Archive: 12/21/2007
Main News
Cambridge losses mount further amid sub-prime crisis
Several hedge funds run by London's Cambridge Place Investment Management had another terrible month in November, dropping as much as 13% as they were hammered by the ongoing sub-prime crisis. (Financial Times)
http://mail2.efnmail.co.uk/r/329568/MTk4MTI1OjE1OTg1/
Several hedge funds run by London's Cambridge Place Investment Management had another terrible month in November, dropping as much as 13% as they were hammered by the ongoing sub-prime crisis. (Financial Times)
http://mail2.efnmail.co.uk/r/329568/MTk4MTI1OjE1OTg1/
by Andy Abraham
Bear Stearns posted the first quarterly loss in its 84-year history on a higher-than-projected $1.9 billion in mortgage write-downs. The company reported negative revenue of $379 million as write-downs surpassed revenue. Chairman and Chief Executive James E. Cayne said the firm was "obviously upset" with the results and that Bear's executive committee won't receive bonuses this year.
http://online.wsj.com/article/SB119814096394842157.html?mod=djemalertNEWS
http://online.wsj.com/article/SB119814096394842157.html?mod=djemalertNEWS
The credit crunch
There is certainly a path out of the gathering banking crisis, but no guarantee that the world economy will find it ... more
There is certainly a path out of the gathering banking crisis, but no guarantee that the world economy will find it ... more
2 Young Hedge-Fund Veterans Stir Up the World of Philanthropy
New York Times - United States
By STEPHANIE STROM As hedge-fund analysts, Holden Karnofsky and Elie Hassenfeld made six-figure incomes deciding which companies to invest in. ...
New York Times - United States
By STEPHANIE STROM As hedge-fund analysts, Holden Karnofsky and Elie Hassenfeld made six-figure incomes deciding which companies to invest in. ...
The Bear Flu: How It Spread
BusinessWeek - USA
Their innovation, a particularly aggressive form of collateralized debt obligation, or CDO, became the building blocks of the industry's push to keep ...
BusinessWeek - USA
Their innovation, a particularly aggressive form of collateralized debt obligation, or CDO, became the building blocks of the industry's push to keep ...
S&P slashes mortgage-backed CDO debt on liquidations
Reuters - USA
S&P said it has received notices of an intent to liquidate from the trustees of Tricadia CDO 2007-8 Ltd, TABS 2007-7 Ltd and TABS 2006-5 Ltd. It did not ...
Reuters - USA
S&P said it has received notices of an intent to liquidate from the trustees of Tricadia CDO 2007-8 Ltd, TABS 2007-7 Ltd and TABS 2006-5 Ltd. It did not ...
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Amaranth traders try, try again. Wed, 19 Dec 2007, 13:50. Euromoney Institutional Investor/Hedge Fund Daily So far, former Amaranth Advisors' traders Brian ... www.hedgeweek.com/ - 71k - Cached - Similar pages - Note this |
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Distressed HFs: Wait till 2008. Wed, 19 Dec 2007, 13:10. Euromoney Institutional Investor/Hedge Fund Daily Corporate defaults at quarter-century lows have ... www.hedgeweek.com/ - 71k - Cached - Similar pages - Note this |
Why do hedge funds stop reporting performance? A. Grecu, B. G. Malkiel, and A. Saha. Why do hedge funds stop reporting performance? According to Grecu, Malkiel, and Saha, there are two possible explanations. First, funds stop reporting when they underperform their peers. Second, they stop when they do not need to attract additional capital. Through performance comparisons, hazard rate computations, and the identification of factors increasing the risk of reporting failure, the authors attempt to determine the more likely of the two possible explanations. More...
NEW YORK (HedgeWorld.com)—Steven Cohen's $14 billion SAC Capital Advisors LLC had four funds rated by Moody's, potentially as a step toward selling a minority stake in the management firm to an outside investor or raising money in some other way. ......
Thu, 20 Dec 2007, 02:01
Reuters
Gold was steady around USD800
an ounce on Thursday despite a firming US dollar, while
platinum dropped but held near a record high on supply
concerns. Thin market conditions meant platinum was prone to sharp
fluctuations after it hit an all-time high of USD1,519 an ounce
on Tuesday on worries of a likely market deficit in 2008.
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Yield Curve Corner
Greenspan's '63 Essay Foretold Subprime Inaction: Jonathan Weil
Bloomberg - USA
19 (Bloomberg) -- Why did Alan Greenspan fail to act while the roots of the subprime-mortgage crisis spread? Here's one possible explanation: The Ayn Rand ...
Bloomberg - USA
19 (Bloomberg) -- Why did Alan Greenspan fail to act while the roots of the subprime-mortgage crisis spread? Here's one possible explanation: The Ayn Rand ...
A Royal 'Be Quiet' Needed
Wall Street Journal - USA
Ben Bernanke is now our Fed chairman. The country owes Mr. Greenspan thanks for his years of public service, but he should now have the good grace and ...
Wall Street Journal - USA
Ben Bernanke is now our Fed chairman. The country owes Mr. Greenspan thanks for his years of public service, but he should now have the good grace and ...
GOLDMAN ASTOUNDS STREET WITH 'INSIDE' TRACK
New York Post - New York,NY,USA
16, Paulson had lunch with Federal Reserve Chairman Ben Bernanke. It was in the early innings of the subprime mortgage crisis and the stock market was ...
See all stories on this topic
New York Post - New York,NY,USA
16, Paulson had lunch with Federal Reserve Chairman Ben Bernanke. It was in the early innings of the subprime mortgage crisis and the stock market was ...
See all stories on this topic
Crisis, What Crisis? (CFO Europe Magazine)
When it comes to dealmaking, the party may be over for private equity. But cash-rich corporate buyers have reason to cheer.
When it comes to dealmaking, the party may be over for private equity. But cash-rich corporate buyers have reason to cheer.
Paulson & Co, the US hedge fund manager that has made more than $3bn (€2bn) for its investors and itself by betting ...
eFinancial News Tue, 18 Dec 2007 9:14 PM PST
Paulson & Co, the US hedge fund manager that has made more than $3bn (€2bn) for its investors and itself by betting on the sub-prime crisis, has recorded a profit in the first financial statements of its European subsidiary.
eFinancial News Tue, 18 Dec 2007 9:14 PM PST
Paulson & Co, the US hedge fund manager that has made more than $3bn (€2bn) for its investors and itself by betting on the sub-prime crisis, has recorded a profit in the first financial statements of its European subsidiary.
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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/TRCdama354_MT.jpg
Northern States share some of their cold anomalies with the South...
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Iranian Situation and Other Man Made Disasters
Rice: Tactical differences remain on Iran
Reuters via Yahoo! News Thu, 20 Dec 2007 12:18 PM PST
There are still tactical differences between major powers about a third U.N. sanctions resolution against Iran over its nuclear program, U.S. Secretary of State Condoleezza Rice said on Thursday.
Reuters via Yahoo! News Thu, 20 Dec 2007 12:18 PM PST
There are still tactical differences between major powers about a third U.N. sanctions resolution against Iran over its nuclear program, U.S. Secretary of State Condoleezza Rice said on Thursday.
The only Iran war is within Iran
The Christian Science Monitor via Yahoo! News Thu, 20 Dec 2007 0:00 AM PST
The world put Iran's Islamic rulers on notice this week, and not for violating nuclear norms. The 192-member United Nations General Assembly voted its "deep concern" over escalating atrocities in Iran, such as stoning, repression of female dissidents, and persecution of human rights defenders.
The Christian Science Monitor via Yahoo! News Thu, 20 Dec 2007 0:00 AM PST
The world put Iran's Islamic rulers on notice this week, and not for violating nuclear norms. The 192-member United Nations General Assembly voted its "deep concern" over escalating atrocities in Iran, such as stoning, repression of female dissidents, and persecution of human rights defenders.
The Persian Gulf: Rising Shia and Uneasy Sunnis
http://www.stratfor.com/products/premium/read_article.php?id=300311
http://www.stratfor.com/products/premium/read_article.php?id=300311
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Opalesque’s Corner
- Hedge fund launches slowed in 2007 for third year in row: 863 new funds, but also less liquidations (408 funds)
- New Launch: Danish firm preps EM multi-strategy hedge fund
- New dual-degree program: NYU, Nobel Prize winner Engle, others launch MBA/MS program to breed `super quants` over Wall Street, student demands
- Performance: Barton Biggs` Traxis hedge fund says dips in November but up over 24% YTD, Shorting subprime: Scion up 137% through November, Atticus counts high cost of fight to deflect Barclays bid for ABN, still up 26% YTD, Comment: Hedge fund monthly reporting in a spin
- Indices: HFRI Fund Weighted Composite Index down -1.93% in November, 9.65% YTD, FoFs Composite Index -1.50%, 9.83%
- M&A: SAC gets Moody`s rating, possible preparation for sale of minority stake, Alpha Strategic, buyer of stakes in independent HF managers, closes in on second deal, Thominvest acquires shares in Finnish hedge fund manager Contango
- Fund Profile: Polar`s macro-style HF finds strength in diversity, Lambert predicts US slowdown will have a more damaging effect on the global economy in the coming months
- Background: How J. Kyle Bass shorted `God I hope you`re wrong` Wall Street: `We were saying (in 2006) that there were going to be $1 trillion in loans in trouble. That had really never happened before. You had to have an imagination to believe us...`
- Markit postpones launch of U.S. home equity asset-backed securities index due to lack of deal data
- People: Highbridge manager retires
- Hedge funds face key man risk (risk that the departure of key executives will lower credit quality), says Moody`s
- Options trading volume surges as institutions, hedge funds hedge and get into dividend capture and put interest plays, Liffe launches daily options on AEX index, Futures Industry Association examines risk management at exchanges as more participants seek direct access
- Pensions: OCERS names finalists for FoHFs mandate
- Credit Crunch Update: Morgan Stanley to sell stake to China`s sovereign wealth fund amid $5.7bln loss, Mack and Cayne to pass on bonuses, Bear to announce first ever quarterly loss, Barclays sues Bear Stearns for over $400m over collapsed hedge funds, Bear to tackle fall in prime brokerage
- Tax Update: Stiff Republican opposition: Hedge funds, private equity avoid US tax increase
- Regulators: FSA tightens lending rules, says banks and building societies must be constrained
- Outlook: Pessimism grows among fund managers-Merrill poll, InvestmentNews` 2008 Investment Outlook Poll: Financial advisers discount a recession, but brace for a turbulent year, Gross: `Mild` recession on horizon, BofE`s fears for economy point to gloomy 2008
- Fitch Ratings Review: Tighter global liquidity will test emerging markets, EM will be unable to remain decoupled if advanced economies slow down which is increasingly likely
- IMF to take up reforms, to discuss best practices for Sovereign Wealth Funds
- Brian Hunter responds to FERC, says his trades did not effect physical gas markets
- Legal News: Sale of Sentinel`s securities approved, trustee looks to raise up to $800m, Ex-Refco exec Maggio pleads guilty to fraud, SEC warns accountants after Mayer Brown/Refco filing, Some Portus investors will get $12.5m (80%), KPMG still looking for more assets, Manor expected back in court
- Commodities: Grains top performing commodity class of 2007, wheat 95% higher, Volatility offers mix of opportunities and dangers in agricultural markets for 2008, Oulook for mining industry, gold, dollar.
- Northern Rock Update: NR moves closer to nationalisation, Wood`s hedge fund builds 10% stake in Northern Rock, Rock fails to put stop to EGM, Brown still hopes to find buyer for Northern Rock, Darling planning bank rescue package
- Event: London firm puts on first football tournament for FoFs, 3rd January
- Investors: German insurer, astute investor takes hedge funds to allowed 5% limit, sees risk of China crash: `may hold up until the Olympics, but then it`s over`
- Swiss private banking group EFG ventures into wealth management in India, buys 75% stake
- Moody`s warns of less stable ratings in Asia
- Activist News: Mumbo! Nelson Peltz buys stake in cheesecake factory, TCI and 3G propose CSX directors, starting proxy battle
- News Briefs: SEC sues Morgan Stanley financial advisers over market timing, Nord Pool plans to start electricity futures index, Investment consultants take on more asset management responsibilities
- ...And finally: Judge sides with man who was fired for posting 'Dilbert' comic on office bulletin board
- Logon: http://www.opalesque.com/main.php?act=archive
- New Launch: Danish firm preps EM multi-strategy hedge fund
- New dual-degree program: NYU, Nobel Prize winner Engle, others launch MBA/MS program to breed `super quants` over Wall Street, student demands
- Performance: Barton Biggs` Traxis hedge fund says dips in November but up over 24% YTD, Shorting subprime: Scion up 137% through November, Atticus counts high cost of fight to deflect Barclays bid for ABN, still up 26% YTD, Comment: Hedge fund monthly reporting in a spin
- Indices: HFRI Fund Weighted Composite Index down -1.93% in November, 9.65% YTD, FoFs Composite Index -1.50%, 9.83%
- M&A: SAC gets Moody`s rating, possible preparation for sale of minority stake, Alpha Strategic, buyer of stakes in independent HF managers, closes in on second deal, Thominvest acquires shares in Finnish hedge fund manager Contango
- Fund Profile: Polar`s macro-style HF finds strength in diversity, Lambert predicts US slowdown will have a more damaging effect on the global economy in the coming months
- Background: How J. Kyle Bass shorted `God I hope you`re wrong` Wall Street: `We were saying (in 2006) that there were going to be $1 trillion in loans in trouble. That had really never happened before. You had to have an imagination to believe us...`
- Markit postpones launch of U.S. home equity asset-backed securities index due to lack of deal data
- People: Highbridge manager retires
- Hedge funds face key man risk (risk that the departure of key executives will lower credit quality), says Moody`s
- Options trading volume surges as institutions, hedge funds hedge and get into dividend capture and put interest plays, Liffe launches daily options on AEX index, Futures Industry Association examines risk management at exchanges as more participants seek direct access
- Pensions: OCERS names finalists for FoHFs mandate
- Credit Crunch Update: Morgan Stanley to sell stake to China`s sovereign wealth fund amid $5.7bln loss, Mack and Cayne to pass on bonuses, Bear to announce first ever quarterly loss, Barclays sues Bear Stearns for over $400m over collapsed hedge funds, Bear to tackle fall in prime brokerage
- Tax Update: Stiff Republican opposition: Hedge funds, private equity avoid US tax increase
- Regulators: FSA tightens lending rules, says banks and building societies must be constrained
- Outlook: Pessimism grows among fund managers-Merrill poll, InvestmentNews` 2008 Investment Outlook Poll: Financial advisers discount a recession, but brace for a turbulent year, Gross: `Mild` recession on horizon, BofE`s fears for economy point to gloomy 2008
- Fitch Ratings Review: Tighter global liquidity will test emerging markets, EM will be unable to remain decoupled if advanced economies slow down which is increasingly likely
- IMF to take up reforms, to discuss best practices for Sovereign Wealth Funds
- Brian Hunter responds to FERC, says his trades did not effect physical gas markets
- Legal News: Sale of Sentinel`s securities approved, trustee looks to raise up to $800m, Ex-Refco exec Maggio pleads guilty to fraud, SEC warns accountants after Mayer Brown/Refco filing, Some Portus investors will get $12.5m (80%), KPMG still looking for more assets, Manor expected back in court
- Commodities: Grains top performing commodity class of 2007, wheat 95% higher, Volatility offers mix of opportunities and dangers in agricultural markets for 2008, Oulook for mining industry, gold, dollar.
- Northern Rock Update: NR moves closer to nationalisation, Wood`s hedge fund builds 10% stake in Northern Rock, Rock fails to put stop to EGM, Brown still hopes to find buyer for Northern Rock, Darling planning bank rescue package
- Event: London firm puts on first football tournament for FoFs, 3rd January
- Investors: German insurer, astute investor takes hedge funds to allowed 5% limit, sees risk of China crash: `may hold up until the Olympics, but then it`s over`
- Swiss private banking group EFG ventures into wealth management in India, buys 75% stake
- Moody`s warns of less stable ratings in Asia
- Activist News: Mumbo! Nelson Peltz buys stake in cheesecake factory, TCI and 3G propose CSX directors, starting proxy battle
- News Briefs: SEC sues Morgan Stanley financial advisers over market timing, Nord Pool plans to start electricity futures index, Investment consultants take on more asset management responsibilities
- ...And finally: Judge sides with man who was fired for posting 'Dilbert' comic on office bulletin board
- 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….
100 arrested for not having toilets
December 19, 2007 09:47 AM ET
KAMPALA (Reuters) - Local authorities have arrested at least
100 Ugandans for failing to build toilets in their homes in
the midst of a cholera epidemic that has killed 8 people and
infected 164, state media reported Wednesday.
http://links.reuters.com/r/99L0Y/T0OEI/JAW90/VBHMQ/XKHR7/YT/t
December 19, 2007 09:47 AM ET
KAMPALA (Reuters) - Local authorities have arrested at least
100 Ugandans for failing to build toilets in their homes in
the midst of a cholera epidemic that has killed 8 people and
infected 164, state media reported Wednesday.
http://links.reuters.com/r/99L0Y/T0OEI/JAW90/VBHMQ/XKHR7/YT/t
tocsin TOCK-sin, noun:
1. An alarm bell, or the ringing of a bell for the purpose of alarm.
2. A warning.
2. A warning.
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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)
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Regulatory Info
investor.info@sfc.hkhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
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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
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