Dear Reader

I hope you all had a Merry Christmas. After one day off, we are back at it. We hope the disruption did not inonvenience you.

Regards

 

Senior Editor

Ken Akoundi

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Main News

 

Wells Fargo's recent home-equity missteps, combined with the worsening housing market, make it appear unlikely that the bank can avoid a tough year ahead as it builds reserves for bad loans.
http://online.wsj.com/article/SB119871715330351693.html?mod=djemheard

 

 

History lessons
Investors will be watching politics as well as price-earnings ratios next year
Full article

 

Technology in 2008
Three fearless predictions
Full article

 

Hedge Fund Alpha: Is the Sky the Limit?
Source: Seeking Alpha
Apparently, the universe is big. Really big. We learned last week that it holds about 10^80 atoms. But how big is the alpha universe? How much alpha can possibly be generated by hedge funds (or any active manager)? Neither universe is easy to get your head around and neither can be measured directly. More... <http://www.hedgefund-index.com/newstoday.asp>

 

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>

 

Contrarians Beware: Putin May Mark the Top of Emerging Markets
Will this Time Person of the Year point to a market top like eight years ago?
http://online.barrons.com/article/SB119819178544143345.html?mod=djemBF

 

Singapore's Quiet Giant Meet Merrill Lynch's new partner. Read More

 

 

Pacificor Hedge Fund's Klein Is Killed in Plane Crash (Update3)
Bloomberg.com Wed, 26 Dec 2007 11:58 AM PST
Dec. 26 (Bloomberg) -- Michael Klein, the owner of California hedge-fund firm Pacificor LLC, his teenage daughter, Talia, and a pilot died after their private plane crashed near Panama's tallest mountain.

 

Our Fiscal Problems Outlined:

by Lawrence York

 

 

[PDF]

 

CalPERS to shift $44 billion <http://e.ccialerts.com/a/hBHcnUeAMtqiZAMuTGFAWyfiTPJ/in31>
SACRAMENTO, Calif. - CalPERS' new asset allocation will shift some $44 billion, or nearly 18% of the total portfolio, into international equity and alternative strategies. The changes represent the...

Hermes splits to survive <http://e.ccialerts.com/a/hBHcnUeAMtqiZAMuTGFAWyfiTPJ/in36>
LONDON - Hermes Pensions Management Ltd., one of the U.K.'s last remaining in-house pension fund investment arms, is trying to ensure its long-term survival as a money manager.To that end, Rupert ...

 

2007 Databook <http://e.ccialerts.com/a/hBHcnUeAMtqiZAMuTGFAWyfiTPJ/in45>
Welcome to Pensions & Investments' seventh annual Databook.In the following pages, readers will find a collection of charts, tables and statistics on a variety of investment management subjects....

 

 

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Yield Curve Corner

 

 

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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/DSTmiddleeast360_MO.jpg

 

Japan: Offshore Earthquake
December 25, 2007 1553 GMT
A Magnitude 6.0 earthquake hit northern Japan 62 miles north of the city of Sendai, the U.S....
http://www2.stratfor.com/sitrep/japan_offshore_quake

 

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Iranian Situation and Other Man Made Disasters

 

Iran's Larijani urges Egypt not to rush renewal of ties: report
AFP via Yahoo! News Wed, 26 Dec 2007 11:30 AM PST
Iran's former nuclear negotiator Ali Larijani, an adviser to his country's supreme leader Ayatollah Ali Khamenei, urged Egypt on Wednesday not to rush renewing relations between Cairo and Tehran, the official MENA news agency said.

 

Iran, Malaysia sign $16 billion oil deal
AP via Yahoo! News Wed, 26 Dec 2007 6:50 AM PST
Iran and Malaysia signed a $16 billion agreement to develop two Iranian gas fields, state-run television reported Wednesday, describing the deal as the largest energy contract in Iran.

 

Horses and hunger, an American woman's life in Iran
Reuters via Yahoo! News Wed, 26 Dec 2007 11:20 AM PST
American Louise Firouz made Iran her home half a century ago. Now 75, she runs a stud farm in the remote northeast and has watched the turbulent transformation of her adopted country from U.S.-ally to arch foe.

 

Russia to supply Iran with new defense
AP via Yahoo! News Wed, 26 Dec 2007 9:42 AM PST
Iran's defense minister said Wednesday that Russia is preparing to deliver powerful new air defense systems that would dramatically increase his nation's ability to repel an attack.

 

Iran, U.S.: A Diplomatic Stalemate and Iraqi Stability
December 24, 2007 1857 GMT
Iran has rejected U.S. preconditions to direct negotiations, Iranian Foreign Minister Manouchehr Mottaki said Dec. 24.
http://www2.stratfor.com/analysis/iran_u_s_diplomatic_stalemate_and_iraqi_stability

 

Iran Ups The Ante
Investor's Business Daily via Yahoo! News Mon, 24 Dec 2007 3:24 PM PST
Iran: Accidents happen, no doubt about it. But every so often we let them happen, only to deeply regret it later. That's called foolishness. Such is the case with western policy toward a nuclear Iran.

 

Iran, U.S.: A Diplomatic Stalemate and Iraqi Stability
December 24, 2007 1857 GMT
Iran has rejected U.S. preconditions to direct negotiations, Iranian Foreign Minister Manouchehr Mottaki said Dec. 24.
http://www2.stratfor.com/analysis/iran_u_s_diplomatic_stalemate_and_iraqi_stability

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Opalesque’s Corner

 

 

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Misc. Items of Interest

 

The Savage Silencing of Mexico's Musicians
Killings Bear Hallmarks Of Drug Cartel Hitmen
(By Manuel Roig-Franzia, The Washington Post)

 

 

 

 

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Funnies, Facts, Quotes, etc….

 

hermitage HUHR-muh-tij, noun:

1. The habitation of a hermit or group of hermits.
2. A monastery or abbey.
3. A secluded residence; a retreat; a hideaway.
4. (Capitalized) A palace in St. Petersburg, now an art museum.

 

 

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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.