Main News

 

Funds of funds win performance-wise -- [at FT.com]
By Simon Hildrey FT.com
11/19/2007 5:05:08 AM

 

CERBERUS SUED OVER TURNING TAIL ON DEAL
 By ZACHERY KOUWE
Wall Street dealmakers are fuming over secretive hedge fund manager Stephen Feinberg's decision to walk away from his $7 billion deal to buy United Rentals and are threatening to stop doing business with his firm.  United Rentals, the nation&#39...
http://www.nypost.com/seven/11202007/business/cerberus_sued_over_turning_tail_on_deal_423443.htm

 

Tue, 20 Nov 2007, 01:29

Wall Street Journal
Eric Mindich's $10 billion Eton Park Capital Management LP is acquiring the portfolio of debt-oriented hedge fund R6 Capital Management and hiring the firm's executives. The move is the latest sign of how hard it is for smaller hedge funds to expand, even those started by investors with top-notch pedigrees that have held up in a challenging market.

 

Residential Mortgage-Backed Securities
Fifty-Nine U.S. Closed-End Second-Lien RMBS Ratings Lowered To 'D' After Classes Default
On Nov. 19, 2007, we lowered our ratings to 'D' on 59 classes from 55 U.S. closed-end second-lien mortgage loan transactions. The downgrades reflect the complete erosion of the credit support for the affected classes and the subsequent write-downs for each class. We lowered 57 ratings to 'D' from 'CCC', one to 'D' from 'BB-', and one to 'D' from 'B'.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYAUTQUVsLgHxhilpuHQJhuV2VSW

 

Enterprise Risk Management: North American Insurers And Reinsurers In Line With Global Trends
Through October 2007, the distribution of our 125 enterprise risk management (ERM) quality opinions of insurers headquartered in North America and Bermuda was as follows: 5% excellent, 8% strong, 84% adequate, and 3% weak. This is similar to the results of global levels of ERM assessments: through December 2006, the distribution globally was 3% excellent, 11% strong, 81% adequate, and 5% weak. Thus far, there has been only limited movement from any one category to another, and we anticipate this will be a fairly consistent trend in the remainder of 2007.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYAUTQUVsLgHxhilpuHQJhuV2VSB

 

Derivative Lawsuit Filed Against Bear Stearns Over CDOs
CNNMoney.com - USA
"Due to increasing delinquency among subprime mortgage borrowers and the impending subprime mortgage crisis, these actions were reckless," the lawsuit says. ...
See all stories on this topic

 

HSBC USA chief says credit fallout far from over

Paul Lawrence, whose bank has been one of the largest players in the subprime arena, said it will take a long time to fix the industry. 
» Read the Full Story

 

Mon, 19 Nov 2007, 13:02

Seeking Alpha
Goldman has raised $4.5 billion for two new hedge funds. One of these is a credit hedge fund called Liberty Harbor that raised $2.7 billion. The other, GS Liquidity Partners, had $1.8 billion raised for it, and will make investments in distressed credit. On top of these two funds which have already been fundraised for, Goldman is planning to launch yet another long/short equity fund in the next few months. Goldman has brilliantly moved Raanan Agus from his position as head of the principal strategies group in New York to run this new fund.

 

Risky Business: Dollar Losing Status As Reserve Currency
Thomson Investment Management News - Tuesday November 20, 08:16 GMT

 

Radioactive Paper
Forbes - NY,USA
But it was too late to save the lowest-rated tranche of mortgage-backed bonds. The value of the BBB tranches of subprime mortgage paper has dropped 80%. ...
See all stories on this topic

 

 

Business Wire via Yahoo! Finance Mon, 19 Nov 2007 3:58 AM PSTDUBLIN, Ireland----Research and Markets has announced the addition of "Hedge Funds Of Funds: A Guide for Investors" to their offering.

The Systemic Crises in Hedge Funds: What Happened in August and ...
Hedgeworld (subscription) - New York,NY,USA
In August 2007, following the end of the spring subprime crisis, funds of hedge funds reported, on average, about two-sigma losses while several specific ...
See all stories on this topic

SIFMA Fixed Income Conference Highlights Risk Management
Source: Advanced Trading
Given the credit market turmoil causing top firms to report multi-billion dollar losses, it's not surprising that risk management was a major theme at the SIFMA Fixed Income Technology and e-Trading Conference last Thursday in New York. "Risk is much more important and front and center in our minds," said Dexter Senft, managing director at Lehman Brothers, in his introductory remarks to the conference. More... <http://www.hedgefund-index.com/newsfixedarb.asp>

 

First 130/30 index unveiled
http://www.ipe.com/news/First_130_30_index_unveiled_26082.php

 

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Yield Curve Corner

 

Bernanke Puts a Low Speed Limit on Growth
U.S. News & World Report - Washington,DC,USA
If Bernanke and company are right, that's all the more reason for America to adopt policies to make us more innovative and productive so the economy can ...
See all stories on this topic

 

17 reasons America needs a recession
MarketWatch - USA
Bernanke and Paulson won't admit it. And investors hate them. We're all trapped in outdated 1990s wishful thinking about a "new economy" and "perpetual ...
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: http://www.osei.noaa.gov/Events/Current/TRC23and24W324_GJ.jpg

 

Bangladesh still trying to reach all cyclone victims
November 20, 2007 05:40 AM ET
DHAKA (Reuters) - Relief workers and the Bangladesh army, air
force and navy intensified efforts on Tuesday to reach millions
of survivors of a cyclone that killed nearly 3,500 people along
the Bay of Bengal.
http://links.reuters.com/r/O8MIT/AQM6M/2NTCS/BWO8X/U5B9A/YT/t

 

The cyclone and its aftermath
The Daily Star - Dhaka,Bangladesh
The hurricane strength cyclone that hit southern Bangladesh on the night following Thursday, November 15, has caused calamitous devastation to life, ...
See all stories on this topic

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Iranian Situation

 

Iran: What Will New Talks With Washington Bring?
 http://www.stratfor.com/products/premium/read_article.php?id=298596

 

U.S. agrees to new talks with Iran
USA Today Tue, 20 Nov 2007 10:41 AM PST
The United States has accepted an Iraqi proposal to hold new talks with Iran about the security situation in Iraq, the State Department said Tuesday.

 

Iran argues nuclear case in letter to "world"
Reuters via Yahoo! News Tue, 20 Nov 2007 7:04 AM PST
Iran sent a letter to the world's top diplomats on Tuesday to argue its case in the deepening nuclear row with the West, official media reported.

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Opalesque’s Corner

 

- Opalesque Exclusive: Penso is launching the Crisis Fund to take advantage of crisis scenarios within the financial markets, Ex-Tudor trader forms EM technology hedge fund
- Goldman`s Global Alpha may end 2007 with assets down $6bln, a 60% decline, Update: Hedge fund Copper Arch to liquidate
- Eton Park merges with R6 Capital hedge fund, Thames River raises GBP83.5m via C-share issue
- Pentwater Capital opens UK office, Argentine firm markets maiden HF In U.S. , Europe for the first time
- IOSCO finalizes nine principles valuations of hedge fund portfolios
- Bank of England maps financial system to put sub-prime mortgage problems in context
- Indices: EDHEC Alternative Indexes, October: Most hedge fund strategies produced significantly positive returns well above their historical averages especially Long/Short Equity (+3.05%), Convertible Arbitrage (+1.88%)
- New indices: Zealous ATS (`ZATS`) to create PIPES Index to track alternative finance market returns, Standard & Poor`s launches S&P 500 130/30 strategy index
- Trends: Hedge funds are coming onshore
- RREEF Research: Alternative assets boom in uncertain times
- Citigroup faces $15 billion writeoff: Goldman Sachs downgrades, Credit turmoil: How Goldman steered clear, Swiss Re hit by $1 bln credit market insurance loss, Stock markets fall on fears of new writedowns, Opinion: Oak Hill sees 2008 resumption of leveraged market
- Risk: Analysis: The systemic crises in hedge funds, what happened in August and how to avert a repeat, Comment: Six questions and answers about model risk, Operational risk, the importance of a strong board
- Legal News: Portus co-founder Michael Mendelson pleads guilty to one count of fraud, Firm fined as fixed income trader hide $8.8m losses for two years
- Investors begin to show a darker mood, Yen in demand
- Deutsche Bank top performing commodities program predicts Aluminium rally will be next, Opinion: David Murrin, CIO of Emergent Asset Management: Build an oil rig or go to war, disparity in wealth between oil consumers and producers, Group launches global standard for carbon credits
- Opalesque Exclusive: Bahamas, seventh most popular destination worldwide in terms of domiciled assets, vies to attract prime brokers, hedge funds, Bahamas regulatory overview: Funds on fast track, SMART funds
- East Capital Explorer raises $530m for Eastern Europe/Central Asia allocations
- IMF: Strong fundamentals will allow Europe`s economies to weather the current financial turmoil
- Middle East: The product offered by the DIFC allowing for the creation of local HFs is very favourable from a regulatory perspective, Gulf Arab funds eye US assets, sophisticated investors may buy distressed debt but are warned against SWFs
- Online trading craze grips Vietnam
- Hong Kong fight club: hedgies v. bankers in real boxing battle
- Philippines 2008 optimism up on economy, Development Bank working on HF for exporters
- Activist News: Activist QVT buys into Northern Rock, Bull-Dog reports Yen1.93bln loss fighting off the hostile takeover bid from Steel Partners, Hedge fund makes a case for a merger of Delta and UAL, Implenia accuses Laxey of short-termism, U.S. plastics maker considers sale of firm
- News Briefs: Knight Capital Group to acquire EdgeTrade for $59.5m, a Leading Agency-Only Trade Execution and Algorithmic Software Firm, Merrill brokers want more power for their boss,  CFA Institute Centre supports progress on accounting standards convergence, but says timing of SEC`s removal of reconciliation requirements is premature,London-based Swedish hedge fund manager enters Cision election committee, Swiss regulator takes stab at market abuse
- And Finally. Dutchman buys section of Eiffel Tower stairway
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

 

Researchers have created human embryonic stem cells without destroying embryos or using hard-to-get eggs, a technique may prove to be easier, cheaper, and more ethically appealing than an alternative approach that requires cloning.
In studies published in the journal Cell and Science, two separate teams of researchers say they have sidestepped the cloning method and reprogrammed mature human cells into a primordial, embryonic-like state. Those cells were then transformed into other tissue types, such as heart cells. The long-term hope is that such freshly-created tissue may, for example, be used to heal a heart-attack patient.
For more information, see: http://wsj.com/article/0,,SB119556606750999184,00.html?mod=djemalert

 

KING OF PAY IN THE USA
 By KATE SHEEHY
Moneybag Manhattanites are set to earn an average salary of $147,000 this year - 16.7 percent more than in 2006, new labor statistics show.  Boosted by Wall Street bonanzas, residents&#39; average weekly paychecks for the first quarter of this year...
full story: http://www.nypost.com/seven/11202007/news/regionalnews/king_of_pay_in_the_usa_272513.htm

 

Top five Wall Street banks to pay record $38bn in bonuses
Wall Street's five biggest investment banks are expected to pay a record $38bn (?25.9bn) in staff bonuses this year, even though the shareholders in those firms have collectively lost about $74bn in stock declines this year, data compiled by Bloomberg News has revealed.  (The Times)
http://mail2.efnmail.co.uk/r/324637/MTk4MTI1OjE1Njk2/

 

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Funnies, Facts, Quotes, etc….

 

extirpate EK-stur-payt, transitive verb:

1. To pull up by the stem or root.
2. To destroy completely.
3. To remove by surgery.

 

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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:

 

The Global Association of Risk Professionals has announced the development of the GARP Research Center, a premier content-provider and think-tank for the financial risk management community.

Full Story...

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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.