Archive: 01/31/2008
Main News
After racking up more than $100 billion in mortgage-related losses in recent months, banks and their investors had hoped they were out of the woods. They aren't.
http://online.wsj.com/article/SB120174693398030853.html?mod=djemheard
http://online.wsj.com/article/SB120174693398030853.html?mod=djemheard
Merrill to Exit CDO, Structured Credit Businesses, Thain Says
Bloomberg - USA
Merrill posted its largest-ever loss last year after writing down the value of its CDO holdings and other assets related to subprime mortgages by $24.5 ...
Bloomberg - USA
Merrill posted its largest-ever loss last year after writing down the value of its CDO holdings and other assets related to subprime mortgages by $24.5 ...
UBS to Post Record Full-Year Loss On Further Mortgage Write-Downs
Wall Street Journal - USA
By GORAN MIJUK ZURICH -- UBS AG, one of Europe's worst-it banks by the US subprime mortgage crisis, Wednesday warned it will post a record loss for 2007 due ...
Wall Street Journal - USA
By GORAN MIJUK ZURICH -- UBS AG, one of Europe's worst-it banks by the US subprime mortgage crisis, Wednesday warned it will post a record loss for 2007 due ...
The games hedge fund managers play
The Daily Deal (subscription) - New York,NY,USA
The high-pressure stakes of being a hedge fund manager has its share of risk and reward. Lose a few hundred million dollars one day on a bad trade and the ...
The Daily Deal (subscription) - New York,NY,USA
The high-pressure stakes of being a hedge fund manager has its share of risk and reward. Lose a few hundred million dollars one day on a bad trade and the ...
Tuesday , 29 Jan 2008
Power supplier Eskom restores 80% of power to mines.
Power supplier Eskom restores 80% of power to mines.
Tue, 29 Jan 2008, 22:08
FT.com
An Australian hedge fund that collapsed amid the subprime crisis last year is being valued at just 2 cents in the dollar by its former sister fund at Sydney-based Basis Capital, which ran both. Basis told investors in a quarterly update on Tuesday that the surviving Pac-Rim fund has sold USD100m of assets in order to reduce its gearing and has now positioned itself to split off "dislocated" structured credits from high-yield bond trading strategies. Basis was one of Australia's biggest hedge funds before its Yield Alpha fund - worth USD700m at the start of last year - was hammered when investments in structured credits backed by subprime mortgages went sour and banks called in loans.
An Australian hedge fund that collapsed amid the subprime crisis last year is being valued at just 2 cents in the dollar by its former sister fund at Sydney-based Basis Capital, which ran both. Basis told investors in a quarterly update on Tuesday that the surviving Pac-Rim fund has sold USD100m of assets in order to reduce its gearing and has now positioned itself to split off "dislocated" structured credits from high-yield bond trading strategies. Basis was one of Australia's biggest hedge funds before its Yield Alpha fund - worth USD700m at the start of last year - was hammered when investments in structured credits backed by subprime mortgages went sour and banks called in loans.
U.S. Downturn May Hurt World Less Badly
The spillover effect of the U.S. housing crisis and economic downturn will slow the global economy this year, the International Monetary Fund said yesterday. But some observers insist such forecasts could be worse, noting that America's role in the global marketplace is not as dominant as it once...
(By Anthony Faiola, The Washington Post)
The spillover effect of the U.S. housing crisis and economic downturn will slow the global economy this year, the International Monetary Fund said yesterday. But some observers insist such forecasts could be worse, noting that America's role in the global marketplace is not as dominant as it once...
(By Anthony Faiola, The Washington Post)
Activist Hedge Fund Stock Ideas
Source: TheStreet.com
Great hedge funds are always seeking value for their investors, and ultimately strong returns for themselves. Hedge funds differ from their traditional counterparts, mutual funds, in part because they have much more concentrated portfolios and fewer assets under management. This structure forces hedge funds to really find those hidden diamonds from which to extract value in the market. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: TheStreet.com
Great hedge funds are always seeking value for their investors, and ultimately strong returns for themselves. Hedge funds differ from their traditional counterparts, mutual funds, in part because they have much more concentrated portfolios and fewer assets under management. This structure forces hedge funds to really find those hidden diamonds from which to extract value in the market. More... <http://www.hedgefund-index.com/newstoday.asp>
Hedge-fund worthy trips
MSNBC Wed, 30 Jan 2008 8:08 AM PST
There are a handful of people who are mind-bogglingly, ostentatiously wealthy, and never have there been more — or flashier — ways to vacation in equally ostentatious style. Concierge.com details ten of the world's most extravagant trips.
MSNBC Wed, 30 Jan 2008 8:08 AM PST
There are a handful of people who are mind-bogglingly, ostentatiously wealthy, and never have there been more — or flashier — ways to vacation in equally ostentatious style. Concierge.com details ten of the world's most extravagant trips.
Regulators should halt bond insurer dividends: Ackman
Reuters via Yahoo! News Wed, 30 Jan 2008 1:21 PM PST
The founder of hedge fund Pershing Square Capital Management told regulators on Wednesday that the two biggest U.S. bond insurers face combined losses of over $23 billion from bonds they've insured, and should be forced to stop paying dividends.
Reuters via Yahoo! News Wed, 30 Jan 2008 1:21 PM PST
The founder of hedge fund Pershing Square Capital Management told regulators on Wednesday that the two biggest U.S. bond insurers face combined losses of over $23 billion from bonds they've insured, and should be forced to stop paying dividends.
European Economic Forecast: Testing Times Ahead
It's a difficult time for the economies of Europe. The dislocation in the financial markets shows no sign of abating, and the "R" word is increasingly finding its way into the collective consciousness. But while the environment is difficult for the region as a whole, the ability of individual economies to withstand the conditions will depend on their current health in terms of household debt and savings, corporate debt, and international competitiveness. We believe the U.K., Spain, and Italy appear the most exposed to a pronounced slowdown.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAWAYQTVsLgHxhilpuHQJhuV2VR
It's a difficult time for the economies of Europe. The dislocation in the financial markets shows no sign of abating, and the "R" word is increasingly finding its way into the collective consciousness. But while the environment is difficult for the region as a whole, the ability of individual economies to withstand the conditions will depend on their current health in terms of household debt and savings, corporate debt, and international competitiveness. We believe the U.K., Spain, and Italy appear the most exposed to a pronounced slowdown.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAWAYQTVsLgHxhilpuHQJhuV2VR
Société Générale's board of directors said it unanimously backed Chairman and co-Chief Executive Daniel Bouton and co-CEO Philippe Citerne to remain in their posts following last week's announcement of a 4.9 billion euro ($7.2 billion) trading loss.
The bank also said it plans to set up an independent committee to investigate the trading losses. The committee, which will be headed by former PSA Peugeot Citroen CEO Jean-Martin Folz, has asked PricewaterhouseCoopers to help in the probe. The committee's task is to ensure "the causes and sizes of the trading losses announced by the bank have been completely identified." It will also put measures in place to prevent such an event happening again.
For more information, see: http://online.wsj.com/article/SB120168827173528415.html?mod=djemalertNEWS
The bank also said it plans to set up an independent committee to investigate the trading losses. The committee, which will be headed by former PSA Peugeot Citroen CEO Jean-Martin Folz, has asked PricewaterhouseCoopers to help in the probe. The committee's task is to ensure "the causes and sizes of the trading losses announced by the bank have been completely identified." It will also put measures in place to prevent such an event happening again.
For more information, see: http://online.wsj.com/article/SB120168827173528415.html?mod=djemalertNEWS
United States, Canada, Military: Icebreaking Capacity and the Northwest Passage
January 29, 2008 2233 GMT
As the recession of the Arctic icepack has drifted northward, more and more of the waters of what could become the Northwest Passage are becoming navigable during the summer.
http://www.stratfor.com/analysis/united_states_canada_military_icebreaking_capacity_and_northwest_passage
January 29, 2008 2233 GMT
As the recession of the Arctic icepack has drifted northward, more and more of the waters of what could become the Northwest Passage are becoming navigable during the summer.
http://www.stratfor.com/analysis/united_states_canada_military_icebreaking_capacity_and_northwest_passage
Buffeted by recent financial market turbulence and a weakening U.S. performance, world growth is projected to slow to 4.1 percent in 2008, down from an estimated 4.9 percent last year, the IMF said in its quarterly update for the global economy.
How did he actually do it? Well, rather simply. That is the explanation when it comes to how Société Générale's Jérôme Kerviel managed to cover his tracks and conceal billions of dollars worth of trading losses from the French banking titan.
STOCKHOLM, Sweden (HedgeWorld.com)—The deputy governor of Sveriges Riksbank, the bank responsible for Sweden's monetary policy, said the credit crisis is likely to be deeper and longer than initially expected. ......
SocGen Tumult Deepens: Judges toss out Fraud Charge against Kerviel
The Guardian - Wednesday January 30, 10:18 GMT
The Guardian - Wednesday January 30, 10:18 GMT
Jérôme Kerviel, French National Hero
Times Online - Wednesday January 30, 08:25 GMT
Times Online - Wednesday January 30, 08:25 GMT
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Yield Curve Corner
Bernanke’s Midterm Tests
New York Times - United States
And this Friday, Ben Bernanke will reach the halfway point of his first term. Sometime before Feb. 1, 2010, the next president will have to decide whether ...
New York Times - United States
And this Friday, Ben Bernanke will reach the halfway point of his first term. Sometime before Feb. 1, 2010, the next president will have to decide whether ...
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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/TRCgene030_GJ.jpg
Millions stranded by snow in China holiday havoc
January 30, 2008 06:06 AM ET
GUANGZHOU, China (Reuters) - Millions of Chinese shivered through
power cuts and water shortages on Wednesday and millions more
were stranded by snow ahead of what for some is the only holiday
of the year.
http://links.reuters.com/r/QO4QB/Z7QX0/L7KJV/ZOX5G/C1Z9C/YT/t
January 30, 2008 06:06 AM ET
GUANGZHOU, China (Reuters) - Millions of Chinese shivered through
power cuts and water shortages on Wednesday and millions more
were stranded by snow ahead of what for some is the only holiday
of the year.
http://links.reuters.com/r/QO4QB/Z7QX0/L7KJV/ZOX5G/C1Z9C/YT/t
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Iranian Situation and Other Man Made Disasters
Iran's top judge stops public executions
AP via Yahoo! News Wed, 30 Jan 2008 10:48 AM PST
Iran's chief judge has ordered that executions will no longer take place in public, the official IRNA news agency reported Wednesday.
AP via Yahoo! News Wed, 30 Jan 2008 10:48 AM PST
Iran's chief judge has ordered that executions will no longer take place in public, the official IRNA news agency reported Wednesday.
Ahmadinejad Sees Nuclear Energy in Iran by 2009
New York Times Wed, 30 Jan 2008 10:11 AM PST
President Mahmoud Ahmadinejad of Iran said that his country would produce nuclear energy by next year and lashed out at Israel as a ?filthy entity? that would soon collapse.
New York Times Wed, 30 Jan 2008 10:11 AM PST
President Mahmoud Ahmadinejad of Iran said that his country would produce nuclear energy by next year and lashed out at Israel as a ?filthy entity? that would soon collapse.
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Opalesque’s Corner
- Opalesque Exclusive: Perfect timing for a `Crisis` fund, manager predicts no decoupling for decades, IMF sees slowing world economy in 2008, `reports of decoupling have been greatly exaggerated`, IMF: `It is going to be a story of how are you linked to the US and to what extent can your policies deal with the repercussions`
- Fund launches: NARA Capital launches ABL fund of funds, Reech AiM preps commodities, credit hedge funds, January 08 not the greatest month to launch, some managers choose to wait
- 130/30: MacKay Shields introduces high yield 130/30 strategy via the MainStay funds
- S&P launches alpha generation indices
- Performance: Integrated Asset Management says assets up 73% in 2007, profit in line, Losses drive Canada`s Mondiale Asset Management to return US$500m investor capital, `temporarily discontinue trading operations`, Failed Basis fund now valued at 2 cents in dollar,
- Sunday Times puts record straight: Funds were closing, not losing
- Opalesque Exclusive / Update: Managing the Unavoidable: Understanding Investment Implications of Adapting to Climate Change (Report)
- Trends: `Blank cheque` vehicles prove popular in a volatile market, at least 75 HFs are trying to take advantage of opportunities
- Legal: Bayou`s Marino sentenced to 20 years in prison, U.S. attorney proposes `right away` repayments, Sentinel`s subprime debt investment loses value
- FBI Investigations: Goldman, Morgan Stanley probed on subprime, FBI starts criminal investigations into 14 corporations as part of crackdown on improper subprime lending
- Regulators: Japanese regulators check on subprime loss disclosures, and how `these structured products were marketed to Japanese investors`, UK FSA warns of further risks to financial system due to rising risk of consumer and business defaults, The UK FSA seems to have learnt its lesson a year too late, Comment from EC`s David Right: Regulators must wait and see whether the UK`s HFWG code proves effective
- Credit Crunch Update: UBS surprises with more subprime woes, posts CHF12.5 bln loss for Q4, Morgan Stanley sees several more quarters of credit turmoil ahead, Countrywide posts larger-than-expected quarterly loss but shares up, Bond insurers expected to fall further as many investors continue to short Ambac and MBIA, including Bill Ackman
- Views: Ackman: Rating agencies too late on bond insurers, Jim Rogers Interview: `We are going to see much worse before the year is over`, Value Partner`s CIO concerned about a political backlash against fund industry, which should return to basics, Sweedish bank chief say hedge funds part of solution at Nordic Hedge Fund Conference
- SocGen Update: Kerviel says SocGen must have known of his trades, claims, Rogue trader dramatically walks free as France says bank in `crisis`, to face not fraud but max. 3 years for relatively minor offences, Societe Generale to call in independent auditors, SocGen`s Mustier is on shaky ground, Other banks may snap up equity derivatives traders from SocGen, BNP Paribas ponders takeover bid for its smaller rival, Computer experts say rapid evolution of trading operations have opened up new security risks, UK`s FSA says SocGen a `wake-up call` for banks, Ex-Salomon CEO Gutfreund thinks the problem is widespread
- People: Citi Alternative Investments names three new executives, BNP Paribas expands London fund derivatives sales team, Quadrangle hires Doug Kramer as COO, Menta Capital co-founder leaves firm, Platinum Funding Group promotes Belinka, Securities lawyer Yonge joins Proskauer Rose in London
- Institutions: Massachusetts`s pension trust posts 11.9%, losses from Sowood made up for by other HFs, Colorado creates opportunity fund, could include 130/30 or commodities
- Commodities: Commodity trader & HF manager Armajaro in expansion mode with a new coffee sourcing and trading business
- Exchanges: CME-Nymex deal seen unlikely to be blocked by Government
- Citing success of principles-based regulation in U.S. futures markets, NFA urges Treasury to suggest similar regulatory structure for other financial markets
- Qatar considers severing dollar peg
- 2007: A near vintage year for Asian hedge funds, Eurekahedge Asian index up 20.27%
- EM equity funds have worst week ever in dollar terms as investors seek safety in Money Market and US Bond Funds
- Event: High Water Women`s third annual Casino Night fundraiser raises over $810,000
- Biggs` tips for rich: Expect war, study blitz, mind markets (new book coming)
- Activists News: Lampert admits misjudgment, sees Sears turnaround, The meaning of Eddie Lampert`s travails with Sears, Shreddin` Eddie: Lampert`s two wrongs still not making a right, Hedge funds push Dillard`s to boost share price, Hedge fund Centennial renews assault on Compton
- News Briefs: Carnegie named Fund Manager of The Year, Carnegie World Wide HF nominated in best HFs category
- ...And finally: UK man with `ultimate` business idea: Rent a 17-tonne tank to crush or shoot down speed cameras - `I think it will be popular with motorists...`
- Logon: http://www.opalesque.com/main.php?act=archive
- Fund launches: NARA Capital launches ABL fund of funds, Reech AiM preps commodities, credit hedge funds, January 08 not the greatest month to launch, some managers choose to wait
- 130/30: MacKay Shields introduces high yield 130/30 strategy via the MainStay funds
- S&P launches alpha generation indices
- Performance: Integrated Asset Management says assets up 73% in 2007, profit in line, Losses drive Canada`s Mondiale Asset Management to return US$500m investor capital, `temporarily discontinue trading operations`, Failed Basis fund now valued at 2 cents in dollar,
- Sunday Times puts record straight: Funds were closing, not losing
- Opalesque Exclusive / Update: Managing the Unavoidable: Understanding Investment Implications of Adapting to Climate Change (Report)
- Trends: `Blank cheque` vehicles prove popular in a volatile market, at least 75 HFs are trying to take advantage of opportunities
- Legal: Bayou`s Marino sentenced to 20 years in prison, U.S. attorney proposes `right away` repayments, Sentinel`s subprime debt investment loses value
- FBI Investigations: Goldman, Morgan Stanley probed on subprime, FBI starts criminal investigations into 14 corporations as part of crackdown on improper subprime lending
- Regulators: Japanese regulators check on subprime loss disclosures, and how `these structured products were marketed to Japanese investors`, UK FSA warns of further risks to financial system due to rising risk of consumer and business defaults, The UK FSA seems to have learnt its lesson a year too late, Comment from EC`s David Right: Regulators must wait and see whether the UK`s HFWG code proves effective
- Credit Crunch Update: UBS surprises with more subprime woes, posts CHF12.5 bln loss for Q4, Morgan Stanley sees several more quarters of credit turmoil ahead, Countrywide posts larger-than-expected quarterly loss but shares up, Bond insurers expected to fall further as many investors continue to short Ambac and MBIA, including Bill Ackman
- Views: Ackman: Rating agencies too late on bond insurers, Jim Rogers Interview: `We are going to see much worse before the year is over`, Value Partner`s CIO concerned about a political backlash against fund industry, which should return to basics, Sweedish bank chief say hedge funds part of solution at Nordic Hedge Fund Conference
- SocGen Update: Kerviel says SocGen must have known of his trades, claims, Rogue trader dramatically walks free as France says bank in `crisis`, to face not fraud but max. 3 years for relatively minor offences, Societe Generale to call in independent auditors, SocGen`s Mustier is on shaky ground, Other banks may snap up equity derivatives traders from SocGen, BNP Paribas ponders takeover bid for its smaller rival, Computer experts say rapid evolution of trading operations have opened up new security risks, UK`s FSA says SocGen a `wake-up call` for banks, Ex-Salomon CEO Gutfreund thinks the problem is widespread
- People: Citi Alternative Investments names three new executives, BNP Paribas expands London fund derivatives sales team, Quadrangle hires Doug Kramer as COO, Menta Capital co-founder leaves firm, Platinum Funding Group promotes Belinka, Securities lawyer Yonge joins Proskauer Rose in London
- Institutions: Massachusetts`s pension trust posts 11.9%, losses from Sowood made up for by other HFs, Colorado creates opportunity fund, could include 130/30 or commodities
- Commodities: Commodity trader & HF manager Armajaro in expansion mode with a new coffee sourcing and trading business
- Exchanges: CME-Nymex deal seen unlikely to be blocked by Government
- Citing success of principles-based regulation in U.S. futures markets, NFA urges Treasury to suggest similar regulatory structure for other financial markets
- Qatar considers severing dollar peg
- 2007: A near vintage year for Asian hedge funds, Eurekahedge Asian index up 20.27%
- EM equity funds have worst week ever in dollar terms as investors seek safety in Money Market and US Bond Funds
- Event: High Water Women`s third annual Casino Night fundraiser raises over $810,000
- Biggs` tips for rich: Expect war, study blitz, mind markets (new book coming)
- Activists News: Lampert admits misjudgment, sees Sears turnaround, The meaning of Eddie Lampert`s travails with Sears, Shreddin` Eddie: Lampert`s two wrongs still not making a right, Hedge funds push Dillard`s to boost share price, Hedge fund Centennial renews assault on Compton
- News Briefs: Carnegie named Fund Manager of The Year, Carnegie World Wide HF nominated in best HFs category
- ...And finally: UK man with `ultimate` business idea: Rent a 17-tonne tank to crush or shoot down speed cameras - `I think it will be popular with motorists...`
- 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….
canorous kuh-NOR-us; KAN-or-uhs, adjective:
Richly melodious; pleasant sounding; musical.
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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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