Main News

 

The Moral Hazard of Subprime Risk
Seeking Alpha - New York,NY,USA
If you know anything about the subprime mortgage crisis, know this: the hundreds of billions of dollars in losses incurred by banks, investors, ...
See all stories on this topic

 

Credit Woes Hinting at Consumer Recession
U.S. News & World Report - Washington,DC,USA
What's more, when Federal Reserve Chairman Ben Bernanke was asked at a congressional hearing last week whether the Treasury Department's bank-bailout plan ...
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Recession fears grow as inventories swell
Reuters - USA
Federal Reserve Chairman Ben Bernanke warned last week that economic growth would slow from the third quarter's surprisingly strong 3.9 percent annual rate. ...
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NEW YORK (HedgeWorld.com)—Nassim Nicholas Taleb, the author of Fooled by Randomness (2001) and The Black Swan (2007) is at the forefront of an effort to dethrone the Black-Scholes-Merton formula from its centrality in contemporary quantitative finance—and to change the name of it in the process. ......

 

Goldman Held Bigger Share of Level 3 Assets Than Citi, Merrill
Bloomberg - Monday November 12, 09:52 GMT

 

A dozen Wall Street firms have decided to drop their competing trading systems for the unregistered securities known as 144a offerings and cooperate on a single platform operated by Nasdaq Stock Market. The decision, expected to be announced today, will revamp Nasdaq's Portal system, using some of the technology the investment banks have incorporated in their own systems. The result of nearly two months of negotiations, the new trading platform should be operational in the first quarter.
http://online.wsj.com/article/SB119483826639089778.html?mod=djemalert

 

New Study Explores Impact of Institutional Relationships on Hedge Fund Performance
Source: Yahoo! Finance
A new research study indicates with empirical data that hedge funds receiving both seeding and operational support from a larger investment organization or service provider tend to outperform the broader hedge fund universe on a risk-adjusted basis. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Goldman Sachs reportedly cutting exposure to emerging markets
Source: MarketWatch
Goldman Sachs Group Inc. is reducing its exposure to emerging markets as turmoil in global credit markets risks triggers a correction in Latin America, Eastern Europe and parts of Asia, the Daily Telegraph reported on its Web site Sunday. More... <http://www.hedgefund-index.com/newsemerging.asp>

 

Focus on transparency and liquidity sets GAM apart from the crowd
. FUND OF HEDGE FUNDS GROUP OF THE YEAR  GAM UBP EIM
http://mail2.efnmail.co.uk/r/323466/MTk4MTI1OjE1NjE5/

 

Hedge fund manager Louis Bacon registered a 31% fall in turnover for his UK management company in 2006 but the firm’s ...
eFinancial News Sun, 11 Nov 2007 9:15 PM PST
Hedge fund manager Louis Bacon registered a 31% fall in turnover for his UK management company in 2006 but the firm’s £147m (€210m) fee income meant it was still one of the largest in Europe.

A single hedge fund has made a gain of more than $3bn (€2bn) at the expense of investment banks by betting on the ...
eFinancial News Sun, 11 Nov 2007 9:15 PM PST
A single hedge fund has made a gain of more than $3bn (€2bn) at the expense of investment banks by betting on the sub-prime crisis.

 

 

Bloomberg - USAThe collapse of the subprime mortgage market derailed the careers of Merrill Chief Executive Officer Stan O'Neal, Citigroup's Charles O. ``Chuck'' Prince ...

Investors Flee E*Trade; Will Depositors Follow?
New York Times - United States
E*Trade is just one of many financial companies to be stung by the rapid deterioration of the subprime mortgage market. But its relatively small size, ...
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Blackstone hampered by IPO charges

The private-equity firm swung to a third-quarter loss on IPO charges as the global credit crisis dampens buyout deals. 
» Read the Full Story

 

More Fodder for Volatility Ahead
Investors hope inflation and retail data will offer relief. Read More

 

Fri, 09 Nov 2007, 10:51

Institutional Investor/Hedge Fund Daily
It's IP-no for AQR Capital Management, at least for the time being. The Greenwich, Conn.-based hedge fund formed by Cliff Asness, a former trader at Goldman Sachs, was planning an initial public offering, the New York Post reports, but that float is now in dry dock. Poor performance of its flagship AQR Absolute Return Fund resulted in a number of big investors jumping ship with their money. According to NYPost, the computer-driven fund fell 3% in October, leaving it down 6% for the year; in contrast, the Standard & Poor's 500 has gained 4% so far.

 

Kapito most likely to succeed Fink <http://e.ccialerts.com/a/hBHOGn5AMtqiZAMuTGFAWyfiTOd/in13> 
NEW YORK - If BlackRock Inc. Chairman and Chief Executive Laurence D. Fink becomes the next CEO of Merrill Lynch & Co., the board of directors for the world's largest publicly traded asset management ...

 

Growth of 130/30 may boost transparency in securities lending fees <http://e.ccialerts.com/a/hBHOGn5AMtqiZAMuTGFAWyfiTOd/in44>

 

NEW YORK (HedgeWorld.com)—Despite the growing popularity of 130/30 strategies, this market remains in its infancy and is likely to change in radical ways over the next few years. ......

 

Northern <http://e.ccialerts.com/a/hBHOGn5AMtqiZAMuTGFAWyfiTOd/in48> 's star: Face to Face with Frederick Waddell
Frederick "Rick" Waddell admittedly wears a lot of hats for Northern Trust Corp. He's the current president and chief operating officer of the Chicago-based banking company, as well as the acting...

 

Friday , 09 Nov 2007
On how gold bullion set a new all-time high on Wednesday, and tips on how to play Beta with big gold stocks.

 

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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:

 

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Iranian Situation

 

Iraq, Iran: Prelude to a Pipeline
 http://www.stratfor.com/products/premium/read_article.php?id=298159

 

 

Scores hurt as Iran militia clashes with Sufis: report
AFP via Yahoo! News Mon, 12 Nov 2007 2:12 AM PST
Scores of people were injured and more than 100 arrested when security forces stormed a Sufi lodge in western Iran after clashes between the Muslim mystics and Shiite worshippers, the Jomhuri Eslami newspaper reported on Monday.

 

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Opalesque’s Corner

 

- Thames River markets property L/S equity fund,  The ROCIM Asia Opportunity Fund launches in Hong Kong with a long/short equity focus, up 21%, Hawaiian shop launches Japanese long-biased fund, Tuscan launches offshore version of hedge fund
- Opalesque Exclusive: Millennium tells Opalesque new Decade hedge fund fully funded and owned by Millennium, not set up `to get funding from outside investors`
- Opalesque Exclusive: Exploring the FoHFs universe (part 6) - why larger or niche FoFs will prevail in the FoFs industry, new launch of second India-focused FoFs at RAS
- London and Tel Aviv-based Pamplona Capital Management expands: new members in FoHFs team, new single strategy hedge fund, new real estate and infrastructure FoHFs, new office in Switzerland
- Opalesque Exclusive: Harbert distressed fund up 100% YTD after record 21.21% (est.) October return, Paulson makes $3 billion from subprime bet, Hedge funds rose 3.2% in October on stock, debt bets, Pequot and Passport gain
- Man Group profit rises on 11% gain in client assets, Man Group set to return $2.75bn to shareholders after MF Global listing,  Man CEO says firm withstands turmoil in H2
- Principal Global Investors may move into alternatives, Asset allocation at UBS Wealth Management, tailored alternative portfolios, real estate and hedge fund allocations to be kept at same level
- Update: Och-Ziff`s public debut could face a tough reception on Tuesday, Value Partners` institutional IPO to close today, London IPOs stay near 2006 pace, so far
- Report from NYC`s 130/30 conference: Quant may no longer dominate, 130/30s still in early days, Comment - 130/30 quant vs. fundamental: Quants have a bigger spice cabinet
- ETFs` Holy Grail: active management - many semi-active ETFs have already arrived on the market, Claymore launches first U.S.-listed global timber ETF, New ETF lets investors profit if China`s stock market tumbles
- Taleb and Gaarder Haug`s paper on the Black-Scholes-Merton Option Pricing Formula: `It is time to stop calling the formula by the wrong name`
- Balestra`s Jim Melcher talks of worst recession since the 1930s
- Other Voices: Salus Alpha Capital says US-$ to become funding currency instead of an investment currency, EUR/USD target 1,80
- People: Caliburn Capital Partners LLP announces new operational due diligence appointments, Robert Kaplan named interim CEO of Harvard Endowment firm
- Pensions: CalPERS investment chief sees the vital importance of energy and commodities, is big on new energy technologies, Allianz Global Investors says pension reform across Asia-Pacific region is driving dramatic growth in assets
- Regulators: Ontario Securities Commission says money managers misrepresent performance in marketing material, Comment: Practices getting more sound - MFA getting there, slowly, DFSA and Financial Services Agency of Japan agree terms of co-operation
- Indices: Greenwich Global Hedge Fund Index: Hedge funds up +3.01% in October; +12.39% YTD, return strongest since 2003, BNP Paribas launched the Commodity Market Representative Index (CMRI) designed as a new generation of commodity indices, Ocean Tomo 300 Patent Index outperforms S&P 500 by more than 1,000 bp in first year
- Banks said to agree on credit backup fund, Superfund`s proposal has been revised, simplified, ECB to continue providing emergency help
- John Mauldin comment: Credit crisis to credit crunch, Roubini`s Level-3 ratios of banks raise concerns
- Citi can still deliver on its unrealized promise, Fitch may cut Citi`s Sedna-managed SIV notes, City troubleshooter Luqman Arnold planning to rescue stricken Northern Rock, Wachovia, Capital One report losses, BoA, JPMorgan expect poor 4Q results, HSBC`s results might show what could be in store for U.S. mortgage lenders, Barclays slides as much as 9.1% on writedown concern,  Barclays`s del Missier takes over credit trading,  Barclays denies $10bn rumour as shares slide
- The decline and fall of fixed income - a recap, Widespread changes to leveraged credit markets predicted in Financial News research
- Brain impulses provide spark for our investments, brain scan shows
- FT comment: A role for new actors in the global economy, on the increase in cross-border investments
- Legal News: Web scammer targets U.S. executives, cybercrime grows into global threat, Bear Stearns appeals Chapter 15 ruling
- Exchanges: NYMEX Holdings acquires 15.1% of Norwegian derivatives exchange IMAREX,  Brazil`s BM&F Futures Exchange may raise $2.2bln via IPO
- Investors set to feel the heat, UK Royal Meteorological Society says sea ice lost faster than models predicted
- Commodities: Investors seek refuge in gold, Cogo Wolf Global Strategy FoHFs prefers HFs to gold ETFs, Mulvaney up double digits in October through precious metals and commodity currencies, Thorium, the answer to the question `how do you hedge uranium?`, Beijing holds on to its resources
- Tax Update: U.S. House of Representatives passes tax rise on hedge-fund, buyout managers
- Hedge funds to get green light in Russia as soon as next year
- Goldman cuts emerging markets exposure
- Sail reassures Korean investors: investment in hedge funds a safe, rewarding bet
- Hong Kong millionaire growth ahead of Singapore, Merrill report says investors should stay loyal to Hong Kong shares
- India controls the tide of foreign hedge funds, investors might consider re-jiggering their Indian holdings
- Tech Update: PerTrac adds HedgeFund Intelligence databases to analytical platform, Thomson Financial releases hedge fund tool
- Comment: Caution in the art market, Warhol, Koons, Hirst top dealer Feigen`s list of overpriced art: collectors `may walk away`
- Activist News: Ramius Capital files preliminary proxy materials to elect 4 nominees to board of directors of A. Schulman, Inc.
- News Briefs: Morgan Stanley`s Mack taps Cruz as successor,  Symetra postpones IPO, a setback for Buffett, hedge fund backers, UK house prices fall for second month, Deutsche Boerse plans up to 200 job cuts, Gibraltar gains ground in hedge fund industry, UAE banks likely to escape US crisis,  Iran, Pakistan finalise gas exports contract
- And Finally. It`s official: you don't have to live in France
- 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….

 

gesticulate juh-STIK-yuh-layt, intransitive verb:

1. To make gestures or motions, especially while speaking or instead of speaking.
2. To indicate or express by gestures.

 

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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.