Main News

 

In August Crisis, Quants Good, Risk Models Bad

NEW YORK (HedgeWorld.com)—All quantitative models should not be lumped together just because some failed spectacularly during the first half of August, said Raphael Douady, founder and head of research at Riskdata, a Paris-based firm that provides risk management software for the hedge fund industry. ......

 

Tue, 06 Nov 2007, 06:50

International Herald Tribune/Bloomberg
The hedge fund industry is grappling with its first shakeout in a decade as investors increasingly recoil from start-ups considered susceptible to the toxic shocks of credit markets this year. New hedge funds are opening at the slowest pace since 2003, with almost all of the USD164 billion in new investments going to managers with proven records, data compiled by Hedge Fund Research show.

 

Tue, 23 Oct 2007, 17:53

HedgeWeek

Managers with illiquid or hard-to-value fixed income securities in their portfolios can now use independent evaluations from Standard & Poor's Securities Evaluations (SPSE), a wholly owned subsidiary of The McGraw-Hill Companies, Inc.

 

Mon, 05 Nov 2007, 19:17

DealBook/New York Times

Scanning the headlines on Monday reveals a blizzard of articles on Citigroup, IAC/InterActiveCorp and PetroChina. Decidedly less obvious is the fact that another hedge fund has gone public in the United States — even though it rang the opening bell Monday morning. That would be GLG Partners, a British hedge fund spun off from Lehman Brothers in 2000. And so far, the markets have been mostly cool to its debut: after some choppiness, its stock was trading at USD13.83 in mid-afternoon trading Monday.

 

Winton Capital, one of the largest hedge fund managers in the UK, recorded an 83% increase in turnover to £92m (€132m) ..
eFinancial News Tue, 06 Nov 2007 3:59 AM PST
Winton Capital, one of the largest hedge fund managers in the UK, recorded an 83% increase in turnover to £92m (€132m) last year after doubling its assets under management for the third year in a row.

 

W. C. Fields' Cure for the Credit Crunch
Credit conditions keep getting tighter, Fed survey shows, except in Philly.
http://online.barrons.com/article/SB119430123320283095.html?mod=djemBF

 

Wall Street firms see recession nearing
November 06, 2007 08:31 AM ET
NEW YORK (Reuters) - The economy might be edging toward a recession
in the wake of mortgage-related credit woes plaguing the financial
markets, bankers and analysts said on Monday.
http://links.reuters.com/r/5Y3GW/HNW77/D6AKH/77195/N0Y8T/YT/t

 

Reputational risk online
A new roundable on governance, risk and compliance that explores implementation challenges and potential benefits from integration
Compliance Tools...

 

Ramius Steps up Cafeteria Battle
Dealscape - Tuesday November 06, 09:44 GMT

 

Soros Forecasts Very Serious Economic Correction
The Age - Tuesday November 06, 07:38 GMT

 

Wow! Buffett's Profit Surges 64 Percent!
Bloomberg - Monday November 05, 11:57 GMT

 

China's bright lights may fade. While the nation is producing billions of tons of coal to feed an economy that is growing at 10 percent annually, the ancient civilization is getting overrun with pollutants that threaten all of its gains.

Full Story...

 

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Yield Curve Corner

 

Central bankers see more pain for U.S. economy
November 06, 2007 08:32 AM ET
LONDON (Reuters) - Central bankers past and present warned on
Tuesday of more pain to come for the U.S. economy and that banks
worldwide could take several months yet to reveal full losses
from U.S. subprime mortgage lending.
http://links.reuters.com/r/5Y3GW/HNW77/D6AKH/77195/JGWTJ/YT/t

 

Greenspan, King see more pain for banks, U.S.
November 06, 2007 05:26 AM ET
LONDON (Reuters) - Central bankers past and present warned on
Tuesday of more pain to come for the U.S. economy and that banks
worldwide could take several months yet to reveal their full
losses from U.S. subprime mortgage lending.
http://links.reuters.com/r/BJHVE/S6RYF/JAW90/VHIVE/9F0M6/YT/t

 

The Long Climb -- Part II
Barron's - USA
An overwhelming 87% applaud Fed Chief Ben Bernanke and his colleagues for lowering the discount rate -- the rate the central bank charges to banks and other ...
See all stories on this topic

 

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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:

 

Mudslide adds to Mexico flood woe *
A mudslide strikes a village in flood-hit southern Mexico leaving at least 16 people missing feared dead.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/americas/7080156.stm

 

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Iranian Situation

 

U.S.: Releasing Iranian Detainees to Clear the Way for Talks?
 http://www.stratfor.com/products/premium/read_article.php?id=297846

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Opalesque’s Corner

 

- Opalesque Exclusive: Matrix Fonder AB is launching Swedens first Portable Alpha Fund, Opalesque Exclusive: Templar Group and Pierre-Noël Formigé set up Geneva branch, launch new multi manager fund
- Jabre is raising a second hedge fund with a bias to mid-cap European companies, CAAM mixes strategies to deliver alpha gem
- Higher returns lift CQS turnover by 40% to $165mln, Monsoon`s $1.2 billion hedge fund returned estimated 21.9% last month, Troubled manager Basis Capital records small improvement in one of its suspended funds, Griffith to save Odey` Japan fund, Niederhoffer protégés gorge ahead with new funds despite Matador Fund blowup
- Update: Swiss FoFs manager Gottex hopes to raise SFr700m in IPO, HarbourVest latest in search for permanent capital, GLG traded 2.3 million shares yesterday, $1 billion raised by ex-Citigroup banker to buy stakes in hedge fund and PE firms
- Vienna listed investable alternatives index up 18.5% October, 37.89% YTD, MSCI Global Value and Growth indices November 2007 semi-annual index review, STOXX launches blue-chip index for the Balkans
- Managed Funds Association (MFA) leaders call for improved sound practices by hedge fund managers in updated Guide,  Hedge fund trade group calls for more due diligence, better valuation, but doesn`t offer `recipe` for asset-backed securities, What`s so hard to value about CDOs anyway?
- Georgetown University breaks $1bln, hedge fund exposure up
- Comment: `People are spooked`.so let's invest in big hedge funds. Is there really a flight to quality?, Jim Rogers calls Bernanke `a nut` over rate cuts, warns of `terrible problems`, Jim Rogers says U.S. enduring worst `credit bubble`,  Soros sees `serious` economic correction
- People: AIMA seeks a research manager, Fund of funds manager expands in Japan and Brazil, hires two reps, Barings appoints James Calder as head of multi-manager, BNP Paribas expands hedge fund relationship team globally, hires in NYC and in HK , Man Investments appoints Daphne van der Oord to Institutional team, F&C`s European manager Davina Curling leaves, replaced by Peter Jarvis, TCU endowment appoints alternatives chief for $1.2 billion endowment
- Pensions: Plymouth seeking to invest $10 million in 130/30, Swiss pensions return 3.5% in H1, New Mexico commits $100 mil to hedge, PE funds
- Legal News: Busy lawyers are dealing with increasing claims against smaller hedge funds, www.sentinel-dirt.com, Principals of Seaforth Meridian hedge fund ordered to pay back money obtained by fraud
- Update: Merrill might buy Fink`s $400m stake in BlackRock to lure him to chairman position, Analyst cuts Merrill Lynch price target, expects it to take additional write-downs, Citigroup names Stuckey to run subprime group after writedowns, Researcher forecasts higher mortgage default rates, Banks bleed all over the dance floor, Investors see more subprime pain from Europe banks, Pressure on UK financial sector to detail its exposure to crisis
- Tax update: `Carried interest` tax unlikely to rise in 2007, but proposal which would limit ability to defer tax by holding money offshore may pass, Billionaire Buffett said he ought to pay more taxes, took a shot at HF managers, Opinion: Bill would shift burden, complicate taxes,  Paygo budget rules push IRS to look for revenue from hedge funds and HNWI,London: the unlikeliest of tax havens
- Regulators: Update: CFTC asks Congress to give it more power to police energy derivative trades, SEC looks to allow tombstone ads for private offerings, HFs can use operating company, SEC`s latest step to making public filings available electronically
- Exchanges: BATS files with SEC to become exchange, ASX ponders merging with other bourses
- Carbon Trading: Carbon traders create cheap credits in China for sale in Europe, China`s paradox, knows that it must become a leader in nuclear and renewable sources, First-ever carbon trading deal signed in Singapore
- March 2008 CAIA exams - Early registration deadline: Nov 12, 2007, EDHEC Alternative Investment Days, London, November 20-21, 2007
- Most German, Swiss and Austrian IR professionals want hedge fund transparency
- Rubicon HF crosses into negative territory, 65% fall in turnover, Caliber Global stock sinks another 58% on RMBS worries
- IDS Group with R40bn in assets under administration in South Africa, over 130 single and FoFs
- BRIC markets: Capacity to increase substantially
- Van Eik ratings agency cautions Australian investors, now is time to hedge market risk
- Tech Update: Imagine Software expands into South American market with Nitor Investments, Phoenix announces formation of fund services for middle market investors
- Activist News: Ramius Capital says Luby`s board not working, ArcelorMittal`s merger approved, hedge funds and shareholders to file lawsuit against company, Delphi creditors dispute restructuring rewrite
- News Briefs: Declaration of principles to be issued at the third OPEC summit, Survey: Growing use of derivatives and financial modeling spurring demand for graduate training in financial mathematics, UK Chancellor wants IMF to become world watchdog, Guernsey investment manager launches Serbian property fund, Julius Baer restructure combines European asset management, private bank operations, Banks with Islamic services set for growth
- And Finally. Reverend shows that crime pays, but not for the criminal
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

 

Australian researchers find hunger switch
November 05, 2007 09:15 PM ET
SYDNEY (Reuters) - Australian scientists have found how to switch
hunger on and off using a molecule that targets the brain --
a discovery which could stop weight loss in terminally ill patients
or produce weight loss in the morbidly obese.
http://links.reuters.com/r/BJHVE/S6RYF/JAW90/VHIVE/HH5EK/YT/t

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Funnies, Facts, Quotes, etc….

 

bete noire et-NWAHR, noun:

Something or someone particularly detested or avoided; a bugbear.

 

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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.