Archive: 01/29/2008
Main News
The Blowup Artist
Jonathan Hoenig
Vanity, not greed, brought down SocGen trader Jerome Kerviel.
http://www.smartmoney.com/t.cfm?pId=7&mID=362&mDt=01/28/2008&ui=1157312&ctu=%2Ftradecraft%2Findex%2Ecfm%3Fstory%3D20080128%2DSocGen%2Dtrader%2DJerome%2DKerviel
Jonathan Hoenig
Vanity, not greed, brought down SocGen trader Jerome Kerviel.
http://www.smartmoney.com/t.cfm?pId=7&mID=362&mDt=01/28/2008&ui=1157312&ctu=%2Ftradecraft%2Findex%2Ecfm%3Fstory%3D20080128%2DSocGen%2Dtrader%2DJerome%2DKerviel
SocGen accused of Smokescreen - Forced to Unravel ‘exceptional fraud’
Financial Times - Monday January 28, 09:56 GMT
Financial Times - Monday January 28, 09:56 GMT
Lessons from SocGen's ?5bn trading scandal
It is almost as tempting to read too much into the ?4.9bn trading losses at Société Générale last week as it is to treat it as a devastating but isolated event and sweep the affair under the carpet. While the early evidence points to an elaborate fraud and the catastrophic failure of the French bank's internal controls, it is clear there are lessons to be learnt for the rest of the industry.
http://mail2.efnmail.co.uk/r/336184/MTk4MTI1OjE2MjU2/
It is almost as tempting to read too much into the ?4.9bn trading losses at Société Générale last week as it is to treat it as a devastating but isolated event and sweep the affair under the carpet. While the early evidence points to an elaborate fraud and the catastrophic failure of the French bank's internal controls, it is clear there are lessons to be learnt for the rest of the industry.
http://mail2.efnmail.co.uk/r/336184/MTk4MTI1OjE2MjU2/
Rogue trader was offered massive bonus. Jerome Kerviel, the trader at the centre of SocGen’s (SOCGP.PK) €4.9B in trading losses, told police he was guaranteed a €300,000 bonus for his record year in 2007, while he asked for double that. This makes SocGen's position that Kerviel was a junior trader with no directional trading permission increasingly shaky.
Death of VaR Evoked as Risk-Taking Vim Meets Taleb's Black Swan
Monday , 28 Jan 2008
Average reader prediction for the gold price high point this year is $1129, while the London Bullion Market Association’s experts predict a 2008 high of $1009. There are now 11 months left to see in Mineweb readers can again heavily outperform the LBMA professionals
Average reader prediction for the gold price high point this year is $1129, while the London Bullion Market Association’s experts predict a 2008 high of $1009. There are now 11 months left to see in Mineweb readers can again heavily outperform the LBMA professionals
Hedge Funds Still Gratify
Barron's - USA
By ERIC UHLFELDER ALL OF A SUDDEN, 2007 DOESN'T SEEM LIKE such a bad year for hedge-fund investors. AIG's hedge-fund strategist Robert Discolo, who oversees ...
See all stories on this topic
Barron's - USA
By ERIC UHLFELDER ALL OF A SUDDEN, 2007 DOESN'T SEEM LIKE such a bad year for hedge-fund investors. AIG's hedge-fund strategist Robert Discolo, who oversees ...
See all stories on this topic
Hedge funds find there is nowhere to hide
Financial Times - London,England,UK
Hedge funds are on track for their worst month since the Russian default of 1998 – which brought down Long Term Capital Management – with the average fund ...
Financial Times - London,England,UK
Hedge funds are on track for their worst month since the Russian default of 1998 – which brought down Long Term Capital Management – with the average fund ...
Hedge fund group Cap Z names Calpers executive as CEO
Source: Reuters
Hedge fund group Capital Z Asset Management, which last week spun off from its parent, on Monday hired a top investment adviser from Calpers, America's biggest pension fund, as its chief executive officer, the fund and Capital Z said. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: Reuters
Hedge fund group Capital Z Asset Management, which last week spun off from its parent, on Monday hired a top investment adviser from Calpers, America's biggest pension fund, as its chief executive officer, the fund and Capital Z said. More... <http://www.hedgefund-index.com/newstoday.asp>
New Jersey Investment Council seeks private partners
New Jersey Investment Council, one of the biggest state pension funds in the US, is spearheading a plan to form investment consortiums with pension plans, endowments and sovereign wealth funds in an effort to gain favourable terms on public and private deals. (Financial Times)
http://mail2.efnmail.co.uk/r/336309/MTk4MTI1OjE2MjU4/
New Jersey Investment Council, one of the biggest state pension funds in the US, is spearheading a plan to form investment consortiums with pension plans, endowments and sovereign wealth funds in an effort to gain favourable terms on public and private deals. (Financial Times)
http://mail2.efnmail.co.uk/r/336309/MTk4MTI1OjE2MjU4/
Barron's Roundtable Update: Where Do We Go From Here? <http://seekingalpha.com/article/61732-barron-s-roundtable-update-where-do-we-go-from-here?source=i_email>
by SA Editor Eli Hoffmann <http://seekingalpha.com/author/eli-hoffmann?source=i_email>
by SA Editor Eli Hoffmann <http://seekingalpha.com/author/eli-hoffmann?source=i_email>
Felix Zulauf: 4 Ways to Profit in 2008 - Barron's <http://seekingalpha.com/article/61764-felix-zulauf-4-ways-to-profit-in-2008-barron-s?source=i_email>
Marc Faber: Short Emerging Markets - Barron's <http://seekingalpha.com/article/61767-marc-faber-short-emerging-markets-barron-s?source=i_email>
Archie MacAllaster's Seven Stock Picks for 2008 - Barron's <http://seekingalpha.com/article/61768-archie-macallaster-s-seven-stock-picks-for-2008-barron-s?source=i_email>
Greenwich Report Warns: Don't Ignore Hedge Funds
Source: FINalternatives
U.S. companies should be adjusting their investor relations strategies to cater to the growing influence of hedge funds, according to new research from Greenwich Associates. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: FINalternatives
U.S. companies should be adjusting their investor relations strategies to cater to the growing influence of hedge funds, according to new research from Greenwich Associates. More... <http://www.hedgefund-index.com/newstoday.asp>
by Felix Salmon
Positive Monoline News Tightens Credit
Spreads whipped around last week, hitting new wides as buyers loaded up on protection buying before settling down on positive news regarding the monolines.Read more
Spreads whipped around last week, hitting new wides as buyers loaded up on protection buying before settling down on positive news regarding the monolines.Read more
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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/TRCfamegula028_MT.jpg
US BIRD FLU TESTS HIGHLIGHT NEED FOR MORE PLANNING
US regulators are urging banks to develop contingency plans for dealing with a widespread outbreak of avian flu after a planning exercise conducted last year found that more than one-third of participants had no business continuity strategies in place.
More on this story: http://www.finextra.com/fullstory.asp?id=18002
US regulators are urging banks to develop contingency plans for dealing with a widespread outbreak of avian flu after a planning exercise conducted last year found that more than one-third of participants had no business continuity strategies in place.
More on this story: http://www.finextra.com/fullstory.asp?id=18002
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Iranian Situation and Other Man Made Disasters
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Outside View: Getting tougher on Iran UPI Mon, 28 Jan 2008 8:28 AM PST At their meeting in Berlin, the Iranian Six -- the five permanent members of the U.N. Security Council plus Germany -- have finally agreed on a Security Council draft resolution on Iran. |
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Opalesque’s Corner
- Hedge funds down so far in January, however only 1/3 of market losses, winners and losers, Crisis grips European hedge funds
- Performance: Opalesque Exclusive: PharmaInvest Fund up 43.4% in 2007, Old Hill hit with redemptions, Chinese hedge funds under pressure due to recent sell-off, Eddington Triple Alpha Fund outperformed peer group in 2007: 17.21% (est.), Hedge funds still gratify: AIG`s Discolo reports the selected HFs met performance goals in 2007, LJM reaps returns on both sides of options markets
- EuroHedge Awards: GLG, Odey, Brevan Howard funds lead winners at EuroHedge Awards, Sloane Robinson wins Management Firm of the Year award, Peloton won two awards, `World coming to an end` bet returned 87% in 2007
- Opalesque Exclusive: Russia hedge fund annualises 28%, Russia to do well `either way`
- Friday rumor: Rumor of hedge fund collapse circulated through trading rooms on Friday, affected markets, Worries focus on quant funds, but Numeric Investors denies problems, Amsterdam shares close lower following hedge fund rumors
- Fund launches: SkyBridge Capital launches emerging manager HF, Gemstone Financial Group launches new hedge fund, RMF looks for new managers for its FoHF portfolio, State Street Global Advisors launches 130/30 mutual fund, Satellite Asset Management energy experts to launch L/S equity fund, Harcourt, Scandinavian insurers to launch global FoHF
- Manager profiles: A flexible model that is a magnet for assets: Sinopia not a `black box` quant manager, to launch 130/30 fund in 2008, SVM sees AUM rise to GBP800m due to strong returns, plans new fund in 2008, McLean says bigger pension funds feel uncomfortable with boutiques that do not fit into the box
- Institutions: New Jersey to deploy $6bln in alternatives, Japan`s largest private-sector pension fund is starting to invest in hedge funds, Fund managers expect pension funds to engage in more risk hedging activity in 2008
- Trends: Big players scrap over fewer opportunities in merger arbitrage: HFs might become more dangerous, Derivatives boom raises risk of forced bankruptcy for companies as it is more beneficial for debt-holders
- Some investors adopt short strategies in volatile China, CM researcher says China overvalued, severe correction looms
- Investors: Northern Trust survey: Generation X (ages 28 to 42) successfully invests in alternatives, 60% say returns on hedge fund investments exceeded expectations, Comment: SEC rules favor wealth over investing know-how, failing to apply three important lessons from the dot-com era, Cautious investors: funds adopting HF strategies are the preference of a number of advisers
- Credit Crunch Update: Global stocks fall, haunted by economy fears, DAVOS: IMF chief calls for `serious` response to US recession risk, Banks have billions in exposure to monolines, What`s $34bln on Wall Street? Fallen execs on their way to new jobs, South Korean asset managers seek potential bargains in US subprime market, Decoupling in Asia
- Société Générale Update:Official chronology of events, Statement by SocGen`s head of corporate and investment banking, French police hold SocGen trader, Rival says trader only lost Eur1.5bln, Rogue trader may not have been acting alone, Kerviel lawyers accuse SocGen of smokescreen to divert attention from other losses, French Premier chides Bank of France Governor for information delay, SocGen loss shocks Gallic pride, Sarkozy would defend SocGen from `predators`, Societe Generale loss shifts Davos focus to fraud, SocGen scandal illustrates perils for China
- Leeson `shocked` at size of scandal, says `rogue trading is probably a daily occurrence in the financial markets`
- People: Dexion appoints Eric Pinn as head of sales and distribution, Perruccio quits Olympia Capital
- Commodities: Are minor metals the true 21st century hard (metal) assets?, End ethanol subsidies, economist urges
- Legal: HK`s Li nears $8m settlement with SEC, Ohio pension plan sues Freddie Mac,Ex-Citi bankers charged under Singapore`s Computer Misuse Act
- Exchanges: Talks about new European derivatives exchange dubbed Project Rainbow
- Northern Rock: In-house survival plan includes $2.6bln share sale, Northern Rock bidder Olivant backed by Middle East fund
- India: Long-short funds soon within the reach of retail investors in India, BlackRock acquires 40% in DSP Merrill Lynch Fund Managers
- Korea remains attractive for hedge funds, says HSBC
- HFWG Update: Comment from Brad Ziff, Hedge Fund Working Group member and director of the hedge funds advisory practice at management consultancy Oliver Wyman
- Sovereign Wealth Funds: Comment: If SWF managers say they would not abuse ownership rights, what harm could an explicit code of conduct be?, Ascent of sovereign-wealth funds illustrates new world order, Singapore sovereign fund GIC promises greater disclosure
- Activist News: Harbinger to nominate candidates for the boards of NYT, Media General, Hedge fund`s letter explains intentions regarding The Times, Saving Sears doesn`t look easy anymore, Lampert`s investors are worried
- News Briefs: Goldman, Credit Suisse to cut about 2,000 jobs, ITG launches best-execution system for buy-side, covers 11 Asian countries, Newedge open to acquiring more Japan commodity firms, Carlyle founder sees shrinking LBOs, Close Investments suspends property fund after redemption requests pour in, Fortis could face Eur1bn subprime hit, WisdomTree and BNY Mellon to offer ETFs, Dubai-based Damac Securities says Gulf stands to benefit from US recession
- ...And finally: Cutting-edge science - Are you sure you don`t want that gene?
- Logon: http://www.opalesque.com/main.php?act=archive
- Performance: Opalesque Exclusive: PharmaInvest Fund up 43.4% in 2007, Old Hill hit with redemptions, Chinese hedge funds under pressure due to recent sell-off, Eddington Triple Alpha Fund outperformed peer group in 2007: 17.21% (est.), Hedge funds still gratify: AIG`s Discolo reports the selected HFs met performance goals in 2007, LJM reaps returns on both sides of options markets
- EuroHedge Awards: GLG, Odey, Brevan Howard funds lead winners at EuroHedge Awards, Sloane Robinson wins Management Firm of the Year award, Peloton won two awards, `World coming to an end` bet returned 87% in 2007
- Opalesque Exclusive: Russia hedge fund annualises 28%, Russia to do well `either way`
- Friday rumor: Rumor of hedge fund collapse circulated through trading rooms on Friday, affected markets, Worries focus on quant funds, but Numeric Investors denies problems, Amsterdam shares close lower following hedge fund rumors
- Fund launches: SkyBridge Capital launches emerging manager HF, Gemstone Financial Group launches new hedge fund, RMF looks for new managers for its FoHF portfolio, State Street Global Advisors launches 130/30 mutual fund, Satellite Asset Management energy experts to launch L/S equity fund, Harcourt, Scandinavian insurers to launch global FoHF
- Manager profiles: A flexible model that is a magnet for assets: Sinopia not a `black box` quant manager, to launch 130/30 fund in 2008, SVM sees AUM rise to GBP800m due to strong returns, plans new fund in 2008, McLean says bigger pension funds feel uncomfortable with boutiques that do not fit into the box
- Institutions: New Jersey to deploy $6bln in alternatives, Japan`s largest private-sector pension fund is starting to invest in hedge funds, Fund managers expect pension funds to engage in more risk hedging activity in 2008
- Trends: Big players scrap over fewer opportunities in merger arbitrage: HFs might become more dangerous, Derivatives boom raises risk of forced bankruptcy for companies as it is more beneficial for debt-holders
- Some investors adopt short strategies in volatile China, CM researcher says China overvalued, severe correction looms
- Investors: Northern Trust survey: Generation X (ages 28 to 42) successfully invests in alternatives, 60% say returns on hedge fund investments exceeded expectations, Comment: SEC rules favor wealth over investing know-how, failing to apply three important lessons from the dot-com era, Cautious investors: funds adopting HF strategies are the preference of a number of advisers
- Credit Crunch Update: Global stocks fall, haunted by economy fears, DAVOS: IMF chief calls for `serious` response to US recession risk, Banks have billions in exposure to monolines, What`s $34bln on Wall Street? Fallen execs on their way to new jobs, South Korean asset managers seek potential bargains in US subprime market, Decoupling in Asia
- Société Générale Update:Official chronology of events, Statement by SocGen`s head of corporate and investment banking, French police hold SocGen trader, Rival says trader only lost Eur1.5bln, Rogue trader may not have been acting alone, Kerviel lawyers accuse SocGen of smokescreen to divert attention from other losses, French Premier chides Bank of France Governor for information delay, SocGen loss shocks Gallic pride, Sarkozy would defend SocGen from `predators`, Societe Generale loss shifts Davos focus to fraud, SocGen scandal illustrates perils for China
- Leeson `shocked` at size of scandal, says `rogue trading is probably a daily occurrence in the financial markets`
- People: Dexion appoints Eric Pinn as head of sales and distribution, Perruccio quits Olympia Capital
- Commodities: Are minor metals the true 21st century hard (metal) assets?, End ethanol subsidies, economist urges
- Legal: HK`s Li nears $8m settlement with SEC, Ohio pension plan sues Freddie Mac,Ex-Citi bankers charged under Singapore`s Computer Misuse Act
- Exchanges: Talks about new European derivatives exchange dubbed Project Rainbow
- Northern Rock: In-house survival plan includes $2.6bln share sale, Northern Rock bidder Olivant backed by Middle East fund
- India: Long-short funds soon within the reach of retail investors in India, BlackRock acquires 40% in DSP Merrill Lynch Fund Managers
- Korea remains attractive for hedge funds, says HSBC
- HFWG Update: Comment from Brad Ziff, Hedge Fund Working Group member and director of the hedge funds advisory practice at management consultancy Oliver Wyman
- Sovereign Wealth Funds: Comment: If SWF managers say they would not abuse ownership rights, what harm could an explicit code of conduct be?, Ascent of sovereign-wealth funds illustrates new world order, Singapore sovereign fund GIC promises greater disclosure
- Activist News: Harbinger to nominate candidates for the boards of NYT, Media General, Hedge fund`s letter explains intentions regarding The Times, Saving Sears doesn`t look easy anymore, Lampert`s investors are worried
- News Briefs: Goldman, Credit Suisse to cut about 2,000 jobs, ITG launches best-execution system for buy-side, covers 11 Asian countries, Newedge open to acquiring more Japan commodity firms, Carlyle founder sees shrinking LBOs, Close Investments suspends property fund after redemption requests pour in, Fortis could face Eur1bn subprime hit, WisdomTree and BNY Mellon to offer ETFs, Dubai-based Damac Securities says Gulf stands to benefit from US recession
- ...And finally: Cutting-edge science - Are you sure you don`t want that gene?
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
RiskMetrics IPO Analysis: Both Business Segments Look Good Despite ...
Seeking Alpha - New York,NY,USA
On January 15, Bill Simpson wrote an analysis of RiskMetrics Group (RMG). The company raised $245 million by offering 14 million shares near the bottom of
Seeking Alpha - New York,NY,USA
On January 15, Bill Simpson wrote an analysis of RiskMetrics Group (RMG). The company raised $245 million by offering 14 million shares near the bottom of
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Funnies, Facts, Quotes, etc….
neophyte NEE-uh-fyt, noun:
1. A new convert or proselyte.
2. A novice; a beginner in anything.
2. A novice; a beginner in anything.
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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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