Main News

 

UP AND DOWN WALL STREET DAILY By RANDALL W. FORSYTH
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

 

Anger Over Bush Mortgage Plan Is Misplaced
U.S. News & World Report - Washington,DC,USA
I am still getting E-mail from many of my readers (especially the more libertarian-inclined) moaning about the Bush-Paulson subprime mortgage plan. ...

 

It has almost become a maxim on Wall Street: When markets implode, the debris will crash down on top of Credit Suisse. However the firm has largely escaped the subprime woes.
http://online.wsj.com/article/SB119742337647022419.html?mod=djemheard

 

China sovereign fund cautions against protectionism
Lou Jiwei, the head of China's new $200bn (?135.8bn) sovereign investment fund, on Monday warned western governments against using "national security" as an excuse for protectionism, saying his fund would boycott such countries.  (Financial Times)
http://mail2.efnmail.co.uk/r/327548/MTk4MTI1OjE1ODkw/

 

Harnessing hedge funds
Financial Times Tue, 11 Dec 2007 3:51 AM PST
This week a London-based group of hedge fund luminaries ends a period of consulting on a draft code of practice for the industry and gets down to actually writing it.

 

Citi names Pandit CEO; Bischoff becomes chairman
Market Watch Tue, 11 Dec 2007 2:48 PM PST
NEW YORK (MarketWatch) -- Former hedge-fund manager Vikram Pandit was named chief executive of Citigroup Inc. on Tuesday, taking control of a financial-services giant that's suffering on multiple fronts with global credit in crisis and looming risks of U.S. recession.

 

Arab Stocks Lure BlackRock, Goldman as US Stumbles (Update1). By Michael Tsang and Zainab Fattah. Enlarge Image/Details. Dec. 11 (Bloomberg) -- Arab stocks, ...
www.bloomberg.com/apps/news?pid=20601213&sid=acXUEDirRjzA&refer=home - 11 hours ago - Similar pages - Note this

EXTRACTING PORTABLE ALPHAS FROM EQUITY LONG/SHORT HEDGE FUNDS
by William Fung & David A. Hsieh
This paper shows empirically that Equity Long/Short (Equity L/S) hedge funds have significant alpha to both conventional as well as alternative (hedge fund-like) risk factors utilizing hedge fund data from three major databases. Following the terminology introduced in Fung and Hsieh (2003) Journal of Fixed Income 58, 16-27, we call these Equity alternative alphas (or Equity AAs for short). Equity AAs are extracted from Equity L/S hedge fund returns by first identifying the systematic risk factors inherent in their strategies... More... <http://www.hedgefund-index.com/s_lsequity.asp>

 

At least four of the 10 biggest U.S. corporate pension plans have launched liability-driven investment programs, and a growing number of firms of all sizes are likely to do so in 2008 — despite an...

 

Plenty of money managers and their friends should be without gifts this holiday season. Indeed, 2007 was characterized by plenty of misdeeds — an attempted kidnapping of a former mistress,...

 

NEW YORK — While members of the broader financial services industry might be concerned about layoffs or lower bonus payouts because of the liquidity crunch and subprime meltdown, those in the asset...

 

Citigroup Names Pandit CEO to Clean Up Subprime Mess (Update1). By Bradley Keoun. Enlarge Image/Details. Dec. 11 (Bloomberg) -- Citigroup Inc. named former ...
www.bloomberg.com/apps/news?pid=20601087&sid=a0E2M0ZGUtdI&refer=home - 7 hours ago - Similar pages - Note this

 

Implications For Japanese Banks Of Basel II Pillar 3 Disclosures
Japanese banks started applying new regulations relating to capital adequacy ratios, as laid down in Basel II Pillar 3, from fiscal 2006 (ended March 31, 2007). The regulations are designed to significantly increase the level of risk-related information that the banks must disclose and improve the banks' financial soundness through market discipline. Japan is the first country to adopt these new regulations, and investor interest is high.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYCDRQTVsLgHxhilpuHQJhuV2VR

 

Correlated assets drag pensions back into deficit
http://www.ipe.com/news/Correlated_assets_drag_pensions_back_into_deficit_26491.php

 

TAKING STOCK: TEN YEARS AFTER THE ASIAN FINANCIAL CRISIS
The Asian financial system could become a full-fledged partner in the
global triad of economic powerhouses, alongside Europe and the United
States--but only if its regulatory systems, economic ministries, and
financial institutions improve dramatically.
http://e.mckinseyquarterly.com/WBRT0169696B032CE4E1937919E600

 

Bank-Lending Drought May Continue Next Year, BIS Says (Update1)
Bloomberg - USA
The slump in global credit markets may force banks, brokerages and hedge funds to cut lending by $2 trillion and trigger a ``substantial recession'' in the ...
See all stories on this topic

 

Why Money Funds Are Thriving in the Chaos
Barron's - USA
In a world of collapsing hedge funds and bond-fund implosions, money-market mutual funds have become a haven for investors, attracting more than $600 ...
See all stories on this topic

 

Breaking with convention
MSNBC - USA
Some funds set out to take advantage of extreme volatility. But most hedge fund managers, if they are uncertain about the direction of markets, will "batten ...
See all stories on this topic

 

Not-so-super funds
CNNMoney.com - USA
That's because this new breed of souped-up funds, using strategies hedge funds employ, claims to have the power to beat the market indexes over the long run ...
See all stories on this topic

 

Tuesday , 11 Dec 2007
UBS forecasts that industrial metals prices will further consolidate next year, but remains optimistic for copper and aluminum, which may outperform other base metals.

 

Sovereign Wealth Bets the Ranch on Banks
Portfolio - Tuesday December 11, 07:58 GMT

 

Head of cash CDO structuring leaves Calyon
Reuters - USA
LONDON, Dec 10 (Reuters) - Calyon's former global head of cash collateralised debt obligations (CDO) structuring Edouard Bremond has left the investment ...

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Yield Curve Corner

 

Recession Predictions and Investment Decisions
Washington Post - United States
How in the name of Alan Greenspan, Ben Bernanke, and all the other economic saints and seers can I be so dismissive of something that's attracting so much ...

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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/TRColga345_G10.jpg

 

Other: Virus Starts Like a Cold But Can Turn Into a Killer
(By Rob Stein, The Washington Post)

 

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Iranian Situation and Other Man Made Disasters

 

Iran: Ahmadinejad Sees a 'Step Forward' in U.S.-Iranian Relations
 http://www.stratfor.com/products/premium/read_article.php?id=299794

 

DEBKAfile Reports: Two surfaced Iranian Kilo-class submarines spotted in Persian Gulf by US warship
30 Nov.: The USS Vicksburg cruiser tracked and photographed the Iranian Russian-designed diesel-electric attack subs some weeks ago. There was no communication between them. DEBKAfile’s military sources report that this was the first time US warships have run into a par of surfaced Iranian subs.
Wednesday, Nov. 28, Iranian Navy commander Adm. Habibollah Sayyari claimed it was expanding its sub fleet, including a new home-built small submarine called Ghadir, equipped with sonar-evading technology. He said the new craft would “give a crushing answer to enemies when needed, thanks to domestically-made equipment.” They can fire missiles to hit Israel, the admiral claimed.

 

ROUGH ESTIMATE WHAT US INTEL MISSED ON IRAN NUKES

 

 

 

Iran restarted nuclear weapons program in 2004: dissident
AFP via Yahoo! News Tue, 11 Dec 2007 10:37 AM PST
Iran resumed its nuclear weapons program in 2004, according to a US-based dissident who said Tuesday that US intelligence had failed to include his findings in a surprise about-face downgrading the Iranian threat.

 

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Opalesque’s Corner

 

- Canadian PE firm Ubequity buys stake in the hedge fund platform PCE Investors
- Merchant banker Grail Partners acquires minority stake in Creighton Capital Management
- Ultrawealthy group to increase hedge fund investments, Market volatility no deterrent, study finds
- New Launches: Opalesque Exclusive: Vaughan-Smith sets Q1 launch for maiden FoF, Thor hammers out double leveraged version of statistical offshore arbitrage vehicle
- Opalesque Exclusive: New alternative beta fund so far delivers what it promised, how it is done: Three steps to replicate 500 managers
- Second generation FoF investors ask for more:  separate accounts set up for a single client to invest in commingled subaccounts with underlying hedge fund managers, customized FoFs, combinations
- Despite returns, advisers bullish on managed futures, performance expected to improve
- Asia-focused Penta hedge funds run by John Zwaanstra up 123% through October, Gandhara Capital posts strong performance,  Sloane Robinson achieves 41% return, Ragnhild Wiborg`s hedge fund Consepio reports positive November return
- Asia`s biggest hedge fund Sparx to boost investments in Japan brand-name firms
- RAB`s profit thwarted by performance fees, Northern Rock
- Indices: Hennessee Hedge Fund Index down 1.58% in November, equities post largest monthly loss in 5 years, Most EurekaHedge HF indices so far down in November, fixed income up 0.5% est., CTAs up 1.5% est., Barclay Hedge Fund Index down 1.79% in November, 10.02% YTD,  HedgeFund.net: Hedge funds defend against difficult equity markets, return -0.89% est. in November 2007 and +10.71% YTD, Comment: Reports of industry demise have been greatly exaggerated, HFRX got the ball rolling
- Einhorn finds plenty of opportunities to take long positions
- Regulators: City workers have less confidence in FSA after Northern Rock collapse, DFSA Issues its Hedge Fund Code of Practice
- Harnessing hedge funds: UK code of practice to get written
- Barings` poll: UK pension funds identify emerging Asia as the region with the greatest potential for equity gains
- Legal News: T. Boone Pickens` son gets probation in fraud case, An ETN behaving badly: INP - And Barclays doesn't win any transparency point
- People: Private Advisors strengthens institutional team with two M.D.s, Sinopia names global chief executive officer, Ted Barksdale to head Federal Street Partners` Tokyo office, Synapse fund manager takes a break from City stress, The big winners from the credit crisis, Naughty and nice in 2007
- F&C Partners: Credit crisis may not wind down until banks offer debt at prices buyers of distressed assets will take
- Credit Crunch Update: UBS taps foreign investors after taking $10bln hit, SEC, Spitzer probed Bear CDO pricing in 2005 - a missed chance to contain credit crisis?, SIVs say `superfund` fees too high for them to be interested, Banks under pressure to raise more capital, increased tier-one issuance is likely next year, Forecast: U.S. economic rebound will support stabilized financial markets in 2008
- Carbon Trading: Market forces essential to halting global warming: Gore,  LCH.Clearnet to launch CO2 credit service to compete with ECX, Put carbon tax on babies: academic, US investors willing to try carbon emissions trading
- Exchanges: Finally: Canadian exchanges plan to merge, Bursa Malaysia says in talks with CME Group, Derivatives exchanges record busiest-ever quarter
- Industry Risk - Growth in Islamic Finance spurs new risk management methodologies
- Other Voices: Putin`s support of Medvedev as next President `hugely positive for markets`
- Aberdeen to stay clear of China, Japan, Australia in 2008
- Custodians and prime brokers` race to support 130/30 funds begins, Cogent Research: Financial advisors to embrace more sophisticated investment products over the next 2 years, mutual fund demand to decline
- Greg Troccoli of Opalesque Technical Research thinks the technical signs point to a rate-cut rally ahead, CNBC video
- Activist News: Philips will not go the way of ABN Amro as hedge funds wield muscle, Principle Capital seeks biofuel domination, Hedge funds as shareholder activists from 1994-2005
- News Briefs: Sovereign wealth funds bet on banks, some notable deals, Best place to work 2008 - the latest league tables, Dollar may have hit bottom, analysts say,  Pandit restructures before key meeting, Citi to acquire MetalMark Capital, BoA`s Columbia Strategic Cash Portfolio to close, Goldman Sachs enjoys bonus bonanza, `The Castro Gene` named Award-Winning Finalist, Barclays launches Islamic ETFs in UK, China's $200 bln fund feels pressure to meet goal
- . And Finally: Indian eatery boasts graveyard seating
- 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….

 

artifice AR-tuh-fis, noun:

1. Cleverness or skill; ingenuity; inventiveness.
2. An ingenious or artful device or expedient.
3. An artful trick or stratagem.
4. Trickery; craftiness; insincere or deceptive behavior.

 

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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.