Main News

 

UBS received an $11.5 billion capital infusion from Singapore's investment arm and a Middle Eastern investor, as it announced fourth-quarter write-downs of $10 billion. But did the Swiss bank need all that capital?
 http://online.wsj.com/article/SB119733810789120240.html?mod=djemheard

 

Washington Mutual plans to raise $2.5 billion through a preferred stock offering and will cut its dividend to 15 cents from 56 cents in moves designed to generate $3.7 billion in additional capital. In addition, the Seattle bank also expects to report a fourth-quarter loss and plans to cut thousands of jobs.
 http://online.wsj.com/article/SB119732179759119886.html?mod=djemalert

 

Columbia Management, a unit of Bank of America, has closed a $12 billion enhanced money fund for institutional investors after major clients pulled out amid losses on complex asset-backed securities, the firm says.
http://online.wsj.com/article/SB119730710066819543.html?mod=djemalert

 

Ultrawealthy group to increase hedge fund investments
Source: InvestmentNews
Despite the market's current volatility, the love affair between ultrawealthy investors and hedge funds is still torrid, according to a new survey by the Institute for Private Investors, a New York-based association for very wealthy families and their advisers. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Top Mortgage CDO Classes May Lose 80 Percent, Barclays Says
Bloomberg - USA
About 20 percent to 30 percent of principal would be covered for the ``super senior'' portions of mezzanine asset-backed bond CDOs, which mainly contain ...

 

BIS says credit market problems fuelled record activity in derivatives
Source: Forbes
The Bank for International Settlements said the summer's credit market troubles led to record activity on derivatives exchanges but weighed heavily on bond issuance.
In the derivatives market, short term interest rates instruments were particularly popular. Combined turnover in listed interest rate, currency and stock index derivatives rose by 27 pct to 681 trln usd between July and September after remaining stable in the previous quarter, BIS said. More... <http://www.hedgefund-index.com/newsderivatives.asp>

 

C.D.Oh-No!
For investors in UBS, Europe's biggest bank, the torment caused by investments tied to American subprime mortgages never seems to stop. Read More

 

There are those in the market jittering behind their computer terminals, softly rocking back and forth while whispering ‘recession’ and there are others celebrating ridiculously healthy daily gains via the Dow Jones. But as CNNMoney.com points out, it’s the drastic plunges that the market can now truly capitalize on with the use of 130/30 funds CNNMoney says will deliver if the bull begins to slide.

Full Story...

 

Could Citadel's valuation of E*Trade's CDOs wipe out capital at three big banks? Posted Dec 4th 2007 10:10AM by Peter Cohan Filed under: Goldman Sachs Group ...
www.bloggingstocks.com/2007/12/04/could-citadels-valuation-of-e-trades-cdos-wipe-out-capital-at/ - 78k - Cached - Similar pages - Note this

 

BT in hedge push
Stuff Mon, 10 Dec 2007 8:12 AM PST
The credit crunch hitting the United States and Europe is closer to the end than the beginning, BT Financial Group hedge fund specialist Peter Mitchell says.

 

 

Twisted ARMs and Figures That Lie
The numbers that matter aren't those the media report.
http://online.barrons.com/article/SB119705088781817336.html?mod=djemBF

 

No Longer the City of 'Bonfire' in Flames
By ANNE BARNARD
Twenty years after the publication of “The Bonfire of the Vanities,” the milestone provides a moment to consider how the city’s own narrative has (so far) turned out.

 

Black Humor Pervades Norway as Subprime Losses Extend to Arctic. By Robin Wigglesworth. Dec. 7 (Bloomberg) -- A subprime-linked investment has cost four ...
www.bloomberg.com/apps/news?pid=20601085&sid=a9qUgYWKwSWI&refer=europe - Similar pages - Note this

 

Monday , 10 Dec 2007
While Salman Partners forecasts that uranium could reach the $200/lb threshold late next year, prices could hit a ceiling.

 

Hermes plans to hire hedge managers
The new chief executive of Hermes, asset manager for the £40bn (?55bn) BT Pension Scheme, plans to hire its first internal hedge fund managers amid expansion plans aimed at increasing business from clients other than BT.
http://mail2.efnmail.co.uk/r/327261/MTk4MTI1OjE1ODc3/

 

Pensions grow wary of hedge funds
"Spivs like them won't get our money," is how one European pension scheme trustee rebuffed the idea of investing in hedge funds, suggesting he regarded their line of business as unappealing. The comment, relayed last month by a scheme manager, is surprising because the trustee works for a large European bank that conducts business with the hedge fund industry.
http://mail2.efnmail.co.uk/r/327198/MTk4MTI1OjE1ODc3/

_________________________________________________________________________

Yield Curve Corner

 

Fed Seems Poised to Lower Interest Rates
The Associated Press -
Then the problems snowballed, leading Fed Chairman Ben Bernanke to sign that one more cut might be needed. Analysts expect the Fed to trim its key rate, ...

_________________________________________________________________________

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/STMussouthwestst344_N7.jpg

 

This will be a new ongoing feature to keep tabs on cumulative weather for key hubs during the month so we don't lose sight of where we're coming from, when we look ahead to where we are going.

Full Story...

 

_________________________________________________________________________

Iranian Situation and Other Man Made Disasters

 

U.S., Iran, Russia: The Continuing Diplomatic Courtship
 http://www.stratfor.com/products/premium/read_article.php?id=299744

 

 

Israelis Brief Top U.S. Military Official on Iran
New York Times Mon, 10 Dec 2007 8:58 AM PST
Israel officials passed along a gloomy assessment of Iran?s nuclear ambitions to Adm. Mike Mullen, the top military official in the U.S.

 

U.S./IRAN:  A U.S.-Iranian committee set up to find ways to stem violence in Iraq will meet Dec. 18 in Baghdad, Iraqi Foreign Minister Hoshyar Zebari said Dec. 10.

 

 

Israel says Iran could have nuclear bomb by 2010
Reuters via Yahoo! News Sun, 09 Dec 2007 10:51 AM PST
Israel believes Iran will have the resources to create a nuclear weapon by 2010 despite a U.S. intelligence report that it was not building an atomic bomb, Israeli Prime Minister Ehud Olmert said on Sunday.

 

_________________________________________________________________________

Opalesque’s Corner

 

- Opalesque Exclusive: Exploring the FoHFs universe (part 10) - The first Korean FoHFs was launched last week, ahead of coming race in new Asian market
- `Value destroyers` fail manager test: What makes a good FoFs manager?
- Opalesque Exclusive: Friedberg Global Macro Hedge Fund up 7.91% in November (22.58% YTD), may re-open end of January,  Amplitude Capital fund up +7.01% in November (37.91% YTD), adds seven new markets, RAB Capital sees flat profits for 2007
- New Launches: Opalesque Exclusive: Toro Capital launches Australian equity and derivatives fund, Does Vanguard have a hedge fund in the works?,  SAC spin-out Seqa readies multi-strategy hedge fund
- Former SAC portfolio manager, David Fiszel, returns to mothership, closes Rhombus Capital, Top Asian hedge fund manager hard closes
- Assets: Hedge funds inflow totals only $16.0bln in October even as hedge fund industry posts best monthly return in seven years, direct HF investments negative, all into FoFs, YTD hedge fund inflows at $279bln vs. meager $79bln for equity mutual funds, Update: Hedge fund assets under administration climb by 13% past six months
- CASAM CISDM index: CTAs harvest October gains
- Tabb Group predicts quant funds may account for half of all US equity trading by 2010, quant funds` AUM has dropped by 40% in last 6 months, concerns that the models have been playing havoc with markets, Hyman Beck`s newest managed futures program, the Volatility Analytics Portfolio, has strong first year
- Pensions: Leading European pensions not afraid of alternatives, hedge FoFs seen attractive, Japanese pension funds able to cut equity exposure
- Japan FSA moves to improve market climate
- Credit Crunch Update: Billionare Lewis raises stake in Bear Stearns, UBS takes fresh $10bn subprime hit, `Super SIV` draws yawns from firms, fund size halved, CDOs keep melting, Adams Square CDO collapsed, Bush touts subprime plan faulted for coming too late, JP Morgan heads predicts wave of bank mergers in US and Germany, Interview excerpts: Volcker, Soros, Seidman, Shiller on the mortgage crisis
- Update: Citadel to handle E*Trade`s lucrative option order flow
- BIS Quarterly Review (December) links, summary, Bank-lending drought may continue next year, BIS says
- Legal News: Cuomo: Another New York Attorney General starts a Wall Street crusade,  SEC, FBI lodge bribery charges in penny stock sting after posing as phone hedge fund manager, Alaska sues Mercer for $1.8bn for alleged errors in calculating the plans` expected liabilities
- GEM: Merrill: Emerging markets poised to outperform in 2008, but performance will be choppier, Q&A on Asian fund managers` investment outlook for 2008: JF`s Victor Lee eyes Middle East, China themes, Has China`s IPO boom run its course? Investors, HFs now see market as too risky
- Egypt 2007: Bubble fears amid liquidity
- Window of opportunity in the Middle East according to HFR, HSBC launches Saudi indexes, funds
- Commodities: Update: Commodities taking Swiss funds` fancy - Lusenti poll, Hedge funds and private equity rated worst on costs and liquidity
- Select`s flagship Diversified Portfolios celebrate 5 years with strong returns and $425m assets
- Hedge Fund Association forms Northeastern Chapter to create new opportunities for hedge fund managers, investors and service providers
- State Street: Regime Map to describe investor sentiment stuck in Riot Point for a third consecutive month
- Ranking: Algorithmics named top company for Regulatory and Economic Capital management, Operational Risk and Collateral management in 2007 Risk Magazine Technology Rankings
- Activist News: Hedge Funds back acquisition company buying nine enormous oil tankers for nearly $800m, Delphi can begin bankruptcy vote process, J-Power rebuffs plea to install fund`s executives on its board, Sterling Capital Management targets troubled Axcelis Technologies, Jana Partners and D.E. Shaw want to talk to Philips Electronics, Regulator probes AllianceBernstein on report delay, European VCs invest locally, survey reveals
- News Briefs:Premier shorts Northern Rock stock, Ex-Blair chief Powell to join Morgan Stanley, Irish UCITS rules now permit 130/30 funds to short sell, S&P: At least one ECB rate cut in H2 of 2008 likely, Israel picks NM Rothschild to advise on Leumi sale, Middle East must loosen ties to the dollar
- . And Finally: Is stress keeping you fat? Going for the burn after a hard day's work can feel great, but it may be stopping you losing weight
- Logon: http://www.opalesque.com/main.php?act=archive

_________________________________________________________________________

Misc. Items of Interest

 

Over to you
Russia's new president will almost certainly be Dmitry Medvedev
Full article

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

 

perspicacity pur-spuh-KAS-uh-tee, noun:

Clearness of understanding or insight; penetration, discernment.

 

_________________________________________________________________________

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:

 

_________________________________________________________________________

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

_________________________________________________________________________

Regulatory Info

 

 

_________________________________________________________________________

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.