Main News

 

Lehman Not an Easy Short Story
By: Emma Trincal, Senior Financial Correspondent
Posted: 06/05/2008 6:46:22 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15033.html

 

Why Lehman Isn't Going to $2
Yes, Lehman's in trouble. But Bear Two? Not likely. Read More

Don't Blame Index Funds for Commodities Boom: ETF
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 06/05/2008 12:13:39 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1288.html

 

Man Triples Japan Assets on Local Hunt for Returns
Bloomberg - Friday June 06, 09:34 BST

 

A look behind the hedge fund curtain
Hedge World Thu, 05 Jun 2008 10:25 AM PDT
Where are we in the credit crisis? How much longer will it last? People have taken to using baseball terms. Some see the trouble as almost over. We’re in the seventh inning, says an investment bank executive. Others argue we have a long way to go.

 

Copper Bearishness May Open Buying Window
By: Reuters
Posted: 06/05/2008 8:26:25 AM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3499.html

 

Investors' Growing Appetite for Oil Evades Market Limits
Hedge funds and big Wall Street banks are taking advantage of loopholes in federal trading limits to buy massive amounts of oil contracts, according to a growing number of lawmakers and prominent investors, who blame the practice for helping to push oil prices to record highs.
(By David Cho, The Washington Post)

 

Gold Futures Decline in NY as Dollar May Rise; Silver Gains
Bloomberg - USA
Federal Reserve Chairman Ben S. Bernanke said inflation is a ``significant concern'' yesterday, after saying on June 3 that the US central bank was ...

 

The great carbon bazaar *
Evidence of serious flaws in the multi-billion dollar global carbon credit market is uncovered by the BBC.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/business/7436263.stm

 

New York sets rating agency fee reforms
Forbes - NY,USA
It is aimed at increasing the independence of ratings agencies, which have been criticized for helping fuel the US subprime mortgage crisis by assigning ...

 

Reinventing the CDO wheel
Euromoney Magazine - london,UK
by Alex Chambers Many voices have called an end to structured credit. And yet, amid the continued retrenchment and fallout from several years of excessive ...

 

Thompson Defendants Say SEC Doesn't Know VIX
By: Christopher Faille, Senior Financial Correspondent
Posted: 06/05/2008 4:38:50 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15032.html

 

Leading Academics Talk to Hedge Fund Managers About Freud, Finance ...
Seeking Alpha - New York,NY,USA
Two sessions featuring academics yesterday illustrated why this is one of our favourite events on the pro-am hedge fund conference tour (see Tuesday’s ...

 

OECD sees improvement in rich countries next year
The Organization for Economic Cooperation and Development predicted U.S. and European economies would return to growth next year while stopping inflation from taking hold. The Paris-based organization of the world's 30 richest countries said there could be a rapid recovery among OECD member states if banking conditions improved, current high borrowing costs fell, and the benefits spread into the real economy. Financial Times (04 Jun.)

 

Subprime mess helped corporate pension obligations
Investor demand for the safety of high-grade bonds last year erased the pension-fund shortfalls of many big U.S. companies. The number of plans at S&P 500 companies that were in the black rose to 127 last year from 85 in 2006. Pension funds at the S&P 500 companies had a combined $63 billion surplus last year after five years in the red, according to Standard & Poor's. Bloomberg (04 Jun.)

 

Institutional Investment Managers Predicted to Increase Hedge Fund Allocations by 25 to 50 Percent Over the Next Two ...
PrimeNewswire via Yahoo! Finance Wed, 04 Jun 2008 5:00 AM PDT
PHILADELPHIA, June 4, 2008 -- Expect institutional investment managers to increase their hedge fund allocations 25 to 50 percent over the next couple of years, says Christopher C. Geczy, PhD, academic director of the Investment Management Consultants Association Alternative Investments Certificate program at the Wharton School of the University of Pennsylvania.

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Yield Curve Corner

 

Why Bernanke is No 'Obamacan'
U.S. News & World Report - Washington,DC,USA
But then along comes Federal Reserve Chairman Ben Bernanke to set the record straight. In a speech at Harvard, he pointed out that American productivity—the ...

 

In a striking insider's critique, a Federal Reserve policy maker said lending programs the central bank has created to combat the credit crisis distort private markets, encourage risky behavior and could endanger the Fed's independence. Federal Reserve Bank of Richmond President Jeffrey Lacker's remarks show that concerns that outsiders have raised about the Fed's actions -- in particular its rescue of the investment bank Bear Stearns -- are shared by some inside the Fed. http://online.wsj.com/article/SB121267589442648547.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/FSHSsoutheast157_G12.jpg

 

Plan for quake 'warning system' *
Nasa scientists have said they could be on the verge of a breakthrough in their efforts to forecast earthquakes.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7435324.stm

 

The weather risk market experienced robust growth for 2007-2008, with the number of contracts traded increasing 35 percent compared to the previous year, according to the Weather Risk Management Association (WRMA).

Full Story...

 

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Iranian Situation and Other Man Made Disasters

 

Iran says 16 killed in infiltration from northern Iraq: report
AFP via Yahoo! News Thu, 05 Jun 2008 11:07 AM PDT
Twelve militants and four police were killed during a border infiltration from northern Iraq into Iran's West Azerbaijan province, the Fars news agency reported on Thursday.

 

Iran refuses to give more details on weapons programme
AFP via Yahoo! News Thu, 05 Jun 2008 4:52 AM PDT
Iran, under heavy fire at a meeting of the UN atomic watchdog here for failing to come clean on alleged nuclear weapons work, has told the IAEA that the matter is "over", Iranian ambassador Ali Asghar Soltanieh said Thursday.

 

 

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Opalesque’s Corner

- Opalesque Exclusive: Dubious Chinese `registrars` AsiaDNR, Angelfish etc. feign domain grabbing attempts in fraudulent emails to boost their business, and what happened to that Italian manufacturer
- Seeders: Opalesque Exclusive:  AIG Investments partnering to seed managers with Larch Lane, intent is to allocate $50-$200m per deal
- Fund launches: Citadel hires Greenlight analyst for launch of L/S value fund, Ex-Silverback managers set up relative value hedge fund, Former Stratix exec Ian Goodman to launch L/S equity hedge fund, Morgan Stanley readies distressed FoFs, Morgan Stanley readies distressed FoFs, London house launches Blackfish Capital Talisman Fund, a double-asset, long/short energy fund, Harcourt launches multi-strategy emerging markets FoHF, Oppenheimer launches resources-focused hybrid FoF, VAM Funds launches maiden multi-strategy FoHF
- Fund closures: Update: Drake closes two remaining hedge funds, to return $4bln to investors next year
- Performance: Brevan Howard posts GBP218m ($425m) profit, master fund returned 25% last year, 11.3% YTD, Pooled funds of hedge funds return -4.0% in Q1, negative for 3rd consecutive quarter - BNY Mellon
- Assets: Contrarian`s fund recovers assets, now at about $4.3bln, but performance still down, Archer Capital Management to re-open, grow flagship fund by 20%, Beach Horizon fund passes asset milestone of $100m
- Indices:  HFRX indices are up in May, Equity Hedge Index best performer (+2.39%), Distressed Securities Index worst performer (-0.12%), Macro Index still best performer YTD (+10.51%)
- Trends: 40% of US hedge funds looking to expand internationally, according to TABB study, Carlyle co-founder Rubenstein says buyout firms to target asset managers, Global convertible bond issuance hits record high
- M&A Trends: Experts at Detroit conference say hedge funds keep middle-market M&A strong
- Comment: Trade errors: Exactly why should the investor pay for a manager`s mistakes?
- People: Hedge fund marketer Agecroft hires Tim Driscoll as managing director, First State Investments expands global equities team
- Mandates: BlackRock wins mandate to run Throgmorton trust using `hedge fund techniques`
- Institutions: Wharton School professor predicts institutional investment managers to increase hedge fund allocations by 25-50% over next two years, Drexel University ramps up alternatives exposure, including hedge funds, Pa. County doubles hedge fund allocation, Commonfund: Foundations turn to alternative investments
- Regulatory: FSA insider trading probe into Bradford & Bingley share slide, SEC warns on `return of the Boesky era` in increase of insider trading cases involving couples
- Legal: Additional arbitration claims filed against Bear Stearns and managers of collapsed fund
- Credit Crunch Update: Number of troubled U.S. banks is rising, more pain as credit crisis enters second wave,  Future of Lehman (video), Lehman short-selling hits record, GMAC and ResCap secure rescue financing, S&P warns on standards of European leveraged loans, Wall Street IPOs pulled
- SWFs in Credit Crisis: Kuwait preparing to further invest in US banks as Lehman Brothers seeks cash, Temasek rebuffed Bear Stearns plea, SWFs growing reluctant to make high profile investments
- Europe: Carne Global Financial Services opens office in Geneva, APEX Fund Services opens fund administration office on Isle of Man, UK inflation fears fuel bond rise, Leeson `thanks` fellow rogue trader Kerviel for profile boost, Leeson and the price of wisdom, BNP, SocGen respond to Fitch saying capital is adequate
- Middle-East: Beirut regains its sense of optimism; attracts interest from HFs and EM funds
- Commodities: Update: CFTC actions not likely to curb hedge fund futures` investment, Update: Phaunos Timber Fund moves to the main market and publishes prospectus, Hedge fund manager John Olson says high oil trade margins could weed out speculators, lower prices, Index: GSCI Energy Sector shines through May, Commodities` rapid fire (video), Gold remains timeless (video), UN`s Food and Agriculture Organization summit on food crisis: Financial firms investing in poor-country farms
- Environmental Trading: Green funds suffer major sell-off in March, investors concerned about return prospects, Financial adviser warns of green investments becoming the next dotcom bubble
- Activist News: Update: J-Power says beating fund TCI in proxy battle won`t be easy
- News Briefs: Markit announces new electronic novation consent service to meet industry commitments to New York Fed, Pluscios recognized as Women`s Business Enterprise, ARK recruits top fund raisers, to auction role in next Thurman film, Hirst painting, jet tour at wineries
- . And Finally: Plasma TV, guns, gym equipment, fridges, king-sized bed and $172,000 - Brazil prisoner had it all in his cell
- 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….

 

repletion ih-PLEE-shun, noun:

1. The condition of being completely filled or supplied.
2. Excessive fullness, as from overeating.

 

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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)

HFRX Indices https://www.hedgefundresearch.com/hfrx_reg/index.php?fuse=login&1170880431

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Regulatory Info

 

 

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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.