Main News

 

Florida Says Unfreezing Fund Would Spark `Fire Sale' (Update1)
Bloomberg - USA
The board also manages $37 billion of additional short-term investments and Florida's $138 billion pension fund. ``We do need our political leaders to ...
See all stories on this topic

 

BOJ chief says subprime mortgage crisis unlikely to seriously ...
International Herald Tribune - France
AP TOKYO: Bank of Japan Governor Toshihiko Fukui said Monday that the subprime mortgage crisis is unlikely to seriously impact the Japanese financial system ...
See all stories on this topic

 

http://www.finextra.com/fullstory.asp?id=17811MI5 chief warns banks of Chinese cyber threat

The head of the British security service has sent a confidential letter to more than 300 chief executives and security chiefs at banks, accountants and legal firms warning them of a Web-based attack from state organisations in China.

 

Picking Through Subprime Wreckage
While not ripe for the buying just yet, there are financial and homebuilding stocks that deserve some attention.
http://online.barrons.com/article/SB119665434319311496.html?mod=djemBF

 

Rap Stars of Wall Street
Source: Barron's Online
WHEN JEFFREY SCHACHTER was seat- ed next to LL Cool J. on a plane in 2003, the bond trader had never heard of the fabled rap singer. As they chatted, however, it became clear that Cool J., who at one point pulled out of his carry-on bag Benjamin Graham and David Dodd's Security Analysis, knew quite a bit about Schachter's world. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Hedge funds shift convertible bond investment to multistrategy ...
HedgeWeek - London,UK
The strength of the market was due to a large extent to the return of hedge funds, many of which had shifted their focus away from convertible arbitrage ...
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Thain plans overhaul of Merrill management culture
John Thain plans to revamp the senior management culture at Merrill Lynch in part as an effort to better emulate Goldman Sachs, one of Merrill's chief competitors and Thain's former employer.  (Financial Times)
http://mail2.efnmail.co.uk/r/326464/MTk4MTI1OjE1ODE1/

 

by Roger Ehrenberg

 

by Christopher Holt

 

The year 2007 is destined to be memorable for investors. The Dow hit a record high 34 times with two closing milestones -- 13000 and 14000 -- having been notched. But what is the most important lesson that individual investors should take from this year's wild ride, and how can they apply that lesson next year? Read what a dozen prominent figures in the investment-fund arena had to say.
INSIDE: Small investors have heard this advice over and over: Don't chase past returns. But it's hard not to, partly because it's unclear what else might predict success. We decided to approach the problem from a different angle; An effort by a high-profile group of academics and professionals to overhaul fund-indexing strategy is stalled; L.J. Altfest & Co. takes a highly diversified route, where 'high quality is king'; and Treasury inflation-protected securities offer benefits as part of a long-term investment strategy.

http://online.wsj.com/public/page/2_1340.html?mod=djemspecial

 

Reuters - 1 hour ago
Such CDO "events of default," which can lead to liquidations, are triggered when the underlying collateral pool falls below a certain ratio, according to ...
Fitch says US subprime, CDO woes increase likelihood of defaults Forbes
Reuters
Derivative Fitch: US CREL CDO Delinquencies Edge Higher Business Wire (press release)
all 17 news articles »

 

CDO issuance grinds to a halt
Financial News Online US, UK - 2 hours ago
Deal activity in cdos, which package together corporate bonds or asset backed securities and divide them into different risk pieces, started to slow during ...

 

Paulson Says Subprime Loan Plan to Ease Economy Risks (Update5). By John Brinsley and Alison Vekshin. Enlarge Image/Details ...
www.bloomberg.com/apps/news?pid=20601087&sid=aD6EwTYqLIu4&refer=home - 7 hours ago - Similar pages - Note this

 

Fri, 30 Nov 2007, 13:05

Institutional Investor/Hedge Fund Daily
Another quant fund is coming to an end. GMN Capital is closing its doors after assets in its only fund, GMN Master Fund, lost more than 50%, falling from $1.2 billion to roughly $500 million. The San Francisco-based hedge fund, which debuted earlier this year with an estimated $1 billion as a spinoff of London-based GSA Capital, was socked by the August turmoil.

 

How it was rigged
A farce of a poll, but Vladimir Putin looks stronger
Full article

 

CANADA - Canada Pension Plan (CPP) has warned pension schemes could face restrictions on alternative investments if governments move to include them in legislation restricting investment by sovereign wealth funds

 

BOSTON (HedgeWorld.com)—Celent LLC has completed an analysis of dark liquidity pools in Europe, Canada and Japan that suggests that while there is room for the spread of this way of trading outside of the United States, there are obstacles as well. ......

 

Monday , 03 Dec 2007
By a narrow 51%-49% vote, Venezuelan voters Sunday refused to give President Hugo Chavez a constitutional blank check to expand his executive powers.

 

CRUSHING BEAR HUG FOR HEDGE HONCHO
 By RODDY BOYD
The Bear Stearns portfolio manager who kicked off the deepening bond market crisis is trying to move on with his life and launch a hedge fund, but a worried Bear isn&#39;t likely to let him depart so quickly.  Ralph Cioffi, the portfolio manager of...

 

Intelligence Survey--IT risk
A new survey on information technology risk explores communication breakdown between risk and IT staff around measurement of technology risks.
More on Surveys ...

 

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.

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Yield Curve Corner

 

Yellen Sees Risks to Spending From Market `Turmoil' (Update1)
Bloomberg - USA
Yellen's remarks buttress those made by Fed Chairman Ben S. Bernanke and Vice Chairman Donald Kohn last week, which stoked investors' expectations for lower ...
See all stories on this topic

 

Stocks Rally Sharply; What Bad News?
Barron's - USA
Forgotten in the excitement was the very reason Bernanke was summoned in the first place, but that amnesiac episode passed. By Friday, Goldman Sachs' ...
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/VHSpopocatepetl.gif

2007 Hurricane Forecast

FORECAST ACTUAL

17 named storms  14 named storms

9 hurricanes6 hurricanes

5 major hurricanes2 major hurricanes

At least 1 major will hit the US coast 0 hit the US coast

DENVER —  The 2007 Atlantic hurricane season should be "very active," with nine hurricanes and a good chance that at least one major hurricane will hit the U.S. coast, a top researcher said Tuesday.

 

Forecaster William Gray said he expects 17 named storms in all this year, five of them major hurricanes with sustained winds of 111 mph or greater. The probability of a major hurricane making landfall on the U.S. coast this year: 74 percent, compared with the average of 52 percent over the past century, he said.

 

Last year, Gray's forecast and government forecasts were higher than what the Atlantic hurricane season produced.

 

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Iranian Situation and Other Man Made Disasters

 

U.S., Iran: Nuclear Program Halted in 2003?
 http://www.stratfor.com/products/premium/read_article.php?id=299321

 

Iran's Technical Ability to Enrich Uranium Questioned
 http://www.stratfor.com/products/premium/read_article.php?id=299328

 

U.S. Says Iran Ended Nuclear Arms Work
New York Times Mon, 03 Dec 2007 9:34 AM PST
A new assessment by American intelligence agencies concludes that Iran halted its nuclear weapons program in 2003 and that the program remains on hold, contradicting a previous intelligence report.

 

US: Iran still able to develop nukes
AP via Yahoo! News Mon, 03 Dec 2007 11:52 AM PST
Iran halted its nuclear weapons development program in the fall of 2003 under international pressure but is continuing to enrich uranium, which means it may still be able to develop a weapon between 2010 and 2015, senior intelligence officials said Monday.

 

U.S., IRAN:  A new report by U.S. intelligence agencies says Iran halted its nuclear weapons program in 2003, and that the program remains on hold, The International Herald Tribune reported. This document contradicts an assessment released two years ago that said Tehran was working to build a nuclear bomb.

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Opalesque’s Corner

 

- Opalesque Exclusive: Exploring the FoHFs universe (part 9) - Creative FoHFs group exchanges advisory services against access to hedge funds, new hybrid FoFs reserves 25% for special situations
- Dexion raises GBP460m more than expected, takes top spot in listed hedge funds over Mashall Wace,  investors preference big, easily traded funds, Dexion Absolute share offer makes it world`s largest listed FoHFs
- Swiss EFG International buys UK`s Marble Bar, bringing client assets in HFs to CHF15 bln
- New Launches: Scottish investment wizard, youngest person on Carter Anderson Asian Power 100 list, launches hedge fund, Henderson to launch long/short European properties equities fund, Composition Capital`s second Asian property FoF launched
- Paulson & Co`s next move: Shift of bets to corporate-debt losses
- Drake Capital`s flagship Global Opportunities fund down 10.5% in October (-9.91% YTD),  Highbridge Event Driven Relative Value down 6.74% YTD after losing 12.78% in one month
- Performance: Hedge funds expect November losses as credit woes deepen,  Hedge funds set to record worst month of returns since 2000, 2.78% first 28 days of November, Quant funds trail pack in third quarter, Hedge funds tend to inflate December returns
- HF assets nearly $3 tln, boosted by significant growth in Brazil and China funds, credit crunch led to increased consolidation in HF sector
- Investors: Survey reveals over half of European institutions are `convinced non-investors` in hedge funds, to add `only` EUR17bln to hedge funds next 2-4 years (of EUR107bln alternatives), detailed analysis country by country, Australian research shows investors willing to increase exposure to alternative investments over next 12 months despite continuing subprime crisis, Deloitte poll found that 63% of investors not satisfied with HF`s level of transparency
- Scores of London-based hedge fund managers move part of operations to Switzerland for proposed UK tax crackdown on non-domiciled residents
- Regulators: Sebi may relax registration of sub-accounts, Policymakers in Japan are preparing to double taxes on dividends and capital gains from 10 to 20% next spring
- Lampert says critics ignore Sears` gains
- Credit Crunch Update: US subprime plan faces hurdles, Comment: Treasury`s subprime rate plan is a great big zero, ETrade firesale seen hurting Wall Street portfolios, Moody`s takes ratings action on six of Citigroup`s seven SIVs,  20 SIVs were impacted by Moody`s review, UBS financial rating cut by Moody`s to B+ on subprime loss, `Big Six` audits will take tougher stance on banks` assessment of subprime holdings, to publish paper
- Book Excerpt: `Hedge Hunters` by Katherine Burton (Bloomberg Press)
- Update: William Ackman in pursuit of MBIA Insurance
- Asset managers win big rewards: Up to $6m for CIO, Family offices hit with shortage of investment professionals, raise salaries up to 30% p.a.
- $3.7 bln loss forces ouster of Morgan Stanley co-president Zoe Cruz, Walid Chammah and James Gorman named Co-Presidents of Morgan Stanley, Exit of Cruz leaves few women execs on Wall Street, background: How Zoe Cruz lost her job
- People: Lehman`s Mannix shows hedge funds are for girls, Optimal to target consultants, hires Camilla Crowe
- Derivatives: Investors seek to make money from a downturn from property derivatives, The Dillusion of Property Derivatives: Market dangerously close to collapsing, Hot summer at the derivatives exchanges
- Sovereign funds: The difference between HFs and SWFs,  U.S. biggest recipient of sovereign funds this year, China`s sovereign wealth fund seeks to be stabilizing presence in global markets, has to make 300 million Yuan per day, not to invest in infrastructure
- Legal News: SEC files civil action (fraud) against Michigan hedge fund,  Seeing through false identities and sham hedge fund `research` firms, SEC charges two with fraud
- Northern Rock Update: JC Flowers makes new `flexible` Rock bid, N Rock suitor JC Flower `may walk`, Virgin silent on talk that Rock bid backer Deutsche Bank may walk
- Emerging Markets: Many investors not aware of changing Africa:  Pan-Africa fund up 45% (gross of fees)
- Forex: Hotels in UAE, including those owned by Dubai`s ruler, change Dollar rates up to 17% below official rate, expecting revaluation, Exchange rates in UAE spark confusion, Dollar peg puts Qatar summit in spotlight, Why dollar may be set for a rebound
- Julius Baer eyes tie-up with Japan`s Shinsei-Nikkei
- Hedge funds betting big on US presidential race
- Activist News: Brink`s, already under fire from Pirate, finds MMI Investments nominating four board candidates, Investor rights in Japan are overdue for a boost: Corporate governance ratings agency ranks Japan 38th out of 49 countries - behind Poland, Venezuela, Peru and Russia, Implenia says Russia deal independent of Laxey bid, considers suing hedge fund, Bank of Rajasthan to raise Rs 167crore shares to Indus Capital Partners and Max India
- News Briefs:  Investment Strategy Annual released by LaSalle: Outlook for global real estate remains solid despite disruption in credit markets, Caledonian Global Fund Services adopts Advent`s Geneva, AIB closes hedge fund trading unit, UK house prices suffer sharp fall, Mercer establishes Dubai office,  ING plans $700 mln China property fund, EIP`s Toby Bland and Fortis` Ron Rutland win championship, heavyweight battles in Hedge Fund Fight Nite
- ...And finally: Cat survives 19 days with peanut jar on head
- 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….

 

soporific sop-uh-RIF-ik; soh-puh-, adjective:

1. Causing sleep; tending to cause sleep.
2. Of, relating to, or characterized by sleepiness or lethargy.
3. A medicine, drug, plant, or other agent that has the quality of inducing sleep; a narcotic.

 

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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.