Archive: 06/04/2008
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Ken Akoundi
Main News
Credit default swaps for the financial services and banking sectors saw the most active trading in the US, led by Washington Mutual, CIT Group, Merrill Lynch, Lehman Brothers and Fannie Mae Sub, according to GFI, a leading inter-dealer broker for credit derivatives*. The telecom sector rounded out the most active list.
Industry Warns Of Continued Derivs Risk
Several industry figures have warned that action needs to be taken in order to solve the risks that exist within derivatives clearing.Read more
Several industry figures have warned that action needs to be taken in order to solve the risks that exist within derivatives clearing.Read more
The three major bond-rating firms are set to overhaul the way they collect fees as part of a settlement that could be announced as soon as this week with New York Attorney General Andrew Cuomo, people familiar with the matter said. An agreement with Moody's Investors Service, Standard & Poor's and Fitch Ratings would mark a significant step in the heightening investigations into why the gatekeepers of the bond market failed to predict that risky subprime mortgages would fall victim to a declining housing market, sparking billions of dollars in losses.
http://online.wsj.com/article/SB121251994060742205.html?mod=djemalertNEWS
http://online.wsj.com/article/SB121251994060742205.html?mod=djemalertNEWS
RBS Rises on Speculation Hedge Fund Will Seek Breakup (Update1)
Bloomberg.com Tue, 03 Jun 2008 9:31 AM PDT
June 3 (Bloomberg) -- Royal Bank of Scotland Group Plc led gains for European banking stocks on speculation that demand for its rights offer is strong and a U.K. hedge fund is buying shares to push for a breakup.
Bloomberg.com Tue, 03 Jun 2008 9:31 AM PDT
June 3 (Bloomberg) -- Royal Bank of Scotland Group Plc led gains for European banking stocks on speculation that demand for its rights offer is strong and a U.K. hedge fund is buying shares to push for a breakup.
Lehman Can't Shake the Monkey
Lehman Brothers may blame its sinking stock price on short sellers and rumormongers, but it is facing its greatest challenge to date as it is about to report its first quarterly loss since going public in 1994. Read More
Lehman Brothers may blame its sinking stock price on short sellers and rumormongers, but it is facing its greatest challenge to date as it is about to report its first quarterly loss since going public in 1994. Read More
HIGHFLYING HEDGE FUND LOSES INVESTMENT CHIEF
New York Post Tue, 03 Jun 2008 11:09 AM PDT
The credit crunch has claimed the job of yet another hedge fund pro. Alexander Jackson, who managed the credit and bond strategies for the once-highflying Polygon Investment Partners, is stepping down as chief investment officer. Reade Griffith...
New York Post Tue, 03 Jun 2008 11:09 AM PDT
The credit crunch has claimed the job of yet another hedge fund pro. Alexander Jackson, who managed the credit and bond strategies for the once-highflying Polygon Investment Partners, is stepping down as chief investment officer. Reade Griffith...
Goldman Sachs: Hedge Funds Short Financials in Q1
FINalternatives - New York,NY,USA
Hedge funds were net sellers of financial stocks in the first quarter after gobbling up sector assets in the preceding two quarters. ...
FINalternatives - New York,NY,USA
Hedge funds were net sellers of financial stocks in the first quarter after gobbling up sector assets in the preceding two quarters. ...
CFTC to Reexamine Index Fund Classification; Won't Raise Spec Limits
By: Jacob Bunge, Financial Correspondent
Posted: 06/03/2008 5:51:39 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1283.html
By: Jacob Bunge, Financial Correspondent
Posted: 06/03/2008 5:51:39 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1283.html
Oil price crash not imminent despite bubble: Soros
Reuters via Yahoo! News Tue, 03 Jun 2008 7:17 AM PDT
The phenomenal rise in oil prices show signs of a bubble, but a crash is not imminent, billionaire hedge fund manager George Soros told U.S. lawmakers on Tuesday.
Reuters via Yahoo! News Tue, 03 Jun 2008 7:17 AM PDT
The phenomenal rise in oil prices show signs of a bubble, but a crash is not imminent, billionaire hedge fund manager George Soros told U.S. lawmakers on Tuesday.
Tuesday , 03 Jun 2008
The long and winding political path of one of the world’s largest gold mines, the Kumtor project in Kyrgyzstan, has dropped exponentially after the nation’s parliament failed to ratify a new agreement.
The long and winding political path of one of the world’s largest gold mines, the Kumtor project in Kyrgyzstan, has dropped exponentially after the nation’s parliament failed to ratify a new agreement.
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Oil and the Saudi Peace Offensive. June 2, 2008 | 2113 GMT. Graphic for Geopolitical Intelligence Report. By George Friedman ... |
New LDI tools evoke 'false sense of security'
http://www.ipe.com/news/New_LDI_tools_evoke_false_sense_of_security__28130.php
http://www.ipe.com/news/New_LDI_tools_evoke_false_sense_of_security__28130.php
Analysis: Key element is missing from "stagflation" scenario
Strong productivity gains and flat wages will prevent a return of an era of rising prices mixed with stagnant growth as seen in the 1970s, analysts believe. "It is utter nonsense, in our view, to be talking incessantly about stagflation," Merrill Lynch economist David Rosenberg wrote in a note to clients. "Instead of running out and going on strike for higher pay, people are adjusting by driving less, riding their bikes, car-pooling, or using mass transit." Reuters (02 Jun.)
Strong productivity gains and flat wages will prevent a return of an era of rising prices mixed with stagnant growth as seen in the 1970s, analysts believe. "It is utter nonsense, in our view, to be talking incessantly about stagflation," Merrill Lynch economist David Rosenberg wrote in a note to clients. "Instead of running out and going on strike for higher pay, people are adjusting by driving less, riding their bikes, car-pooling, or using mass transit." Reuters (02 Jun.)
Citco Tops HF Survey
The Advent Software-sponsored third survey of hedge fund administrators from HedgeFund.net shows the top three firms in terms of assets under administration were Citco Fund Services, Citi and HSBC Securities Services.Read more
The Advent Software-sponsored third survey of hedge fund administrators from HedgeFund.net shows the top three firms in terms of assets under administration were Citco Fund Services, Citi and HSBC Securities Services.Read more
Strategy | COMPETITION FROM CHINA: TWO MCKINSEY SURVEYS
Chinese executives tell us they want their companies to expand overseas
but that a shortage of suitable managers constrains them. Executives
elsewhere say that they fear these companies more than they do
businesses in other parts of the developing world, but mainly as
low-cost competitors, and that they are doing very little to meet the
challenge. To learn more about how executives around the globe view the
early stages of what will surely be a historic advance, read
"Competition from China: Two McKinsey Surveys."
http://e.mckinseyquarterly.com/W0RT01986B5FA32CE4E192B98232A0
Chinese executives tell us they want their companies to expand overseas
but that a shortage of suitable managers constrains them. Executives
elsewhere say that they fear these companies more than they do
businesses in other parts of the developing world, but mainly as
low-cost competitors, and that they are doing very little to meet the
challenge. To learn more about how executives around the globe view the
early stages of what will surely be a historic advance, read
"Competition from China: Two McKinsey Surveys."
http://e.mckinseyquarterly.com/W0RT01986B5FA32CE4E192B98232A0
OSFI offers guidance on hedge contracts and seg fund guarantee capital requirements
Investment Executive Tue, 03 Jun 2008 9:37 AM PDT
The Office of the Superintendent of Financial Institutions has published a draft advisory that gives insurance companies guidance on the recognition of hedges in terms of their segregated fund capital requirements.
Investment Executive Tue, 03 Jun 2008 9:37 AM PDT
The Office of the Superintendent of Financial Institutions has published a draft advisory that gives insurance companies guidance on the recognition of hedges in terms of their segregated fund capital requirements.
Alternative Beta Fund returns 3.18% performance in first year...
Stonebrook Capital Management’s Alternative Beta Fund was up 3.18% with 6.39% volatility for its first 12 months ending April 30,...
Stonebrook Capital Management’s Alternative Beta Fund was up 3.18% with 6.39% volatility for its first 12 months ending April 30,...
Guest Article: Hedge Fund Portfolio Pricing Best Practices The recent recommendations put forward in April 2008 by the Presidents Working Group on Financial Markets call for much-needed changes to valuation policies, disclosure, and accounting practices within the hedge fund industry. Industry experts agree that change is both necessary and imminent, but recognize the significant challenges to implementing a consistent, transparent and fair pricing methodology throughout the alternative investment management sector. [more]
Hedge fund buys California land to cash in on US housing downturn
Three Arch Investors, a hedge fund, has come up with an innovative way of capitalising on the US housing market crash, buying tracts of abandoned development land in California, one of the states hardest hit by the downturn. (Financial Times)
http://mail2.efnmail.co.uk/r/368495/MTk4MTI1OjE3NTAx/
Three Arch Investors, a hedge fund, has come up with an innovative way of capitalising on the US housing market crash, buying tracts of abandoned development land in California, one of the states hardest hit by the downturn. (Financial Times)
http://mail2.efnmail.co.uk/r/368495/MTk4MTI1OjE3NTAx/
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Yield Curve Corner
Federal Reserve Chairman Ben Bernanke on Tuesday put the U.S. dollar squarely on the Fed's radar screen, saying its slide against
other currencies has led to an "unwelcome" rise in U.S. inflation and may be a factor in inflation expectations. Bernanke also suggested that the Fed is unlikely to lower official interest rates further, though his remarks suggested that - barring a further rise in inflation expectations - the Fed probably won't contemplate higher rates until there is more stabilization in home prices.
For more information, see: http://online.wsj.com/article/SB121249768018841153.html?mod=djemalertNEWS
other currencies has led to an "unwelcome" rise in U.S. inflation and may be a factor in inflation expectations. Bernanke also suggested that the Fed is unlikely to lower official interest rates further, though his remarks suggested that - barring a further rise in inflation expectations - the Fed probably won't contemplate higher rates until there is more stabilization in home prices.
For more information, see: http://online.wsj.com/article/SB121249768018841153.html?mod=djemalertNEWS
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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/FSHShawaii155_N6.jpg
U.N. chief plans urgent appeal on food prices<http://www.cnn.com/2008/WORLD/europe/06/02/un.food.prices.ap/index.html>
06/02/08 11:18 PM, EDT
The head of the U.N. plans to urge world leaders Tuesday to help bring down soaring food prices by immediately suspending or eliminating many price controls and other agricultural trade restrictions.
FULL STORY<http://www.cnn.com/2008/WORLD/europe/06/02/un.food.prices.ap/index.html>
06/02/08 11:18 PM, EDT
The head of the U.N. plans to urge world leaders Tuesday to help bring down soaring food prices by immediately suspending or eliminating many price controls and other agricultural trade restrictions.
FULL STORY<http://www.cnn.com/2008/WORLD/europe/06/02/un.food.prices.ap/index.html>
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Iranian Situation and Other Man Made Disasters
US urges allies to exploit Iran's weaknesses
AFP via Yahoo! News Tue, 03 Jun 2008 12:21 PM PDT
US allies must exploit Iran's weaknesses "more vigorously" and impose greater economic and political costs to prevent it from building a nuclear bomb, Secretary of State Condoleezza Rice said Tuesday.
AFP via Yahoo! News Tue, 03 Jun 2008 12:21 PM PDT
US allies must exploit Iran's weaknesses "more vigorously" and impose greater economic and political costs to prevent it from building a nuclear bomb, Secretary of State Condoleezza Rice said Tuesday.
|
Iran: The Media and the Conservatives' Power Struggle. June 3, 2008 | 2029 GMT. Hossein Entezami. ATTA KENARE/AFP/Getty Images ... |
Obama Backs Designating Iranian Revolutionary Guard as Terrorist Group
BY ELI LAKE - Staff Reporter of the Sun
WASHINGTON — Senator Obama's campaign, in advance of the candidate's speech to America's largest pro-Israel lobby, is highlighting the candidate's support for designating Iran's Revolutionary Guard forces as a foreign terrorist organization. Senator…
BY ELI LAKE - Staff Reporter of the Sun
WASHINGTON — Senator Obama's campaign, in advance of the candidate's speech to America's largest pro-Israel lobby, is highlighting the candidate's support for designating Iran's Revolutionary Guard forces as a foreign terrorist organization. Senator…
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Opalesque’s Corner
- Performance: Opalesque Exclusive: China fund manager believes correction is near its end, fund recovers in April with 2.26%, Opalesque Exclusive: Swing FX returned + 3.81% in May bringing YTD returns to 9.87%, Korean-American fund manager posts annual return of +67% at end of May in agricultural commodities fund
- Indices: Five of six Dow Jones Hedge Fund Strategy benchmarks post positive estimated returns for May, range from equity long/short +5.14% to equity market neutral -0.1%, Hedge funds recoup 2008 losses in second quarter, HFR says
- Artradis AB2 Fund wins best Asian Hedge Fund at the 5th Asian Masters of Hedge Awards
- Launches: Investec launches UK-domiciled version of Africa Middle East fund, Acuity launches 130/30 fund, Update: Pioneer launches second Ucits III cash-plus fund, will look to give long-short exposure to China and south Asia, Update: Thames River opens financials long/short fund
- Opalesque Exclusive: Asset Alliance Corp launches two sales and distribution companies, Hedge Harbor, in New York and London, sees MENA markets as next focus for investors
- M&A: Aegon to merge asset management businesses
- People: Opalesque Exclusive: Convertible bond hedge fund house Ferox hires JPMorgan`s David Persaud, Schroders hires Ronald Albahary to Strategic Investment Solutions, GLG Partners appoints new distressed expert Galia Velimukhametova, Phoenix Investment Partners hires Joe Terranova as Chief Alternatives Strategist, PIMCO hires three managers in bid to expand European ABS team, Heidrick and Struggles appoints S. John Kim and Daniel Edwards as co-heads, Global Financial Services Practice, Credit Suisse hires top team from Citigroup Global Wealth Management
- Portrait: The key base for hedge funds is propriety - Castle Hall Alternatives` Chris Addy
- Trends: Lyxor chief expects around 40 closures this year as hedge fund closure rate is rising, Goldman Sachs: Hedge funds shorted financials in Q1, Everyone`s equivocating: A lack of conviction among investors is the new vogue
- Views: Biggs sees worst over, predicts no recession
- Regulatory: Hedge funds petition SEC to streamline ETF Regulation for same rights as mutual funds
- Update: Wood Creek-SageCrest`s redemption dispute heads to court
- Legal: Former Absolute Capital's Homm cannot be located as forensic accountants investigate portfolios and stories of those swindled come to light, Hedge funds lose case against food distributor, Nash Finch, accused of improperly adjusting conversion rate, OFT confirms raiding the offices of RBS and Barclays, Wall Street waits on judge`s CSX ruling, which could reset how swaps get reported, Creditors side with Delphi in fight against HF Appaloosa, Bayou creditors sue Goldman unit for $20.6m, Judge will keep Amit Mathur (Entrust Capital Management fraud) in jail until sentence
- Asia: Mitsubishi UFJ to sell fund that tracks Winton Capital`s performance, Winton to act as CTA, Man Group sells guaranteed managed futures fund in Hong Kong, Komodo hedge fund bets on Indonesia building, cement companies
- Opalesque Exclusive: Opalesque Roundtable finds endowments, sovereign wealth funds and large global hedge funds come back to Japan - What do they see?
- Credit Crunch Update: Wachovia chief ousted, shares lower on loan loss speculation, Shakeups, downgrades, hit US banks, Lehman to report 1st quarterly loss, considering capital raising, UK`s bank Bradford & Bingley issues bleak warning while slashing price of emergency fundraising, TPG to buy 23% stake in Bradford & Bingley, The `B&B effect` hits UK banks
- Environmental Investing: Tokyo city assembly voting to introduce carbon trading by 2010, TD Securities to be carbon future contract market maker in Montreal Climate Exchange, Bank Sarasin: Turning water shortage into opportunity, Investors jump on environmental wagon - Watson Wyatt
- Commodities: Soaring corn prices see ethanol investors react harshly as margins shrink, Crude oil trades above $127 as Mexico shuts ports, dollar falls, Drop in metal prices `unlikely to be for long`, Soros to warn of commodities bubble
- Comment: Congress, regulators target `bad` speculation, Pickens says CFTC probe of oil a `waste of time`
- Exchanges: Update: Chicago exchanges strike $1bn settlement, E-Forex comes of age
- News Briefs: `Nasdaq Last Sale:` Nasdaq to sell real time data online, PerTrac upgrade to be released today, Barclays Capital adds to credit fund raising, Canadian investment manager Acuity launches 130/30 fund, BBA failure on Libor calculations may cause dislocations, group to increase oversight, Swedish banks to sell Nordic Central Securities Depository to settlement service Euroclear
- And Finally. In-laws from hell: Couple `divorced without knowledge`
- Logon: http://www.opalesque.com/index.php?act=archive
- Indices: Five of six Dow Jones Hedge Fund Strategy benchmarks post positive estimated returns for May, range from equity long/short +5.14% to equity market neutral -0.1%, Hedge funds recoup 2008 losses in second quarter, HFR says
- Artradis AB2 Fund wins best Asian Hedge Fund at the 5th Asian Masters of Hedge Awards
- Launches: Investec launches UK-domiciled version of Africa Middle East fund, Acuity launches 130/30 fund, Update: Pioneer launches second Ucits III cash-plus fund, will look to give long-short exposure to China and south Asia, Update: Thames River opens financials long/short fund
- Opalesque Exclusive: Asset Alliance Corp launches two sales and distribution companies, Hedge Harbor, in New York and London, sees MENA markets as next focus for investors
- M&A: Aegon to merge asset management businesses
- People: Opalesque Exclusive: Convertible bond hedge fund house Ferox hires JPMorgan`s David Persaud, Schroders hires Ronald Albahary to Strategic Investment Solutions, GLG Partners appoints new distressed expert Galia Velimukhametova, Phoenix Investment Partners hires Joe Terranova as Chief Alternatives Strategist, PIMCO hires three managers in bid to expand European ABS team, Heidrick and Struggles appoints S. John Kim and Daniel Edwards as co-heads, Global Financial Services Practice, Credit Suisse hires top team from Citigroup Global Wealth Management
- Portrait: The key base for hedge funds is propriety - Castle Hall Alternatives` Chris Addy
- Trends: Lyxor chief expects around 40 closures this year as hedge fund closure rate is rising, Goldman Sachs: Hedge funds shorted financials in Q1, Everyone`s equivocating: A lack of conviction among investors is the new vogue
- Views: Biggs sees worst over, predicts no recession
- Regulatory: Hedge funds petition SEC to streamline ETF Regulation for same rights as mutual funds
- Update: Wood Creek-SageCrest`s redemption dispute heads to court
- Legal: Former Absolute Capital's Homm cannot be located as forensic accountants investigate portfolios and stories of those swindled come to light, Hedge funds lose case against food distributor, Nash Finch, accused of improperly adjusting conversion rate, OFT confirms raiding the offices of RBS and Barclays, Wall Street waits on judge`s CSX ruling, which could reset how swaps get reported, Creditors side with Delphi in fight against HF Appaloosa, Bayou creditors sue Goldman unit for $20.6m, Judge will keep Amit Mathur (Entrust Capital Management fraud) in jail until sentence
- Asia: Mitsubishi UFJ to sell fund that tracks Winton Capital`s performance, Winton to act as CTA, Man Group sells guaranteed managed futures fund in Hong Kong, Komodo hedge fund bets on Indonesia building, cement companies
- Opalesque Exclusive: Opalesque Roundtable finds endowments, sovereign wealth funds and large global hedge funds come back to Japan - What do they see?
- Credit Crunch Update: Wachovia chief ousted, shares lower on loan loss speculation, Shakeups, downgrades, hit US banks, Lehman to report 1st quarterly loss, considering capital raising, UK`s bank Bradford & Bingley issues bleak warning while slashing price of emergency fundraising, TPG to buy 23% stake in Bradford & Bingley, The `B&B effect` hits UK banks
- Environmental Investing: Tokyo city assembly voting to introduce carbon trading by 2010, TD Securities to be carbon future contract market maker in Montreal Climate Exchange, Bank Sarasin: Turning water shortage into opportunity, Investors jump on environmental wagon - Watson Wyatt
- Commodities: Soaring corn prices see ethanol investors react harshly as margins shrink, Crude oil trades above $127 as Mexico shuts ports, dollar falls, Drop in metal prices `unlikely to be for long`, Soros to warn of commodities bubble
- Comment: Congress, regulators target `bad` speculation, Pickens says CFTC probe of oil a `waste of time`
- Exchanges: Update: Chicago exchanges strike $1bn settlement, E-Forex comes of age
- News Briefs: `Nasdaq Last Sale:` Nasdaq to sell real time data online, PerTrac upgrade to be released today, Barclays Capital adds to credit fund raising, Canadian investment manager Acuity launches 130/30 fund, BBA failure on Libor calculations may cause dislocations, group to increase oversight, Swedish banks to sell Nordic Central Securities Depository to settlement service Euroclear
- And Finally. In-laws from hell: Couple `divorced without knowledge`
- Logon: http://www.opalesque.com/index.php?act=archive
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Misc. Items of Interest
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Funnies, Facts, Quotes, etc….
bagatelle ag-uh-TEL, noun:
1. A trifle; a thing of little or no importance.
2. A short, light musical or literary piece.
3. A game played with a cue and balls on an oblong table having cups or arches at one end.
2. A short, light musical or literary piece.
3. A game played with a cue and balls on an oblong table having cups or arches at one end.
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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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