Main News

 

 

 

The Subprime Drama Continues, but for How Long?
Almost every day, a new twist seems to appear in the subprime crisis drama. This week, the investment arm of the government of Abu Dhabi announced an infusion of $7.5 billion to acquire a 4.9% stake in Citigroup, which has been slammed by enormous losses in the credit market. The announcement came on the heels of a report from Bank of America that the subprime mess is about to get messier as interest rates "reset" -- or rise -- on more than $360 billion worth of adjustable rate subprime mortgages. Has the crisis run its course? Knowledge@Wharton asked that question and several more to Richard Herring, a Wharton finance professor and co-director of the Wharton Financial Institutions Center.
http://knowledge.wharton.upenn.edu/article/1852.cfm

 

Brace for bank defaults! The money market is sending up warning signals.

 

Municipal Bond Deals Squeezed By Credit Crisis
The widening credit crunch is making it harder for cities and school systems to get money for buildings, ballparks and other vital projects from the $2.5 trillion market for municipal bonds, a sector of Wall Street that rarely sees trouble.
(By David Cho, The Washington Post)

 

Assessing Market Risk for Hedge Funds and Hedge Funds Portfolios
by Francois Serge Lhabitant
We suggest an empirical model to analyze the investment style of individual hedge funds and funds of funds. Our approach is based on a mixture of the style analysis approach suggested by Sharpe (1988), the factor push approach used in stress testing, and historical simulation. An interesting and straightforward extension of this model is the estimation of value-at-risk (VaR) figures... More... <http://www.hedgefund-index.com/s_marketrisk.asp>

 

Fed, Treasury, FDIC Stymied By Lack of Data on Subprime Loans. By Craig Torres and Alison Vekshin. Nov. 29 (Bloomberg) -- Federal regulators, who met with ...
www.bloomberg.com/apps/news?pid=20601087&sid=a49Os9FYyqX0&refer=home - 5 hours ago - Similar pages - Note this

 

Activist Hedge Fund Returns Hit Hard
Financial Times - Thursday November 29, 09:47 GMT

 

Goldman Greedy? Give me a break!
Wall Street Journal Interactive - Thursday November 29, 07:40 GMT

 

Thu, 29 Nov 2007, 06:00

HedgeWeek
Markit Group, a provider of independent data, portfolio valuations and OTC derivatives trade processing, has acquired International Index Company and has agreed to acquire CDS IndexCo in a transaction it expects to complete by the end of the year, bringing two series of widely-used credit derivative indices under common ownership.

 

Wed, 28 Nov 2007, 18:17
Financial News
A shortage of talented staff is forcing hedge fund management firms to give away more of their profits. Hedge fund managers seem assured of high rewards for the foreseeable future, according to Sir John Gieve, a deputy-governor of the Bank of England, who said last week: "The fundamental drivers behind hedge fund growth are there. The splitting and repackaging of risk, together with internationalization, has created opportunities. A high value has been placed on those who have the expertise to make the most of this process."

 

 

 

European Economic Forecast: Monetary Policies Look Set To Converge In 2008
European economies are entering a period of heightened uncertainty. Soaring oil and other commodity prices have just started to translate into higher headline inflation. The new heights reached by the euro and the British pound sterling exchange rates against the U.S. dollar bring further evidence that Europe is going to be most affected by the U.S. slowdown. These conflicting risks--higher inflation versus lower growth--place European central banks in a difficult position. In our opinion, monetary policies will converge in 2008 toward a more accommodative stance.
To learn more, click or copy and paste the URL below:
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http://standardandpoors.rsys1.net/servlet/cc5?kHiQYBYWQTVsLgHxhilpuHQJhuV2VR

by Bespoke Investment Group

 

by Bespoke Investment Group

 

 

 

Hedge fund pumps 2.5 bln dlrs into ETrade as CEO exits
AFP via Yahoo! News Thu, 29 Nov 2007 2:36 PM PST
One of America's biggest hedge funds, Citadel, has agreed to pump 2.5 billion dollars into the troubled online brokerage ETrade to help shore up its ailing balance sheet, the firms said Thursday.

 

by Michael Shedlock

 

As the 20th century drew to a close, this McKinsey Classics selection suggested
that although globalization would give companies access to the best talent,
markets, and resources in the world, it would also force all companies to
compete with the world's best. While some organizations learned to use
intangible assets and mobile capital to address a market of six billion people
and counting, others would find that the physical-distribution networks,
regulatory barriers, and privileged relationships that formerly conferred
durable competitive advantages were now just the shackles of geography. Read
"Getting to global" (November 1999) for thoughts on how executives can grasp
the opportunities in volatile and uncertain markets as they come to embrace the
whole world. (Guest passed through December 6)
http://e.mckinseyquarterly.com/WART0176F582332CE4E1937FCE5490

 

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Yield Curve Corner

 

Bernanke In Driver's Seat For Friday
Forbes - NY,USA
With Thursday's trading session in the books, investors are waiting to hear from Federal Reserve Chairman Ben Bernanke. Bernanke is due to speak at the ...
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/FSHScalifornia333_G12.jpg

Martinique: Earthquake, No Tsunami
    http://www.stratfor.com/products/premium/read_article.php?id=299128

 

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Iranian Situation and Other Man Made Disasters

 

Iraq: How U.S.-Sunni Cooperation Will Affect U.S.-Iranian Talks
    http://www.stratfor.com/products/premium/read_article.php?id=299094

 

With opponents divided, Iran continues nuclear effort
International Herald Tribune Thu, 29 Nov 2007 12:07 PM PST
Nothing seems to be bending the will of Iran, which is flush with oil revenues. Representatives of six nations will meet in Paris on Saturday to discuss a possible new Security Council resolution.

 

Iran's Shadow
Investor's Business Daily via Yahoo! News Wed, 28 Nov 2007 3:45 PM PST
Middle East: Photos of the Israeli and Palestinian leaders shaking hands give a misleading picture of the significance of the Annapolis summit. Iran was the 800-kiloton guerilla not in the room, but feared by all.

 

Khatami rallies Iran reformists
Financial Times Thu, 29 Nov 2007 11:46 AM PST
At a main crossroads in the holy city of Mashhad a blue hoarding welcomes Mohammad Khatami, Iran’s former reformist president, as the “national pride”.

 

Geopolitical Diary: Iranian Announcements and Jockeying for Power
    http://www.stratfor.com/products/premium/read_article.php?id=298961

 

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Opalesque’s Corner

- Opalesque Exclusive: Hedge Fund World Zurich, day 1, on global macro investing, the problems of liquidity, 130/30 funds and a new framework for hedge fund allocation:  `I am going to ask hedge funds to adapt to my portfolio`
- Opalesque Exclusive: First Korean home-grown hedge funds expected to debut in 2009, Woori to set up hedge fund in Singapore to prepare for Korean 2009 hedge fund opening
- RMF to invest hundreds of millions of dollars into Asian hedge funds during 2008
- Opalesque Exclusive: Eminent scientist Dr. Wolf Kohn joins SEQA Capital Advisors as Head of Research for High Speed Trading, Demand for Quants heats up on Wall Street but recruitment is hard
- Hedge fund investors demand better deals, 3 HF managers have recently faced rebellious investors
- The World`s 50 Richest Arabs (list)
- Fortress Investment to start commodities hedge fund, Subprime short seller Lahde preps new credit hedge fund, Investment firms team up to launch healthcare hedge fund, Germany`s Sal Oppenheim launches first equity hedge fund, Tina So, Ye Xiang launch China fund, find mainland backer
- Irak fund lifts YTD performance to over 20%
- Pequot shuts three small hedge funds, managers out
- MBIA, Ambac bear William Ackman set to donate `hundreds of millions` of profit to charity
- New Mexico boosts hedge fund allocations to 15%
- `A dangerous period for the world, considerable traumas ahead`: Wall Street Grandees get gloomy, Probability of bank default hits 1987 crash levels, Bank CDO losses may reach $77bln, JPMorgan says, Survey: Buyout firms, hedge funds say credit slump may last 12 months, Fitch to overhaul ratings process, will review originators and issuersFF
- San Francisco hedge fund GMN Capital shuts down, returns money
- Cheyne`s Queen`s Walk takes further subprime write-downs, further buy-back
- People: Sisu Capital co-founder to start a PhD on novelist George Eliot, Managed Funds Association expands legal team
- Opalesque Exclusive: ProFundCom Investor Relation solution helps hedge funds focus on best leads, cross-selling, AlternativeSoft expands to the US
- Man capitalizes on climate change with carbon trading, believes carbon futures prices to quintuple, Barclays Capital invests in green Canadian firm,  Google`s next frontier: Renewable energy, to invest hundreds of millions,  Ethanol craze cools as doubts multiply
- Aldgate Capital names Nicholas Harding CEO to prep acquisitions in gaming sector
- Northern Rock`s small shareholders step up fight against Virgin, ally with hedge funds,  Virgin plans to grow Northern`s savings book to GBP30bln over three years
- FSA encourages growth of Islamic finance in the UK
- Lack of bankruptcy settlement laws in DIFC hampers court from settling Forsyth case
- Activist News: Steel Partners backs off Bull-Dog, but still pursuing other targets in Japan, Babcock Capital fund should consider winding up, hedge fund says
- News  Briefs: Wells Fargo to take $1.4 billion charge for bad loans,  Bear Stearns cuts 4 percent of staff,  Lehman set to buy Van der Moolen specialist unit, Wilshire launches 130/30 mutual fund, UK hedge fund Laxey reveals probe as it extends takeover offer for Implenia,  BNP Paribas establishes hedge fund centre at HEC Business School, DFSA hosts international regulators
- ...And finally: Scotland spends six months and $250,000 before unveiling their brilliant new slogan: `Welcome to Scotland`
- 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….

 

hirsute HUR-soot; HIR-soot; hur-SOOT; hir-SOOT, adjective:

Covered with hair; set with bristles; shaggy; hairy.

 

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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.