Main News

 

Elgin fund blocks withdrawals after losses on leveraged loans
The flagship hedge fund of Elgin Capital, the $3.3bn (?2.3bn) London credit specialist, has become the latest to block withdrawals after big losses on leveraged loans.  (Financial Times)
http://mail2.efnmail.co.uk/r/333984/MTk4MTI1OjE2MTY4/

 

Gulf's overseas assets set to top $2,000bn
The net foreign assets of Gulf Arab states are set to rise to more than $2,000bn (?1,366bn) by the end of this year on rocketing oil prices, a new research by the Institute of International Finance showed.  (Financial Times)
http://mail2.efnmail.co.uk/r/333987/MTk4MTI1OjE2MTY4/

 

WHAT'S IN STORE FOR GLOBAL BANKING
Banking around the world may now be passing through a major cyclical
correction, but McKinsey research suggests that the industry's revenues and
profits will double by 2016.
http://e.mckinseyquarterly.com/W0RT011A698CC32CE4E1934C397B50

 

UP AND DOWN WALL STREET DAILY  By RANDALL W. FORSYTH
From "2-and-20" to 2.50%: How the Investment World Has Changed
As the reality of the U.S. consumer recession sets in, markets dial back their expectations. Return of capital triumphs.
http://online.barrons.com/article/SB120043577780392359.html?mod=djemBF

 

We usually end each year with an annual MBS roundup, but this time I decided to change the focus. It is hard to add much to what everyone knows. I heard that linguists announced “subprime” to be the word of 2007. It was a disastrous year for holders of long positions in MBS. After thundering losses, the non-agency MBS market froze and marks became uncertain. Agency MBS, especially hybrid ARMs, widened considerably to agency debentures, despite of having similar credit. Many investors liquidated MBS positions to raise cash.

Full Story...

 

 

After the Credit Boom, Banks And Brokers Face A Sobering Year In 2008
While warning signs of excessive expansion had been flashing, the downturn now roiling the financial sector is unsettling because it comes in the context of relatively strong global economic growth and historically low corporate default rates. The turning point was last summer, when issuance volumes in many segments of the debt markets dried up, credit spreads widened, and money market liquidity abruptly tightened. We believe the slump in the sector will continue through 2008 and into 2009.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQATCUQAVsLgHxhilpuHQJhuV2VA

 

Thain Says CDO Market Is Not Coming Back
DealBreaker.Com - New York,NY,USA
Bearish skeptics of the CDO write-downs have raised concerns that Wall Street banks may still be too confident that the market for CDOs will recover soon. ...

 

Bank of NY Mellon profit falls 72 pct, CDOs hurt
Guardian Unlimited - UK
The bank took a charge of $118 million, or 10 cents per share, to write down 47 percent of the value of some CDOs, a complex security often tied to ...

 

 

 

by Felix Salmon

 

by Bespoke Investment Group

by David Merkel

 

by Colin Peterson

 

 

Shiller: New York Housing Market to Crash, Too
Yale economist Robert Shiller, who predicted the 2000 stock market crash and the current real estate crash has news for Manhattan: You're not immune. In a lengthy interview, the professor scoffs at the idea that, while the rest of the country implodes, Manhattan real estate will just keep jumping 10% a year. Shiller likens the city to ancient Rome before the fall and says the crash is only a matter of time.

 

Bank Of America To Cut 650 Jobs; Shut CDO Unit "Bank of America Corp. (BAC) said Tuesday that it will cut 650 jobs from its corporate and investment bank, many of them in New York, and sell its prime brokerage unit. The bank is exiting its collateralized debt obligation business, which is a subset of the structured products business, and will also reduce investment banking in Europe and the U.S. The job cuts represent around 12% of the unit’s staff, and come on top of an internal review first announced in October. BAC CEO Kenneth Lewis said the cuts are in addition to previous plans to lay off 3,000 people, including 500 in the corporate and investment bank divisions." (Crain's NY Business, Jan. 15th)

 

NEW YORK (HedgeWorld.com)—Charles Winkler, the former chief operating officer at defunct hedge fund Amaranth Advisors LLC, joined Hudson Bay Capital Management LP, a $350 million multi-strategy hedge fund run by former proprietary trader Sander Gerber. ......

 

BlueBay Shares Tumble Below IPO Price

LONDON (HedgeWorld.com)—Shares in BlueBay Asset Management Ltd., one of Britain's biggest hedge fund operators with around $15 billion in assets under management, slid nearly 10% Wednesday [Jan. ......

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Yield Curve Corner

 

by Barry Ritholtz

 

Bernanke Backs Calls for Quick Action
BusinessWeek - USA
Critics say it's too little, too late by Dawn Kopecki Federal Reserve Chairman Ben Bernanke threw his support behind quick and temporary tax breaks, ...

 

Bernanke Is Mistaken for Paulson Before Congress (Update1)
Bloomberg - USA
17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke discovered that an Ivy League career just doesn't leave the same impression as a Wall Street ...

 

Ben Bernanke's Goldman-Sachs secret
Salon - USA
On Thursday, she distinguished herself once again while questioning Federal Reserve Chairman Ben Bernanke during a Committee on the Budget hearing. ...

 

Bernanke: A Wise Man at the Fed
Conde Nast Portfolio - New York,NY,USA
Portfolio contributing editor Roger Lowenstein has an excellent profile of Ben Bernanke in the NYT this weekend; it hit the web today. ...

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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/FSHShawaii017_MO.jpg

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Iranian Situation and Other Man Made Disasters

 

 

Germany set on halting Iran nuclear arms
AP via Yahoo! News Thu, 17 Jan 2008 7:58 AM PST
Germany's foreign minister said Thursday that the international community remains determined to prevent Iran from developing technology for nuclear weapons, despite U.S. assessments saying Tehran has stopped working on an arms program.

 

Germany set on halting Iran nuclear arms
AP via Yahoo! News Thu, 17 Jan 2008 7:58 AM PST
Germany's foreign minister said Thursday that the international community remains determined to prevent Iran from developing technology for nuclear weapons, despite U.S. assessments saying Tehran has stopped working on an arms program.

 

 Sailfish Credit Hedge Fund Loses Half Its Assets, Investors Say

 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=arjfqsK7m2ls

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Opalesque’s Corner

 

- Singapore invests $300mln in US property hedge fund
- Opalesque Exclusive: FoHFs veteran on the evolution of the sector and of his own 20-year old group
- Opalesque Exclusive: US hedge fund returns 34.9% through `positive activism` as `trusted partners and CEO allies`
- Opalesque Exclusive: African index tracker and trade finance funds end 2007 on positive note
- Opalesque Exclusive: Belgium firm introduces `enhanced` FX trading system, more profits by extending holding period, Alphadyne to introduce fixed-income hedge fund,  Schroders launches alternatives fund aiming at pension fund demand for diversification
- Performance: Liongate FoFH up double-digits in 2007, Matrix funds of hedge funds deliver strong second-half dividends
- BlueBay shares tumble below IPO price
- Elgin HF blocks withdrawals after big losses on leveraged loans, Fairfield liquidates multi-strategy arbitrage fund, Mercury`s real estate hedge fund restricts redemptions, FT Comment: Basis Yield creditors suffer setback after US court ruling, the case could have implications for other hedge funds
- Institutions: Ohio pension fund is looking for market-neutral alpha strategies for $375m mandate, John Lewis seeks market neutral managers, ABP says alternatives best returning asset class in 07 (up to 31%), College endowments post 16.9% return, strongest since 2000, now have around 42% of assets in A.I.
- Indices:  HFRI Fund Weighted Composite Index up 0.61% in December, 10.24% YTD, FoF Composite up 0.28%, 10.12% YTD, Nordic Hedge Fund Index (NHX) up 0.24% in December, meager 2.82% YTD
- People: GAM`s co-manager of $5bl in FoHF portfolios joins specialist derivatives consultant Cardano, Update: Ex-Amaranth COO joins New York hedge fund, Ex-Merrill Lynch Americas CIO joins Gottex, Paula Sugawara joins Tokyo`s Hunter Capital to head personnel consultation services, Macquarie hires CIBC`s hedge fund specialist Alex Ball, expands hedge fund coverage, Bloomberg picks hedge fund manager to run his billions, fueling presidential speculation, UK FSA begins search for new chairman
- Legal: Bingham alerts hedge funds to best practices to consider as 2008 begins, Clearing house sued by irate investors
- New research paper says common assumptions on correlations (`equity is long correlation`) can lead to dramatically incorrect CDO valuations
- Comment: Holdings analysis shows investors how funds of funds produce returns
- Credit Crunch Update: The three risks Merrill`s investors might face after the capital injection, JP Morgan posts profit despite sub-prime hit, Comment: What does Goldman know that we don`t?
- Exchanges:  CBOT members have no CBOE membership rights, NYSE`s purchase of Wombat response to Nasdaq-OMX?, NASDAQ largest U.S. stock exchange in 2007
- Environmental Trading News: After a brief look out of the window, Hong Kong Exchange plans emissions trading center
- Commodities: Interview with `Trader Vic`: Chinese masses to push up Gold further
- Middle-East: Gulf states` foreign assets to top $2,000bl by year end on rocketing oil prices, GCC rents, property to rally 20% this year, Dow Jones Indexes wins Best Islamic Index Provider award
- Asia: Goldman report revises India GDP growth down to 7.8%, export growth to halve to 9.8% due to Rupee appreciation and global slowdown,  Merrill Survey: China growth expectations lowest since 2004, Emerging markets feel drag of U.S. as indexes come down
- Firm offers weather derivatives trading `starter kit` including MDA Earthsat weather and risk management systems, combined service to drive expansion market
- Activist News: SRM Global boosts stake in Virgin Media, K Capital says Sun-Times should reduce board
- News Briefs:  Countrywide says helped avert 81,000 foreclosures by restructuring loans, Wachovia Wealth Management expands, Brookfield buys balance of Boston buildings for $477m, Bloomer signs first Lucida deal with BoI`s life assurance arm, Abu Dhabi`s new Islamic bank to open by June, Russell adds Plato`s 130/30 fund to Australian Opportunities Fund`s portfolio
- And Finally. Dozens in Texas town ( including a pilot, county constable and business owners)  report seeing UFOs
- 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….

 

upbraid uhp-BRAYD, transitive verb:

To scold or criticize harshly.

 

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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.