Archive: 03/06/2008
Main News
March 5, 2008 2148 GMT
Though the world is watching the growing tensions between Venezuela and Colombia, the issue is a crisis manufactured by the government in Caracas for President Hugo Chavez's own ends, argues Peters Zeihan, Stratfor's director of global analysis. [more]
The U.S. Economy and the Next 'Big One'
March 4, 2008 2146 GMT
Americans have been waiting for the next cataclysmic economic downturn since 1929. There is now an emerging consensus that the United States has entered a recession. The question thus emerges whether this is in fact the next "big one," or just 1991 and 2001 all over again.
http://www.stratfor.com/weekly/u_s_economy_and_next_big_one
March 4, 2008 2146 GMT
Americans have been waiting for the next cataclysmic economic downturn since 1929. There is now an emerging consensus that the United States has entered a recession. The question thus emerges whether this is in fact the next "big one," or just 1991 and 2001 all over again.
http://www.stratfor.com/weekly/u_s_economy_and_next_big_one
After a few weeks of intense scrutiny regarding its role in the catastrophic US real estate collapse, Standard & Poor’s is refusing to hold off on its long-discussed plan to investigate the enterprise risk management (ERM) workings at non-financial firms.
Renaissance Technologies' grand experiment — a quantitative net long hedge fund designed to manage as much as $100 billion — lost about one-third of its assets since August.
Money managers hoping to win or maintain mandates with some of the largest public pension funds soon will need to have a plan about assessing climate change risk.
Only Strong Credit HFs To Survive?
Sovereign wealth funds are likely to replace hedge funds as a result of the current credit crisis.Read more
Sovereign wealth funds are likely to replace hedge funds as a result of the current credit crisis.Read more
Wanted: Bond auctioneer. Despite approaching 70%, auction-rate bond failures show no signs of easing. Yields averaged 6.52%, up from 3.63% a month ago. 521 auctions failed yesterday. "It's still a liquidity issue, not a credit issue," one bond trader said. Perhaps -- but for how long?
Worse than the dot.com crash? As of January, 2007, nearly 1,400 mutual funds were earning 15% or more. This January, just 270 funds hit that number -- an 80% decline. From December 2000 to December 2001 -- the bursting of the tech bubble -- the 12-month drop was only 57%.
Phil Duff, former Morgan Stanley exec, starts hedge-fund firm
Market Watch Wed, 05 Mar 2008 6:55 AM PST
Phil Duff, co-founder of FrontPoint Partners and a former executive at Morgan Stanley and Tiger Management, launched his own hedge-fund firm Wednesday, using a $500 million investment from a private-equity firm. Duff Capital Advisors said it's also in talks with several large financial institutions that may invest as much as $1.5 billion in new strategies.
Market Watch Wed, 05 Mar 2008 6:55 AM PST
Phil Duff, co-founder of FrontPoint Partners and a former executive at Morgan Stanley and Tiger Management, launched his own hedge-fund firm Wednesday, using a $500 million investment from a private-equity firm. Duff Capital Advisors said it's also in talks with several large financial institutions that may invest as much as $1.5 billion in new strategies.
Brevan Howard Asset Management plans new LSE-listed hedge fund
Market Watch Wed, 05 Mar 2008 6:16 AM PST
(Adds background and detail.) LONDON (MarketWatch) -- Brevan Howard Asset Management LLP said Wednesday it is considering the launch of a new multi-strategy hedge fund, BH Global Ltd., which will be listed on the London Stock Exchange. BH Global "will provide investors with exposure to a wide range of funds managed by Brevan Howard," the asset manager said. Brevan Howard is one of Europe's ...
Market Watch Wed, 05 Mar 2008 6:16 AM PST
(Adds background and detail.) LONDON (MarketWatch) -- Brevan Howard Asset Management LLP said Wednesday it is considering the launch of a new multi-strategy hedge fund, BH Global Ltd., which will be listed on the London Stock Exchange. BH Global "will provide investors with exposure to a wide range of funds managed by Brevan Howard," the asset manager said. Brevan Howard is one of Europe's ...
JPMorgan retains top ranking in hedge fund survey
JPMorgan remains the biggest US hedge-fund manager as total assets of the biggest hedge funds topped $1.6 trillion (?657.8bn) as of January 1, a new biannual survey published by Absolute Return magazine, a unit of HedgeFund Intelligence, showed. (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/345080/MTk4MTI1OjE2NjA4/
JPMorgan remains the biggest US hedge-fund manager as total assets of the biggest hedge funds topped $1.6 trillion (?657.8bn) as of January 1, a new biannual survey published by Absolute Return magazine, a unit of HedgeFund Intelligence, showed. (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/345080/MTk4MTI1OjE2NjA4/
Goldman is setting up a $4 billion fund to invest in BRIC (Brazil, Russia, India and China) properties, half of which has been earmarked for Russia.
» Read the Full Story
» Read the Full Story
Top Hedges Tighten Choke Hold
Financial Times - Tuesday March 04, 11:28 GMT
Financial Times - Tuesday March 04, 11:28 GMT
NEW YORK (HedgeWorld.com)—In a letter to investors in his Third Avenue Value Fund, Martin Whitman, the founder of Third Avenue Capital Management LLC, defended that fund's large position in MBIA Inc. ......
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Yield Curve Corner
Bernanke Call for Mortgage Forgiveness Puts Pressure on Paulson
Bloomberg - Wednesday March 05, 08:50 GMT
Bloomberg - Wednesday March 05, 08:50 GMT
Bernanke Call for Mortgage Forgiveness Puts Pressure on Paulson
Bloomberg - USA
Bernanke's call, in a speech yesterday to bankers in Orlando, Florida, went beyond a Paulson-backed plan that focuses on renegotiating interest rates. ...
Bloomberg - USA
Bernanke's call, in a speech yesterday to bankers in Orlando, Florida, went beyond a Paulson-backed plan that focuses on renegotiating interest rates. ...
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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/TRCjokwe065_MT.jpg
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Iranian Situation and Other Man Made Disasters
Radio Free Europe journalist accuses Iran of intimidation
International Herald Tribune Wed, 05 Mar 2008 11:18 AM PST
An Iranian-American radio journalist who is facing a yearlong prison term for her broadcasts to Iran through Radio Free Europe said Wednesday that Iran had threatened to seize her 95-year-old mother's home in Tehran if she did not return to serve a sentence for propaganda.
International Herald Tribune Wed, 05 Mar 2008 11:18 AM PST
An Iranian-American radio journalist who is facing a yearlong prison term for her broadcasts to Iran through Radio Free Europe said Wednesday that Iran had threatened to seize her 95-year-old mother's home in Tehran if she did not return to serve a sentence for propaganda.
Iran says will hold nuclear talks only with IAEA
Reuters via Yahoo! News Wed, 05 Mar 2008 10:23 AM PST
Iran on Wednesday rejected a call by world powers for more nuclear talks with their envoy and said it would in future discuss its uranium enrichment program only with the U.N. nuclear watchdog.
Reuters via Yahoo! News Wed, 05 Mar 2008 10:23 AM PST
Iran on Wednesday rejected a call by world powers for more nuclear talks with their envoy and said it would in future discuss its uranium enrichment program only with the U.N. nuclear watchdog.
US denies new Iraq talks with Iran
AP via Yahoo! News Wed, 05 Mar 2008 10:14 AM PST
Iraqi and Iranian officials said that the U.S. and Iran planned to meet Thursday for their fourth discussion on Iraqi security, but the U.S. said no meeting was planned.
AP via Yahoo! News Wed, 05 Mar 2008 10:14 AM PST
Iraqi and Iranian officials said that the U.S. and Iran planned to meet Thursday for their fourth discussion on Iraqi security, but the U.S. said no meeting was planned.
March 5, 2008 2206 GMT
Qatar balances relations with U.S., Iran
Sheikh Hamad bin Jasmin bin Jaber al-Thani, prime minister and chief diplomat for Qatar, has learned to balance relations with nations that have contradictory political interests, such as the U.S. and Iran. The small Middle Eastern nation has become adept at using its natural gas resources to increase its influence on the global landscape. Bloomberg (04 Mar.)
Sheikh Hamad bin Jasmin bin Jaber al-Thani, prime minister and chief diplomat for Qatar, has learned to balance relations with nations that have contradictory political interests, such as the U.S. and Iran. The small Middle Eastern nation has become adept at using its natural gas resources to increase its influence on the global landscape. Bloomberg (04 Mar.)
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Opalesque’s Corner
- Opalesque Exclusive: Hedge Funds World Awards honor Middle East players
- Opalesque Exclusive: Harris Alternatives` success story using active short sellers as a hedge to event risk, Hedge funds have new opportunities in global market, say Man Group speakers at conference
- Lipper honors European hedge fund performers with Hedge Fund Awards at London gala
- Focus Capital Update: $1bln Swiss/U.S. hedge fund Focus Capital faces liquidation, Focus Capital collapse adds to hedge fund fears, PSolve writes off $3m investment in Focus Capital
- Peloton Update: Peloton to apologise to investors for $2bln loss, Peloton`s fall highlights impact of even small funds when they use leverage to invest in illiquid markets
- Fund launches: Opalesque Exclusive: Scipion to launch new African hedge fund in April, Paragon Capital launches offshore secured debt fund, opens domestic fund to institutional investors, Radcliffe Group to launch volatility arbitrage hedge fund, Eddington responds to market liberalisation plans with UK-listed fund of funds product, 360 Asset Management launches Japan L/S hedge fund, to be seeded by Triple A Partners, Theorema rolls out concentrated fund, Credit Suisse plans emerging market debt fund, Brazil`s Explora launches first long-only fund
- Performance: Opalesque Exclusive: Bramdean Alternative negatively impacted by market conditions but global macro style posted a gain, intends to exit long-only exposure, FRM Credit Alpha performed well in February`s deteriorating markets (0.4% est.), Och Ziff hedge funds gain ground in February
- Assets: Altis surges past $1bln milestone, doubling assets in the last 12 months, Pharos plans to raise over $1bln from Middle East countries, Views: Global hedge fund assets will double by 2012, Man Group says
- Absolute Return AUM study: Top hedge fund assets surpass $1.6 trillion, JPMorgan still largest hedge fund manager
- Update on PerTrac study: Results of 2007 PerTrac Hedge Fund Database study show 14.5% increase in hedge fund reporting, fund launches slow
- M&A: Update: Blackstone closes acquisition of alternatives shop GSO
- Pequot separates venture capital and hedge fund units
- Survey: Wealthiest Europeans look to hedge funds, commodities
- Outlook: S&P: Fund of hedge funds cautiously optimistic for selective strategies in 2008, Pimco`s Ravano says sovereign wealth funds will replace credit hedge funds, only best hedge funds will survive in next 2 years, Pimco`s El-Arian on the housing economy (video)
- Credit Crunch Update: Ambac decides against splitting, MBIA CEO: $3.7bln loss reversible, Third Avenue`s Whitman defends position in MBIA, Citigroup may need additional cash as losses mount, Dubai says, Analysts see breakup of UBS as more likely, UBS says wealth management unit should stay with banking unit due to synergy, US Federal Reserve Chairman Bernanke urges banks to cut principal on troubled home loans
- Comment: Fitch: Liquidity crisis calls for asset management practice review
- Institutions: Watson Wyatt survey: UK pension managers boost hedge fund allocations, Watson Wyatt: Hedge funds exceeded fixed income in 2007 pension fund mandates for first time, Investment firms are benefiting from state Treasurer Richard Moore`s effort to diversify North Carolina`s $77bln pension fund, London borough seeks dynamic asset allocation manager
- Ex-Frontpoint Phil Duff opens asset-management firm that will help institutions meet long-term funding obligations
- Legal: U.S. fund accused of $60m fraud linked to subprime, Lakeshore: Hedge funds pose dilemma for regulators, MF Global: Feds are investigating trades
- Regulators: SEC proposes new crackdown on short-sale abuses
- People: Goldman fund management co-head Kraus to step down, Deutsche Bank moves top trading post to Hong Kong
- Bristol Capital joins ZATS marketplace to step in as buyer in the auction rate market
- Exchanges: Goldman likely to join planned CME competitor
- Commodities: CFA: New study finds significant benefits to investors who invest in precious metals, Goldman Sachs: fundamentals, not speculators, drive crude prices, View: Hedge funds are dictating oil prices, not fundamentals, Citibank offers investment opportunities in uranium, Making the traded-rice market more efficient is no easy task
- Europe: UK`s capital gain tax changes trigger rush to sell companies, EU majority backs clampdown on tax havens
- Australia: Australian asset advisers recommend hedge fund allocations
- Activist news: CSX and TCO to square off in hearing
- News Briefs: HF Picks: Top hedge funds trimmed Microsoft holdings in 4Q, added Apple, Standard & Poor`s reports February 2008 index returns, Richard Baker to improve MFA`s relations with politicians, CFTC approves program designed to allow for increased capital efficiency and transparency, CorrectNet and ProTrak International offer Turnkey solution for hedge funds, HSBC amongst first to incorporate in Vietnam
- . And Finally: U.S. towns vote to arrest Bush and Cheney
- Logon: http://www.opalesque.com/main.php?act=archive
- Opalesque Exclusive: Harris Alternatives` success story using active short sellers as a hedge to event risk, Hedge funds have new opportunities in global market, say Man Group speakers at conference
- Lipper honors European hedge fund performers with Hedge Fund Awards at London gala
- Focus Capital Update: $1bln Swiss/U.S. hedge fund Focus Capital faces liquidation, Focus Capital collapse adds to hedge fund fears, PSolve writes off $3m investment in Focus Capital
- Peloton Update: Peloton to apologise to investors for $2bln loss, Peloton`s fall highlights impact of even small funds when they use leverage to invest in illiquid markets
- Fund launches: Opalesque Exclusive: Scipion to launch new African hedge fund in April, Paragon Capital launches offshore secured debt fund, opens domestic fund to institutional investors, Radcliffe Group to launch volatility arbitrage hedge fund, Eddington responds to market liberalisation plans with UK-listed fund of funds product, 360 Asset Management launches Japan L/S hedge fund, to be seeded by Triple A Partners, Theorema rolls out concentrated fund, Credit Suisse plans emerging market debt fund, Brazil`s Explora launches first long-only fund
- Performance: Opalesque Exclusive: Bramdean Alternative negatively impacted by market conditions but global macro style posted a gain, intends to exit long-only exposure, FRM Credit Alpha performed well in February`s deteriorating markets (0.4% est.), Och Ziff hedge funds gain ground in February
- Assets: Altis surges past $1bln milestone, doubling assets in the last 12 months, Pharos plans to raise over $1bln from Middle East countries, Views: Global hedge fund assets will double by 2012, Man Group says
- Absolute Return AUM study: Top hedge fund assets surpass $1.6 trillion, JPMorgan still largest hedge fund manager
- Update on PerTrac study: Results of 2007 PerTrac Hedge Fund Database study show 14.5% increase in hedge fund reporting, fund launches slow
- M&A: Update: Blackstone closes acquisition of alternatives shop GSO
- Pequot separates venture capital and hedge fund units
- Survey: Wealthiest Europeans look to hedge funds, commodities
- Outlook: S&P: Fund of hedge funds cautiously optimistic for selective strategies in 2008, Pimco`s Ravano says sovereign wealth funds will replace credit hedge funds, only best hedge funds will survive in next 2 years, Pimco`s El-Arian on the housing economy (video)
- Credit Crunch Update: Ambac decides against splitting, MBIA CEO: $3.7bln loss reversible, Third Avenue`s Whitman defends position in MBIA, Citigroup may need additional cash as losses mount, Dubai says, Analysts see breakup of UBS as more likely, UBS says wealth management unit should stay with banking unit due to synergy, US Federal Reserve Chairman Bernanke urges banks to cut principal on troubled home loans
- Comment: Fitch: Liquidity crisis calls for asset management practice review
- Institutions: Watson Wyatt survey: UK pension managers boost hedge fund allocations, Watson Wyatt: Hedge funds exceeded fixed income in 2007 pension fund mandates for first time, Investment firms are benefiting from state Treasurer Richard Moore`s effort to diversify North Carolina`s $77bln pension fund, London borough seeks dynamic asset allocation manager
- Ex-Frontpoint Phil Duff opens asset-management firm that will help institutions meet long-term funding obligations
- Legal: U.S. fund accused of $60m fraud linked to subprime, Lakeshore: Hedge funds pose dilemma for regulators, MF Global: Feds are investigating trades
- Regulators: SEC proposes new crackdown on short-sale abuses
- People: Goldman fund management co-head Kraus to step down, Deutsche Bank moves top trading post to Hong Kong
- Bristol Capital joins ZATS marketplace to step in as buyer in the auction rate market
- Exchanges: Goldman likely to join planned CME competitor
- Commodities: CFA: New study finds significant benefits to investors who invest in precious metals, Goldman Sachs: fundamentals, not speculators, drive crude prices, View: Hedge funds are dictating oil prices, not fundamentals, Citibank offers investment opportunities in uranium, Making the traded-rice market more efficient is no easy task
- Europe: UK`s capital gain tax changes trigger rush to sell companies, EU majority backs clampdown on tax havens
- Australia: Australian asset advisers recommend hedge fund allocations
- Activist news: CSX and TCO to square off in hearing
- News Briefs: HF Picks: Top hedge funds trimmed Microsoft holdings in 4Q, added Apple, Standard & Poor`s reports February 2008 index returns, Richard Baker to improve MFA`s relations with politicians, CFTC approves program designed to allow for increased capital efficiency and transparency, CorrectNet and ProTrak International offer Turnkey solution for hedge funds, HSBC amongst first to incorporate in Vietnam
- . And Finally: U.S. towns vote to arrest Bush and Cheney
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
UBS launches commodities index to focus on food inflation
UBS on Wednesday will unveil the first commodities index built to allow investors to profit from rising food inflation. (Financial Times)
http://mail2.efnmail.co.uk/r/345086/MTk4MTI1OjE2NjA4/
UBS on Wednesday will unveil the first commodities index built to allow investors to profit from rising food inflation. (Financial Times)
http://mail2.efnmail.co.uk/r/345086/MTk4MTI1OjE2NjA4/
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Funnies, Facts, Quotes, etc….
busker BUS-kur, noun:
A person who entertains (as by playing music) in public places.
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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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