Archive: 02/12/2008
Main News
The US Economy is in pretty bad shape. Whether the second consecutive quarter of negative growth will actually plunge us into what economists would technically call a “recession”, just the simple fact that the debate is on the table means that we’re in trouble. And what do we do when we’re in trouble? Well, we try to talk ourselves out of it. Essentially, that is what many people feel the rating agencies are doing.
AIG Discloses `Weakness' in Derivative Accounting (Update2). By Hugh Son. Enlarge Image/Details. Feb. 11 (Bloomberg) -- American International Group Inc., ...
www.bloomberg.com/apps/news?pid=20601087&sid=a68dZSzx5y8g&refer=home - 11 hours ago - Similar pages - Note this
www.bloomberg.com/apps/news?pid=20601087&sid=a68dZSzx5y8g&refer=home - 11 hours ago - Similar pages - Note this
Exotic beta is the new alpha
http://www.ipe.com/news/Exotic_beta_is_the_new_alpha_27112.php
http://www.ipe.com/news/Exotic_beta_is_the_new_alpha_27112.php
Bear market is almost seven months old
The popular indexes recorded their final bull market highs in October. However, most measures of breadth peaked in May-June and unweighted indexes (such as the Value Line Arithmetic index) peaked in July. By contrast, in October, breadth, the number of new 52-week highs, volume patterns, and the unweighted indexes were substantially below their summer highs. These classic divergences imply that the internal peak occurred last summer and that the current bear market is quite a bit more mature than is widely appreciated
January 16, 2008, 1:00 pm
Why Baby Boomers May Bust the Housing Market
SEI White Paper: Maturing Hedge Fund Industry Must Shift Gears to Grow Institutional Business
PR Newswire via Yahoo! Finance Mon, 11 Feb 2008 5:48 AM PST
As hedge funds increasingly look to the institutional market for asset growth, they must equip themselves to fit the high expectations and conservative attitudes characterizing institutional investors, concludes a white paper released today by SEI , titled "Five Critical Challenges for Hedge Funds Taking Aim at the Institutional Market."
PR Newswire via Yahoo! Finance Mon, 11 Feb 2008 5:48 AM PST
As hedge funds increasingly look to the institutional market for asset growth, they must equip themselves to fit the high expectations and conservative attitudes characterizing institutional investors, concludes a white paper released today by SEI , titled "Five Critical Challenges for Hedge Funds Taking Aim at the Institutional Market."
U.S. Stocks Near an `Important Bottom,' Biggs Says (Update2)
Bloomberg.com Mon, 11 Feb 2008 9:13 AM PST
Feb. 11 (Bloomberg) -- Barton Biggs, co-founder of hedge fund Traxis Partners LLC, said he's ``gradually increasing'' his holdings of U.S. equities because he doesn't expect a recession and shares are ``very, very cheap.''
Bloomberg.com Mon, 11 Feb 2008 9:13 AM PST
Feb. 11 (Bloomberg) -- Barton Biggs, co-founder of hedge fund Traxis Partners LLC, said he's ``gradually increasing'' his holdings of U.S. equities because he doesn't expect a recession and shares are ``very, very cheap.''
Subprime Mortgage Modifications Raise Significant Financial Reporting Issues For U.S. Banks
The recent increase in modification activity and its elevated magnitude raise important financial reporting and accounting issues, including how to determine the value at which the loans should be presented on the balance sheet, how to quantify impairment charges related to "lost interest" upon modification, and whether the modified loans should be classified as performing or nonperforming assets. The answers to these may meaningfully affect measures used in Standard & Poor's analyses of financial institutions' performance and asset-quality.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAYDCQTVsLgHxhilpuHQJhuV2VD
The recent increase in modification activity and its elevated magnitude raise important financial reporting and accounting issues, including how to determine the value at which the loans should be presented on the balance sheet, how to quantify impairment charges related to "lost interest" upon modification, and whether the modified loans should be classified as performing or nonperforming assets. The answers to these may meaningfully affect measures used in Standard & Poor's analyses of financial institutions' performance and asset-quality.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAYDCQTVsLgHxhilpuHQJhuV2VD
C.L.O.se to Disaster
An already-battered debt market is sweating a wave of desperate loan auctions. Read More
An already-battered debt market is sweating a wave of desperate loan auctions. Read More
CDO Losses Driving Credit-Default Swaps to Record, Analysts Say
Bloomberg - USA
``Lenders are probably reducing risk positions in a deteriorating credit environment by unwinding CDOs.'' Banks are facing mounting writedowns on CDOs, ...
Bloomberg - USA
``Lenders are probably reducing risk positions in a deteriorating credit environment by unwinding CDOs.'' Banks are facing mounting writedowns on CDOs, ...
China set to buy Japan
http://www.ipe.com/realestate/China_set_to_buy_Japan_27122.php
http://www.ipe.com/realestate/China_set_to_buy_Japan_27122.php
by Mebane Faber
by Chad Brand
Hedge Fund Seedlings Struggle
Wall Street Journal - USA
By KAJA WHITEHOUSE Although established hedge funds have been seeing healthy growth, start-up hedge funds seem to be wilting. MFS Investment Management in ...
Wall Street Journal - USA
By KAJA WHITEHOUSE Although established hedge funds have been seeing healthy growth, start-up hedge funds seem to be wilting. MFS Investment Management in ...
ZÜRICH, Switzerland (HedgeWorld.com)—The Julius Baer Group saw net profits soar in 2007, rising 31% year-on-year to 1.14 billion Swiss francs ($1.03 billion). ......
Mon, 11 Feb 2008, 07:21
Deseret Morning News
Even a "go anywhere" investment can go down. Many of those freewheeling investment partnerships known as hedge funds, which logged an average gain of 10 per cent last year, have suffered losses of 5 per cent or more in early 2008. There are more than 10,000 hedge funds, with assets totaling nearly USD2 trillion. A large number weren't in existence in 2000, the last time financial markets were badly shaken. So we're breaking new ground, making it difficult to predict how they'll perform in the coming year.
Even a "go anywhere" investment can go down. Many of those freewheeling investment partnerships known as hedge funds, which logged an average gain of 10 per cent last year, have suffered losses of 5 per cent or more in early 2008. There are more than 10,000 hedge funds, with assets totaling nearly USD2 trillion. A large number weren't in existence in 2000, the last time financial markets were badly shaken. So we're breaking new ground, making it difficult to predict how they'll perform in the coming year.
Monday , 11 Feb 2008
Chinese officials have just announced the discovery of a major bentonite deposit, and highlighted the discovery of five major gold mines in 2007.
Chinese officials have just announced the discovery of a major bentonite deposit, and highlighted the discovery of five major gold mines in 2007.
Monday , 11 Feb 2008
The steady rise in platinum group metals prices continues following supply disruptions in South Africa which accounts for around 80 percent of new mine production.
The steady rise in platinum group metals prices continues following supply disruptions in South Africa which accounts for around 80 percent of new mine production.
Three of the world's leading financial institutions last week announced the formation of The Carbon Principles, climate change guidelines for advisors and lenders to power companies in the United States. These Principles are the result of a nine-month intensive effort to create an approach to evaluating and addressing carbon risks in the financing of electric power projects.
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Yield Curve Corner
Fed's Rate Cuts Bring No Relief For Consumers' Credit Card Bills
The Federal Reserve's dramatic rate cuts were expected to make it cheaper for consumers to use credit cards. But credit card interest rates remain high and in many cases have even climbed.
(By Nancy Trejos, The Washington Post)
The Federal Reserve's dramatic rate cuts were expected to make it cheaper for consumers to use credit cards. But credit card interest rates remain high and in many cases have even climbed.
(By Nancy Trejos, The Washington Post)
Weekly Review and Outlook − Focus on Bernanke after Trichet Sent ...
FXstreet.com The Foreign Exchange Market - Barcelona,Spain
Markets focus will turn to another string of important economic data from UK and US this week, together with Bernanke's testimony before Senate and BoE ...
FXstreet.com The Foreign Exchange Market - Barcelona,Spain
Markets focus will turn to another string of important economic data from UK and US this week, together with Bernanke's testimony before Senate and BoE ...
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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/FSHSsoutheast042_N8.jpg
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Iranian Situation and Other Man Made Disasters
Iran sends defiant message to West on revolution day
Reuters via Yahoo! News Mon, 11 Feb 2008 6:21 AM PST
Iran aims to send a satellite into space within months and will not retreat in a nuclear row with the West, its president said on Monday, in a defiant speech on the anniversary of the country's 1979 Islamic revolution.
Reuters via Yahoo! News Mon, 11 Feb 2008 6:21 AM PST
Iran aims to send a satellite into space within months and will not retreat in a nuclear row with the West, its president said on Monday, in a defiant speech on the anniversary of the country's 1979 Islamic revolution.
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Opalesque’s Corner
- Hedge funds of funds hit $1 trillion in assets says InvestHedge Billion Dollar Club survey at end-2007
- Emerging Markets: $9bln inflows bring Emerging Markets funds to over 950 funds and $110bln AUM, Brazilian hedge funds industry`s AUM now at US$127bln, AUM growth exceeded rest of industry`s, Fitch Ratings: Negative outlook for emerging markets (video)
- M&A: Goldman fund buys Capula stake
- Fund launches: Lehman structured finance team to split off and form distressed hedge fund, Moore Capital trader to create $2.5bn fund, Marco Polo launches L/S `Pure Pan China Fund`, Alden Global Capital prepares Middle East/North Africa, Canada hedge funds, QIM unveils two new hedge funds, Man launches cap protected note with exposure to 50 `complementary` hedge fund managers and AHL, SSgA launched multi-asset product for UK institutionals
- Performance: Polar Capital shuts technology hedge fund, Hedge funds closing their doors or laying off staff to weather debt market storm
- Seeders: First Avenue launches HF seeder fund, the FAP Hedge Fund Opportunities Fund, with Eur100m, unique investment approach, NY firm shutters its newly launched hedge fund seeding program, it`s getting harder for start-up funds
- Dexion Absolute to raise up to $260mln, placing seen as first in a trend
- Portraits: Metaxa`s CMA: A boutique with large-scale vision, looking to attract neophyte investors and produce specialized funds, Augustus Asset Managers: `The current environment is excellent for macro strategies`
- Investors: Bramdean`s Horlick peeks at hedge fund manager diaries to see `whether he still is coming into the office every day`, Watson Wyatt Survey: Institutional investors to increase absolute return investments over next decade, think that alpha is in short supply, Performance no longer enough to attract assets, institutional capital will not continue to roll during current climate
- Comment: Hedge funds` resiliency as investment banks got crunched shows the system`s merits
- Regulators: FSF sets out policy directions for strengthening the resilience of the financial system, to propose policy directions in six key areas, UK FSA warns on derivatives dangers
- Compliance: Pressure is building on hedge fund to adopt Gips tool
- Indices: Update: Hennessee Hedge Fund Index declined -2.45% in January, fourth worst month in history, S&P: World equity markets lost a combined $5.2tln in January as emerging markets fell 12.44% and developed markets lost 7.83%
- SocGen Update: SocGen trader Kerviel behind bars, Fimat employee detained by police for questioning, Kerviel made $2.1bln from unauthorized bets in 2007, execs say, SocGen in discounted rights issue, Comment: Trading and youth
- Credit Crunch Update: SEC may seek more disclosure by credit raters, Bear Stearns is `short` subprime mortgages $1bln, says CFO, Subprime credit loss heading for $400bn, say G7 finance chiefs, Credit woes may widen as low-rated corporate loans plummet in value, Fitch: BoE`s interest rate cut will be positive for subprime performance, Jeremy Grantham interview: This credit crisis has a long way to run
- People: PGGM`s Head of Alternative Beta joins Mercer as head of investment strategies consulting, New managing partner at Harcourt Investment Consulting AG, Schulte Roth & Zabel names two special counsels in London,
- Institutions: JPMorgan to provide currency hedging for UK pension fund, U.N. Pension looking into alternatives, Teamsters fund hired Mellon to manage $5.4bln index fund
- Commodities: PGGM commodities shake up, adds 5% livestock
- Exchanges: New (unnamed) electronic futures exchange considering NYSE Euronext vice chairman as chief, CME CEO: Department of Justice`s request for antitrust review not tied to Nymex deal
- Legal: Michigan couple ordered to pay more than $3.1m in sanctions for `Private Hedge Fund` fraud, Seth Tobias` wife unlikely to face murder charges
- Europe: Opalesque Exclusive: German hedge fund market estimated at 30bln Euros, Fitch: BoE`s interest rate cut will be positive for subprime performance
- Africa: Winners of the SYmmETRY Hedge Fund Awards all comfortably beat JSE returns in 2007
- Administrators: Caledonian Global Fund Services opens new operations center in Orlando, Florida
- Preqin acquires Pinnacle`s proprietary database of hedge fund investors
- Sovereign Wealth Funds: Overseas funds resist calls for a code of conduct
- Northern Rock Update: RAB Capital edges Northern Rock stake towards 8%, Rock investors threaten lawsuit if Virgin wins
- Activist News: Harbinger sweet-talks Tate & Lyle, Steel Partners`s Point Blank bid gaining steam
- News Briefs:S&P teams with BusinessWeek to launch Global Innovation Index, New paper from the National Bureau of Economic Research: Do hedge funds profit from mutual-fund distress?, Julius Baer positioned for slowdown, profits soared 31% in 2007, HSBC poised to sell French branches, Update: Macquarie boss Moss steps down
- ...And finally: Czech police stops husband and wife just before signing agreement with unnamed (but `renowned`) Swiss bank to get $3.5bln bank guarantee to start fake `international airline`
- Logon: http://www.opalesque.com/main.php?act=archive
- Emerging Markets: $9bln inflows bring Emerging Markets funds to over 950 funds and $110bln AUM, Brazilian hedge funds industry`s AUM now at US$127bln, AUM growth exceeded rest of industry`s, Fitch Ratings: Negative outlook for emerging markets (video)
- M&A: Goldman fund buys Capula stake
- Fund launches: Lehman structured finance team to split off and form distressed hedge fund, Moore Capital trader to create $2.5bn fund, Marco Polo launches L/S `Pure Pan China Fund`, Alden Global Capital prepares Middle East/North Africa, Canada hedge funds, QIM unveils two new hedge funds, Man launches cap protected note with exposure to 50 `complementary` hedge fund managers and AHL, SSgA launched multi-asset product for UK institutionals
- Performance: Polar Capital shuts technology hedge fund, Hedge funds closing their doors or laying off staff to weather debt market storm
- Seeders: First Avenue launches HF seeder fund, the FAP Hedge Fund Opportunities Fund, with Eur100m, unique investment approach, NY firm shutters its newly launched hedge fund seeding program, it`s getting harder for start-up funds
- Dexion Absolute to raise up to $260mln, placing seen as first in a trend
- Portraits: Metaxa`s CMA: A boutique with large-scale vision, looking to attract neophyte investors and produce specialized funds, Augustus Asset Managers: `The current environment is excellent for macro strategies`
- Investors: Bramdean`s Horlick peeks at hedge fund manager diaries to see `whether he still is coming into the office every day`, Watson Wyatt Survey: Institutional investors to increase absolute return investments over next decade, think that alpha is in short supply, Performance no longer enough to attract assets, institutional capital will not continue to roll during current climate
- Comment: Hedge funds` resiliency as investment banks got crunched shows the system`s merits
- Regulators: FSF sets out policy directions for strengthening the resilience of the financial system, to propose policy directions in six key areas, UK FSA warns on derivatives dangers
- Compliance: Pressure is building on hedge fund to adopt Gips tool
- Indices: Update: Hennessee Hedge Fund Index declined -2.45% in January, fourth worst month in history, S&P: World equity markets lost a combined $5.2tln in January as emerging markets fell 12.44% and developed markets lost 7.83%
- SocGen Update: SocGen trader Kerviel behind bars, Fimat employee detained by police for questioning, Kerviel made $2.1bln from unauthorized bets in 2007, execs say, SocGen in discounted rights issue, Comment: Trading and youth
- Credit Crunch Update: SEC may seek more disclosure by credit raters, Bear Stearns is `short` subprime mortgages $1bln, says CFO, Subprime credit loss heading for $400bn, say G7 finance chiefs, Credit woes may widen as low-rated corporate loans plummet in value, Fitch: BoE`s interest rate cut will be positive for subprime performance, Jeremy Grantham interview: This credit crisis has a long way to run
- People: PGGM`s Head of Alternative Beta joins Mercer as head of investment strategies consulting, New managing partner at Harcourt Investment Consulting AG, Schulte Roth & Zabel names two special counsels in London,
- Institutions: JPMorgan to provide currency hedging for UK pension fund, U.N. Pension looking into alternatives, Teamsters fund hired Mellon to manage $5.4bln index fund
- Commodities: PGGM commodities shake up, adds 5% livestock
- Exchanges: New (unnamed) electronic futures exchange considering NYSE Euronext vice chairman as chief, CME CEO: Department of Justice`s request for antitrust review not tied to Nymex deal
- Legal: Michigan couple ordered to pay more than $3.1m in sanctions for `Private Hedge Fund` fraud, Seth Tobias` wife unlikely to face murder charges
- Europe: Opalesque Exclusive: German hedge fund market estimated at 30bln Euros, Fitch: BoE`s interest rate cut will be positive for subprime performance
- Africa: Winners of the SYmmETRY Hedge Fund Awards all comfortably beat JSE returns in 2007
- Administrators: Caledonian Global Fund Services opens new operations center in Orlando, Florida
- Preqin acquires Pinnacle`s proprietary database of hedge fund investors
- Sovereign Wealth Funds: Overseas funds resist calls for a code of conduct
- Northern Rock Update: RAB Capital edges Northern Rock stake towards 8%, Rock investors threaten lawsuit if Virgin wins
- Activist News: Harbinger sweet-talks Tate & Lyle, Steel Partners`s Point Blank bid gaining steam
- News Briefs:S&P teams with BusinessWeek to launch Global Innovation Index, New paper from the National Bureau of Economic Research: Do hedge funds profit from mutual-fund distress?, Julius Baer positioned for slowdown, profits soared 31% in 2007, HSBC poised to sell French branches, Update: Macquarie boss Moss steps down
- ...And finally: Czech police stops husband and wife just before signing agreement with unnamed (but `renowned`) Swiss bank to get $3.5bln bank guarantee to start fake `international airline`
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
Ernie Adams – genius behind the patriots success….
Catch of the day: Cocaine
Risks and rewards in RiskMetrics IPO
FinancialWeek (subscription) - New York,NY,USA
RiskMetrics’ early stock market success doesn’t mean the company is short on challenges. After all, going public will most certainly bring the firm ...
FinancialWeek (subscription) - New York,NY,USA
RiskMetrics’ early stock market success doesn’t mean the company is short on challenges. After all, going public will most certainly bring the firm ...
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Funnies, Facts, Quotes, etc….
ersatz AIR-sahts; UR-sats, adjective:
Being a substitute or imitation, usually an inferior one.
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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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