Archive: 02/29/2008
Main News
BANKS FAILING TO MANAGE IT RISK - STUDY
A new survey by Ernst & Young has found that the majority of global banks are failing to align IT risk management practices within more general enterprise and operational risk frameworks.
More on this story: http://www.finextra.com/fullstory.asp?id=18159
A new survey by Ernst & Young has found that the majority of global banks are failing to align IT risk management practices within more general enterprise and operational risk frameworks.
More on this story: http://www.finextra.com/fullstory.asp?id=18159
MF Global said a wheat trader was able to conduct unauthorized trades on Wednesday because of a failure in the system that the broker used to vet trades.
» Read the Full Story
» Read the Full Story
Stocks Fall, Ending Dow's Rally
By Mark Glassman
Traders sent the major indexes lower after a warning on inflation from the Fed and a weak GDP report.
http://www.smartmoney.com/t.cfm?pId=7&mID=406&mDt=02/28/2008&ui=1157312&ctu=%2Fbn%2Findex%2Ecfm%3Fstory%3D20080228085719
By Mark Glassman
Traders sent the major indexes lower after a warning on inflation from the Fed and a weak GDP report.
http://www.smartmoney.com/t.cfm?pId=7&mID=406&mDt=02/28/2008&ui=1157312&ctu=%2Fbn%2Findex%2Ecfm%3Fstory%3D20080228085719
Economic News is Getting Worse 2/27/08
David Wyss, Chief Economist, Standard & Poor's
S&P's chief economist David Wyss notes the news on the economy is looking increasingly bad; this week's data showed housing continues to deteriorate, and there are signs of weakness on the consumer side. Virtually all the data coming in confirms S&P's view that the economy is already in a recession, with a slow recovery expected.
Watch Now (3:24 min)
David Wyss, Chief Economist, Standard & Poor's
S&P's chief economist David Wyss notes the news on the economy is looking increasingly bad; this week's data showed housing continues to deteriorate, and there are signs of weakness on the consumer side. Virtually all the data coming in confirms S&P's view that the economy is already in a recession, with a slow recovery expected.
Watch Now (3:24 min)
Richmond Capital hedge fund loses more than half its value
Market Watch Thu, 28 Feb 2008 1:11 PM PST
SAN FRANCISCO (MarketWatch) - A $524 million hedge fund run by London-based firm Richmond Capital LLP lost more than half its value in January, according to a database that tracks manager performance in the $2 trillion industry.
Market Watch Thu, 28 Feb 2008 1:11 PM PST
SAN FRANCISCO (MarketWatch) - A $524 million hedge fund run by London-based firm Richmond Capital LLP lost more than half its value in January, according to a database that tracks manager performance in the $2 trillion industry.
Peloton hedge fund to liquidate 1 billion ABS fund
Reuters via Yahoo! UK & Ireland News Thu, 28 Feb 2008 2:53 PM PST
Peloton Partners, a London-based hedge fund, became the latest victim of the global credit market crisis when it told investors on Thursday that it was shutting one fund and was considering what to do with another.
Reuters via Yahoo! UK & Ireland News Thu, 28 Feb 2008 2:53 PM PST
Peloton Partners, a London-based hedge fund, became the latest victim of the global credit market crisis when it told investors on Thursday that it was shutting one fund and was considering what to do with another.
CDO watch: $97bn awaiting downgrade
FT Alphaville - London,UK
Not long having put 430 mortgage-backed CDOs up for review, Fitch has announced its latest slew of downgrades. Approximately $97bn of rated notes across 197 ...
FT Alphaville - London,UK
Not long having put 430 mortgage-backed CDOs up for review, Fitch has announced its latest slew of downgrades. Approximately $97bn of rated notes across 197 ...
Global Issuers
U.S. Risks To The Forecast: What Can Go Worse-Or Better
We publish our economists' best estimate monthly of where the U.S. economy may be heading. However, we realize that financial market participants also want to know how we think things could go worse--or better--than what our base case scenario calls for. So we're instituting a new quarterly feature called "Risks To The Forecast," in which we'll project two additional scenarios based on a 20% upside and a 20% downside case.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABSDQTVsLgHxhilpuHQJhuV2VU
U.S. Risks To The Forecast: What Can Go Worse-Or Better
We publish our economists' best estimate monthly of where the U.S. economy may be heading. However, we realize that financial market participants also want to know how we think things could go worse--or better--than what our base case scenario calls for. So we're instituting a new quarterly feature called "Risks To The Forecast," in which we'll project two additional scenarios based on a 20% upside and a 20% downside case.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABSDQTVsLgHxhilpuHQJhuV2VU
Sovereigns
For China's Economy In 2008, Half-Steam Ahead Is Still Plenty Quick
After five years of sizzling double-digit growth, China's economic expansion in 2008 should finally ease to a single-digit rate. The cooler pace will result from both the significant global economic slowdown and domestic policy tightening, rather than from the severe snowstorms that hit China early this year. Still, we expect China's real GDP to again expand strongly, by 9.3% in 2008. Capital spending growth should ease slightly from the previous year, while contribution from net exports is likely to fall.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABSDQTVsLgHxhilpuHQJhuV2VW
For China's Economy In 2008, Half-Steam Ahead Is Still Plenty Quick
After five years of sizzling double-digit growth, China's economic expansion in 2008 should finally ease to a single-digit rate. The cooler pace will result from both the significant global economic slowdown and domestic policy tightening, rather than from the severe snowstorms that hit China early this year. Still, we expect China's real GDP to again expand strongly, by 9.3% in 2008. Capital spending growth should ease slightly from the previous year, while contribution from net exports is likely to fall.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABSDQTVsLgHxhilpuHQJhuV2VW
by Mebane Faber
Ethos and Profond fail with UBS motions
http://www.ipe.com/news/Ethos_and_Profond_fail_with_UBS_motions_27258.php
http://www.ipe.com/news/Ethos_and_Profond_fail_with_UBS_motions_27258.php
Investors Sue Hedge Fund Over Dead Man’s Promise
FINalternatives - Thursday February 28, 11:57 GMT
FINalternatives - Thursday February 28, 11:57 GMT
NEW YORK (HedgeWorld.com)—Elliott Management Corp. filed a federal lawsuit against a competing hedge fund manager, Cedar Hill Capital Partners LLC, and associated entities, claiming that the defendants conspired with a former employee of Elliott to steal confidential and proprietary information. ......
Splitting Headaches (The Economist)
The fears over the municipal-bond market in America look overdone. For the moment, the government should resist the urge to intervene.
The fears over the municipal-bond market in America look overdone. For the moment, the government should resist the urge to intervene.
Sailfish hedge fund to shut down
Stamford Advocate Wed, 27 Feb 2008 2:16 AM PST
A Stamford hedge fund that has been steadily losing assets since the summer has informed investors that it has begun liquidating its remaining holdings and plans to close up shop for good.
Stamford Advocate Wed, 27 Feb 2008 2:16 AM PST
A Stamford hedge fund that has been steadily losing assets since the summer has informed investors that it has begun liquidating its remaining holdings and plans to close up shop for good.
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Yield Curve Corner
Bernanke says Fed prepared to help U.S. economy
February 27, 2008 07:26 PM ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke
on Wednesday signaled a readiness to cut interest rates again
to prevent further damage to the weak U.S. economy, even as
he took note of rising inflation risks.
http://links.reuters.com/r/GPOMR/YZPWQ/PWE37/BX6RI/6F1EL/YT/t
February 27, 2008 07:26 PM ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke
on Wednesday signaled a readiness to cut interest rates again
to prevent further damage to the weak U.S. economy, even as
he took note of rising inflation risks.
http://links.reuters.com/r/GPOMR/YZPWQ/PWE37/BX6RI/6F1EL/YT/t
Bernanke Says Sagging Growth Is Chief Concern
New York Times - United States
By EDMUND L. ANDREWS WASHINGTON — Ben S. Bernanke, chairman of the Federal Reserve, signaled his readiness on Wednesday to bolster the economy with cheaper ...
New York Times - United States
By EDMUND L. ANDREWS WASHINGTON — Ben S. Bernanke, chairman of the Federal Reserve, signaled his readiness on Wednesday to bolster the economy with cheaper ...
Federal Reserve Chairman Ben Bernanke indicated the central bank will continue cutting interest rates in a bid to prevent a dangerous downward spiral in the U.S. economy. Bernanke's testimony to Congress was the clearest indication yet that inflation fears have not swayed the Fed from the most aggressive campaign of interest rate cuts in decades. Bloomberg/ClipSyndicate (28 Feb.) , The Washington Post (28 Feb.)
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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/FSHShawaii059_G11.jpg
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Iranian Situation and Other Man Made Disasters
Iran 'number one world power': Ahmadinejad
AFP via Yahoo! News Thu, 28 Feb 2008 5:08 AM PST
President Mahmoud Ahmadinejad declared on Thursday that Iran was the world's "number one" power, as he launched a bitter new assault on domestic critics he accused of siding with the enemy.
AFP via Yahoo! News Thu, 28 Feb 2008 5:08 AM PST
President Mahmoud Ahmadinejad declared on Thursday that Iran was the world's "number one" power, as he launched a bitter new assault on domestic critics he accused of siding with the enemy.
Iran president to show off influence on Iraq visit
Reuters via Yahoo! News Thu, 28 Feb 2008 0:39 AM PST
Iranian President Mahmoud Ahmadinejad makes a landmark trip to Iraq on Sunday seeking to show that Iran is an influential player in Iraqi politics which the United States can ill afford to isolate or ignore.
Reuters via Yahoo! News Thu, 28 Feb 2008 0:39 AM PST
Iranian President Mahmoud Ahmadinejad makes a landmark trip to Iraq on Sunday seeking to show that Iran is an influential player in Iraqi politics which the United States can ill afford to isolate or ignore.
European firm thrives in Iran despite sanctions
Washington Post Wed, 27 Feb 2008 4:34 PM PST
TEHRAN (Reuters) - British executive Robert Mills says his express delivery firm is enjoying explosive growth in Iran, despite tightening international sanctions on the Islamic Republic over its disputed nuclear plans.
Washington Post Wed, 27 Feb 2008 4:34 PM PST
TEHRAN (Reuters) - British executive Robert Mills says his express delivery firm is enjoying explosive growth in Iran, despite tightening international sanctions on the Islamic Republic over its disputed nuclear plans.
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Opalesque’s Corner
Editor's Note
- Eton Park Capital, DiMaio Ahmad Capital acquire Merrill Lynch shares
- Opalesque Exclusive: Millennium Partners acquires European multi-strat hedge fund
- Systeia Capital Management becomes a wholly-owned CAAM subsidiary and appoints a new board, Systeia co-founders to `move on`
- Fund launches: BB Europe opens L/S equities fund, Dunheath Capital Partners to launch China commodities hedge fund in April, Former Tiger Asia managing director to launch Asia L/S hedge fund, Canadian hedge fund opens office in New York and launches hybrid fund with $100m, BlueGold Capital Management launches commodities hedge fund using SunGard`s Kiodex for risk management, F&C planning further 130/30 launches but are advisers interested?
- Performance: Oracle Investment Management reports stellar performance in 2007, Conquest Capital`s new agricultural fund returns over 25% since launch in December, Henderson Group`s profit more than doubles on high-fee investments such as hedge funds, Richmond Capital lost half its money in January, Hedge fund Sailfish winds down, Sanders Morris to write down value of high-yield hedge fund investment, HFN averages overview: January 2008
- Allocations: Opalesque Exclusive: Global macro, volatility and keeping only `aggressive` L/S managers, French asset manager reshuffles hedge fund allocations
- Valuation: Illiquid assets expose fund directors to legal risk
- Risk Management: Buy side risk managers forum releases `Risk Principles for Asset Managers`
- Green Investing: Connective Capital`s picks are in solar, energy storage, water . and biofuels
- Indices: Greenwich Composite Investable Hedge Fund Index approved as UCITS eligible by Luxembourg regulator, BX Indexes tied to AAA subprime bonds tumble, hedge fund liquidates
- Credit Crunch Update: UBS shareholders agree to $12bln infusion from Singapore government and unnamed Middle East investor, Fannie and Freddie: the big hopes to arrest U.S. housing slump, Latest acronym VIEs (variable interest entities) latest source of concern on Wall Street, Dark clouds over monolines slowly lifting, Bernanke addresses Congress (video)
- Reports / Analysis: Short first, ask questions later: An analysis of SEC fails to deliver data, Report: Investors seek better advisor performance after unjustified high fees and inadequate services, Report: Building BRICs - Is the rapid rise of Brazil, Russia, India and China sustainable?
- Views: Hedge funds slow to adopt UCITS III operational structure, prefer to retain Caymans structure, Contrarian investor James Henderson continues to see long-term value in the small cap market, Outlook positive for investors in Russia as election approaches, says Barings, Morgan Stanley` Stephen Roach doubts the US will avoid recession, advises Asian investors to be careful
- Institutions: Watson Wyatt calls for pension funds to take `a hard look` at alpha fees, JPMorgan announced first Canadian pension fund`s investment in 130/30 fund, U.S.` PBGC adopts new diversified investment policy, plans to invest 10% in alternatives, ith interest rates low and stock markets falling, some U.S. pension funds are feeling the heat
- Regulators: Australian regulators to discuss margin lending
- Legal: Investor sues Pacificor over promise made by late Michael Klein
- People: Opalesque Exclusive: Sameer Sethna resigns from Zimmer Lucas Partners, Goldman Sachs names vice chairmen, Citigroup names Brian Leach risk chief, Bermudez retiring, MCF Asset Management appoints president, COO and director of sales, Welch hires Dawson-Herman healthcare pro, Commerzbank hires Medcraft for alternative strategy wing in Singapore
- Commodities: Portrait: Andrew J. Hall hits jackpot in oil as commodity boom roars on, now manages money for Blackstone and Phibro, Oil, gold hit highs in rush to commodities, inflation concerns, euro`s rise on dollar spur investors` shift
- Europe: Swiss Fund Data: Markets exerted negative influence on the fund business in January 2008, alternatives` assets increased by 3.8% from CHF18.8bln to CHF19.5bln ($18.34bln), returned + 0.7%, BoE urges better risk management strategy
- Asia: Equity funds in India suffer record losses (16.50%) in January, record outflow of foreign money, Rival centres, Hong Kong and Singapore, share growth of alternatives industry
- Tech Update: First fully-integrated hedge fund platform now available for Citadel Solutions clients on Bloomberg
- Events: How I Became A Quant: Leading professionals give personal views of their careers in quantitative finance, Chicago and Berkeley
- Sovereign Wealth Funds: Buy-out groups now go to wealth funds instead of Wall Street banks
- Activist News: New York Times` About.com division chief to leave, DE Shaw invests $250 million in Mumbai-based HDIL unit
- News Briefs: MFA spent $1.9m lobbying in 2007, some of it over proposed hedge fund tax law, S&P Licenses Bear Stearns to trade OTC contracts based on S&P/Case-Shiller Home Price indices, Jim Simons donates $60m to university in New York, Eurex plans to increase stake in European Energy Exchange EEX, China appoints JPMorgan as primary dealer, Credit Suisse buys 20% of Mongolian bank, Haochen Hu won this year`s World TopInvestor competition with gains of almost 785% over 12 months
- And Finally. Stephen Roach is giving away his stuffed pandas
- Logon: http://www.opalesque.com/main.php?act=archive
- Eton Park Capital, DiMaio Ahmad Capital acquire Merrill Lynch shares
- Opalesque Exclusive: Millennium Partners acquires European multi-strat hedge fund
- Systeia Capital Management becomes a wholly-owned CAAM subsidiary and appoints a new board, Systeia co-founders to `move on`
- Fund launches: BB Europe opens L/S equities fund, Dunheath Capital Partners to launch China commodities hedge fund in April, Former Tiger Asia managing director to launch Asia L/S hedge fund, Canadian hedge fund opens office in New York and launches hybrid fund with $100m, BlueGold Capital Management launches commodities hedge fund using SunGard`s Kiodex for risk management, F&C planning further 130/30 launches but are advisers interested?
- Performance: Oracle Investment Management reports stellar performance in 2007, Conquest Capital`s new agricultural fund returns over 25% since launch in December, Henderson Group`s profit more than doubles on high-fee investments such as hedge funds, Richmond Capital lost half its money in January, Hedge fund Sailfish winds down, Sanders Morris to write down value of high-yield hedge fund investment, HFN averages overview: January 2008
- Allocations: Opalesque Exclusive: Global macro, volatility and keeping only `aggressive` L/S managers, French asset manager reshuffles hedge fund allocations
- Valuation: Illiquid assets expose fund directors to legal risk
- Risk Management: Buy side risk managers forum releases `Risk Principles for Asset Managers`
- Green Investing: Connective Capital`s picks are in solar, energy storage, water . and biofuels
- Indices: Greenwich Composite Investable Hedge Fund Index approved as UCITS eligible by Luxembourg regulator, BX Indexes tied to AAA subprime bonds tumble, hedge fund liquidates
- Credit Crunch Update: UBS shareholders agree to $12bln infusion from Singapore government and unnamed Middle East investor, Fannie and Freddie: the big hopes to arrest U.S. housing slump, Latest acronym VIEs (variable interest entities) latest source of concern on Wall Street, Dark clouds over monolines slowly lifting, Bernanke addresses Congress (video)
- Reports / Analysis: Short first, ask questions later: An analysis of SEC fails to deliver data, Report: Investors seek better advisor performance after unjustified high fees and inadequate services, Report: Building BRICs - Is the rapid rise of Brazil, Russia, India and China sustainable?
- Views: Hedge funds slow to adopt UCITS III operational structure, prefer to retain Caymans structure, Contrarian investor James Henderson continues to see long-term value in the small cap market, Outlook positive for investors in Russia as election approaches, says Barings, Morgan Stanley` Stephen Roach doubts the US will avoid recession, advises Asian investors to be careful
- Institutions: Watson Wyatt calls for pension funds to take `a hard look` at alpha fees, JPMorgan announced first Canadian pension fund`s investment in 130/30 fund, U.S.` PBGC adopts new diversified investment policy, plans to invest 10% in alternatives, ith interest rates low and stock markets falling, some U.S. pension funds are feeling the heat
- Regulators: Australian regulators to discuss margin lending
- Legal: Investor sues Pacificor over promise made by late Michael Klein
- People: Opalesque Exclusive: Sameer Sethna resigns from Zimmer Lucas Partners, Goldman Sachs names vice chairmen, Citigroup names Brian Leach risk chief, Bermudez retiring, MCF Asset Management appoints president, COO and director of sales, Welch hires Dawson-Herman healthcare pro, Commerzbank hires Medcraft for alternative strategy wing in Singapore
- Commodities: Portrait: Andrew J. Hall hits jackpot in oil as commodity boom roars on, now manages money for Blackstone and Phibro, Oil, gold hit highs in rush to commodities, inflation concerns, euro`s rise on dollar spur investors` shift
- Europe: Swiss Fund Data: Markets exerted negative influence on the fund business in January 2008, alternatives` assets increased by 3.8% from CHF18.8bln to CHF19.5bln ($18.34bln), returned + 0.7%, BoE urges better risk management strategy
- Asia: Equity funds in India suffer record losses (16.50%) in January, record outflow of foreign money, Rival centres, Hong Kong and Singapore, share growth of alternatives industry
- Tech Update: First fully-integrated hedge fund platform now available for Citadel Solutions clients on Bloomberg
- Events: How I Became A Quant: Leading professionals give personal views of their careers in quantitative finance, Chicago and Berkeley
- Sovereign Wealth Funds: Buy-out groups now go to wealth funds instead of Wall Street banks
- Activist News: New York Times` About.com division chief to leave, DE Shaw invests $250 million in Mumbai-based HDIL unit
- News Briefs: MFA spent $1.9m lobbying in 2007, some of it over proposed hedge fund tax law, S&P Licenses Bear Stearns to trade OTC contracts based on S&P/Case-Shiller Home Price indices, Jim Simons donates $60m to university in New York, Eurex plans to increase stake in European Energy Exchange EEX, China appoints JPMorgan as primary dealer, Credit Suisse buys 20% of Mongolian bank, Haochen Hu won this year`s World TopInvestor competition with gains of almost 785% over 12 months
- And Finally. Stephen Roach is giving away his stuffed pandas
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
Hedge Fund Picks: Solar, Energy Storage, Water ... and Biofuels
Source: Greentech Media
Despite all the difficulties facing the ethanol industry -- such as shrinking margins, canceled plants, environmental concerns and even a study suggesting an ethanol fire is harder to extinguish than a gasoline fire -- Rob Romero, a managing partner at Connective Capital, still thinks biofuel investments are worth pursuing. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: Greentech Media
Despite all the difficulties facing the ethanol industry -- such as shrinking margins, canceled plants, environmental concerns and even a study suggesting an ethanol fire is harder to extinguish than a gasoline fire -- Rob Romero, a managing partner at Connective Capital, still thinks biofuel investments are worth pursuing. More... <http://www.hedgefund-index.com/newstoday.asp>
Hedge Fund Picks: Solar, Energy Storage, Water … and Biofuels
Greentech Media - Cambridge,MA,USA
At a hedge-fund investment panel Wednesday at the Cleantech Forum in San Francisco, he listed biofuel as one of his interest areas as a fund manager. ...
Greentech Media - Cambridge,MA,USA
At a hedge-fund investment panel Wednesday at the Cleantech Forum in San Francisco, he listed biofuel as one of his interest areas as a fund manager. ...
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Funnies, Facts, Quotes, etc….
fallible FAL-uh-bul, adjective:
1. Liable to make a mistake.
2. Liable to be inaccurate or erroneous.
2. Liable to be inaccurate or erroneous.
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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
respective publishers, as referenced by header and appropriate hypertext links.
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