: Fed cuts rates, little inclination to move further on interest rates, Investors get clear message from Fed: no easing cycle, Bank of Japan keeps rates on hold at 0.5%, lowers forecasts for growth and inflation
- IRS probes hedge funds, buyout firms for possible tax abuses,  Investment industry in US tax dog-fight, `far from over` says lobbyist
- Merrill hit with shareholder lawsuit over subprime, No apparent successor to O`Neil, Two Citi executives sacked over credit turmoil, Bear CEO`s handling of crisis raises issues, Aladdin`s Ottimo conduit forced to sell nearly $3 bill of MBS, may push some bond prices lower
- Banks are again packaging loans into CLOs to satisfy investors
- Commodities: Comment: Investing in gold need not cost HF fees, Gold nears $800 an ounce after Fed rate cut, there could be some bumps ahead
- CALPERS posts public letter on `necessary corporate disclosure of information related to climate change`, says voluntary disclosure is insufficient
- Exchanges: Nasdaq front-runner to buy Phila. Exchange, Mergers will increase European access to the US options market
- CASAM launches hedge fund data source
- S&P report says managing exposures to hedge funds and leveraged vehicles may be testing but manageable for most leading players, Investors try to keep up with rush of downgrades, many of which took the CDO securities from investment grade directly to high-yield, New Schmidt ratings for Signet funds GFI, GFI 2, GFIS and Emerging Opportunities
- FSA crackdown on rogue HFs is unlikely to succeed although HFs should follow basic rules
- Bahrain `poised to become funds hub`, says Citigroup
- Leveraged transactions come to China: How foreign buyers can use leverage when taking over a listed Chinese company
- Report: is Singapore becoming uncompetitive for foreign business?
- Activist News: Update: Generali `vindicated by results`, York Capital Fund joins bidding for Hungary`s rail-freight unit, Luby fires back at Ramius
- News Briefs:
- And Finally… Chinese marriage brokers banned from issuing seductive ads
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

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Funnies, Facts, Quotes, etc….

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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.