Main News

 

Citi’s $19bn CDO writedown
FT Alphaville - London,UK
The last column in particular: over three short months, GS is saying that Citi’s super senior CDO exposures - supposedly safer than AAA - have declined in ...

 

Citigroup May Write Down $12 Billion, Bernstein Says (Update2)
Bloomberg - USA
The market for CDOs, loans packaged into new securities, dried up after surging subprime mortgage defaults led to rating downgrades and convinced many ...

 

Wrong Turn at State Street Investment chief quits firm after losses. Read More

 

Thursday , 03 Jan 2008
With a NYMEX price of $861.30/oz, gold broke a 28-year record Wednesday as oil smashed through the $100 barrel barrier. Gold stocks and platinum also benefited from the price surge.

 

THE STRIKING PRICE DAILY
Volatility Likely to Remain High in 2008
But more volatility is not necessarily a harbinger of lower stock prices.
http://online.barrons.com/article/SB119915343827260141.html?mod=djemBF

 

The Big 10: Top Hedge Fund Trades of 2007 Partners
Source: PR Newswire
Even though 2007 proved a turbulent year for some hedge funds, others were able to expertly play the market to their advantage. Dow Jones Hedge Fund Trades, which is the only publication dedicated to covering the activity and trading strategies of hedge funds, highlighted 10 of the year's very best trades in its second annual set of rankings released this week. More... <http://www.hedgefund-index.com/newstoday.asp>

 

Goldman Sachs narrowly beats Morgan Stanley as top M&A adviser 2007
Source: CNNMoney.com
Goldman Sachs (NYSE:GS) Group Inc's corporate finance team leads the league table of financial M&A advisers as it recorded advisory mandates for deals with a total rank value of more than 1.4 trillion usd last year, according to data released by Thomson (NYSE:TOC) Financial. More... <http://www.hedgefund-index.com/newsriskarb.asp>

 <http://www.hedgefund-index.com/newsriskarb.asp> Wall St M&A fees seen dropping 20 percent in 2008
Source: Reuters
Wall Street's fees for brokering mergers and acquisitions are likely to drop about 20 percent this year, reflecting a weaker economy and the difficulty of financing for leveraged buyouts, Sanford Bernstein analyst Brad Hintz said on Thursday. More... <http://www.hedgefund-index.com/newsriskarb.asp>

 

 Thain Makes Like Komansky in Pledging to End Subprime Orgy
 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aSKu9VepS5_8

 

In Unforgiven Margin Call, Bear Funds Failed on Merrill CDOs
 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aT2LrbPYb7wU

 

Unless you’ve been living on a different planet the past year or so… or perhaps limiting your reading habits to US Weekly, you are aware of the fact that the US housing market is a complete and utter mess. And don’t think that the ball dropping will make the headlines disappear in 2008.

Full Story...

 

INFORMATION TECHNOLOGY | EIGHT BUSINESS TECHNOLOGY TRENDS TO WATCH
Many markets and industries will be transformed by eight emerging technology
trends that are changing the way businesses manage relationships, assets, and
information. To benefit, companies must understand not only the technologies
but also their business implications and the management changes they require.
Learn more by reading "Eight business technology trends to watch." [Audio
included]
http://e.mckinseyquarterly.com/W0RT0160C057832CE4E1937140C800

 

Economic Studies | TAKING STOCK: TEN YEARS AFTER THE ASIAN FINANCIAL CRISIS
The Asian financial system could become a full-fledged economic powerhouse, but
only if its regulatory systems, economic ministries, and financial institutions
improve dramatically.
http://e.mckinseyquarterly.com/W0RT0160C027A32CE4E1937140C800

 

THE PROSPECTS FOR BIOFUELS
Companies, farmers, and investors are gambling that biofuels will help meet the
world's energy needs, cut greenhouse gas emissions, and generate substantial
profits. Are these hopes realistic?
http://e.mckinseyquarterly.com/W0RT0160C096F32CE4E1937140C800

 

Edwards' October 29, 2007, speech on his generation's moral test
01/02/08 04:52 PM, EST
Many of you know that I am the son of a mill worker -- that I rose from modest means and have been blessed in so many ways in life. Elizabeth and I have so much to be grateful for.
FULL STORY <http://www.cnn.com/2007/POLITICS/12/21/edwards.trans.moraltest/index.html> 

 

NEW YORK (Reuters)—Investing in distressed securities is likely to be a top-performing strategy in 2008, a survey of hedge fund managers released on Wednesday [Jan. 2] found. ......

 

Convertibles Blow the Top Off in '07
Lower costs for companies, hefty fees for underwriters, and attractive results for investors combined to make this year a record-setter for convertible bonds.

 

Special Report

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

 

Bush Meeting With Bernanke, Paulson Before Speech
CNBC - Englewood Cliffs,NJ,USA
By Reuters | 03 Jan 2008 | 11:10 AM ET President Bush will meet Friday with Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and top ...

 

Bernanke, King Risk Inflation Hangover to Extend Growth Party
Bloomberg - USA
3 (Bloomberg) -- Ben S. Bernanke, Mervyn King and fellow central bankers may go on filling up the world economy's punch bowl in 2008, even at the risk of an ...

 

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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/STMusnortheast003_MO.jpg

 

2008: America is where the action is on climate change
January 3, 2008 1510 GMT
Bart Mongoven says that the discussion on climate change has switched to the US, where fear of...
http://www.stratfor.com/podcast/2008_america_where_action_climate_change

 

The 2007-2008 Winter Season is progressing thematically on cue with our original research expectations, with the following meteorological benchmarks and climate characteristics being met thus far.

Full Story...

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Iranian Situation and Other Man Made Disasters

 

Khamenei says Iran ties with US possible
AP via Yahoo! News Thu, 03 Jan 2008 11:41 AM PST
Iran's supreme leader said Thursday that he was willing to restore diplomatic relations with the United States but doing so now would make his country more vulnerable to U.S. espionage.

 

Iran hangs convicted child abuser
AFP via Yahoo! News Thu, 03 Jan 2008 5:23 AM PST
Iran hanged a man on Thursday who had been found guilty of severely torturing and raping a 12-year-old boy in the western city of Hamedan, the state news agency IRNA reported.

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Opalesque’s Corner

 

- Opalesque Exclusive: New paper: Is Managed Futures an Asset Class? The Search for the Beta of Commodity Futures, research suggests financial models have shortcomings when analyzing the commodity futures markets
- Research says highest likelihood of hedge fund failure (1% per month or 12% per annum) reached in fund`s fifth year of life
- Garden State plots hedge fund, PE commitments
- South African Hedge Fund Index returns 15.56% to November, Distressed investing seen as top 2008 performer
- Hedge funds expect more institutional clients
- Och-Ziff Capital Management initiated with overweight
- Adviser calls for tougher hedge fund code, asks for independent administration and standardised valuation guidelines
- People: M.D. Sass hires Pequot`s Daniel Fishbane as Senior Vice President and Chief Financial Officer, Update: Absolute Capital finance director Sisk resigned after being `frozen out`
- GTAA gains popularity as schemes aim to diversify assets and cut deficits,  Opalesque Exclusive: ABN Amro experts publish book on GTAA
- Background: A Burden of Wealth:  Choosing a family office is anything but easy these days
- (More) talking about ETFs: Interview with top Barclays executive
- Young hedge fund `veteran` caught in self-promoting his new charity venture GiveWell
- Ritchie says not on verge of insolvency, provided detailed information on sale of a fund, Ritchie defends hedge fund, warns investors legal action could `damage value`
- SEC suffers new setback in attack on PIPE abuses, judge dismisses Gryphon suit
- Societe Generale/Fimat and Calyon launch new brokerage subsidiary Newedge, expect IPO within next 2 years
- Mutual funds now stand at $13tln after record inflows, investors up 10% in 07
- Wien predicts recession, 10% stock correction in U.S., Troubled Company Index remains near highest level since May 2005, Gold near record as crude oil gain, weak dollar lure investors, can reach $900 but sharp falls threat, Emerging market assets become safe-haven outperformers in 07
- Events: London New Year networking event today 8pm, drinks and FoF football tournament
- PGGM appoints ethical advisers for climate change, human rights and arms industry
- SEBI: Institutional investors can short-sell from Feb 1, Comment: Short sellers will make Indian market stronger
- Indian wealth management market set to explode, US$1 trillion market by 2012
- China overtakes U.S. in manufacturing output, surpasses Japan as #2 auto market, oil importer, A few % each year: China shows new FX policy with `mini-revaluation`
- Citadel eyeing investment in  Australia`s struggling Centro Properties Group
- News Briefs: CFTC budget gets 14% boost ,  New York IPOs eclipse LSE for first time in 3 years, Eurex grows 25% YoY
- ...And finally: After discovering a 300% return on investment, Seattle adds 450% more red-light cameras
- Logon: http://www.opalesque.com/main.php?act=archive

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Misc. Items of Interest

Gold Value of Apartments Sinks
New Reports See Spike in Dollar Terms
BY JULIE SATOW - Staff Reporter of the Sun
The value of apartments in Manhattan is plummeting, even as the price of apartments in dollar terms has, according to several reports by real estate firms, soared to record highs. The average value of a Manhattan apartment over the past six years...

 

Colon cancer risk traced to common ancestor
January 02, 2008 08:49 AM ET
LONDON (Reuters) - A married couple who sailed to America from
England around 1630 are the reason why thousands of people in
the United States are at higher risk of a hereditary form of
colon cancer, researchers said on Wednesday.
http://links.reuters.com/r/99L0Y/SOV27/0R1OQ/FI9SR/U40FF/YT/t

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Funnies, Facts, Quotes, etc….

 

arcanum r-KAY-nuhm, noun;
plural arcana -nuh:

1. A secret; a mystery.
2. Specialized or mysterious knowledge, language, or information that is not accessible to the average person (generally used in the plural).

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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.