Main News

 

 

Fed, ECB Risk 1987 Rerun With Policy Drift
Bloomberg - USA
On June 3, Federal Reserve Chairman Ben Bernanke said the central bank was working with the Treasury to carefully monitor foreign-exchange market ...

 

Not the Worst of All Financial Worlds, But Bad Enough Policy makers are boxed in by bad choices. But how much worse can it get for financial stocks?
http://online.barrons.com/article/SB121324730241067505.html?mod=djemBF

 

Evidence of risk tolerance returning, says BIS
After the turmoil of the past year, there are tentative signs that investor appetite for risk is coming back, according to the findings of the Bank for International Settlements’ (BIS) latest Quarterly Review.

 

Finance ministers from the Group of Eight, the leading industrialized nations, are planning to discuss ways to curb the soaring oil and food prices that are threatening economic growth around the world. Experts say oil and food prices will likely emerge as the key problem at the G-8 meeting today. The G-8 nations, however, have few obvious tools for curbing commodities prices, officials say. ClipSyndicate/Bloomberg

 

S&P reveals error in ratings model for CPDO
Standard & Poor's found one error in a test model rating constant-proportion debt obligations, but the mistake had no effect on its ratings and was fixed in October, the company said. S&P and Moody's Investors Service awarded top ratings to the CPDOs, which borrowed money to bet on credit-default swaps. Some of the swaps have since collapsed. Moody's said three weeks ago that a computer glitch caused it to misgrade similar debt. That revelation prompted the SEC to look for other errors. Bloomberg (13 Jun.)

 

Data on Housing Relief Questioned
Washington Post - United States
By David Cho and Renae Merle Banks and mortgage firms are providing questionable information about the number of subprime mortgage borrowers they are ...

 

Fitch Ratings says in a special report published yesterday that the fast growing microfinance industry, which provides financial services to low-income populations in emerging markets, could be exposed to greater risks. Separately, the agency has published its rating criteria that formalise the agency's existing approach to microfinance institutions (MFIs).

Full Story...

 

Hedge investors hunt for next blockbuster strategy
Reuters - USA
By Laurence Fletcher LONDON (Reuters) - Top hedge fund bosses will debate whether an upturn in distressed investing or profitable macro strategies offer ...

 

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 Lehman Employees Lost $10 Billion as Shares Declined (Update2)

 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=afmAwq5ryKcE

 

The good news about Lehman Brothers is that it's no Bear Stearns. The bad news is that its survival will still be pretty painful for shareholders.
http://online.wsj.com/article/SB121332812679371025.html?mod=djemheard

 

Beyond the Hedge Fund Shakeout
BusinessWeek - USA
But that doesn't mean the world's largest financial institutions won't be the ultimate beneficiaries of a hedge fund industry in the throes of a shakeout. ...

 

Transparent Liquidation, Less Litigation? 

 

Windmill hit by shareholder claims
Jun 12 2008 23:03
A US hedge fund manager facing a lawsuit for blocking withdrawals is now being accused by one of its long-standing investors of "siphoning off" money Read more »

 

Senators Caught in Mortgage Fallout
New York Times - United States
... cabinet and celebrated advisers — received favorable deals from a company whose lax lending standards are at the center of the subprime mortgage crisis. ...

 

There are short-sellers, and then there are short-sellers. So says activist hedge-fund manager William Ackman, the ...
eFinancial News Fri, 13 Jun 2008 2:31 AM PDT
There are short-sellers, and then there are short-sellers. So says activist hedge-fund manager William Ackman, the founder of Pershing Square Capital Management and scourge of companies ranging from bond insurer MBIA to retailing giant Target.

 

Pequot’s Wien Surprised By Own ‘Surprises’
FINalternatives - Friday June 13, 08:44 BST

 

BNP Paribas acquires Bank of America's equity prime brokerage business
BNP Paribas has signed a definitive agreement to acquire the equity prime brokerage business of Bank of America, a transaction that will involve the transfer of client relationships, employees and technology systems. The deal is subject to regulatory approval and completion is expected in the second half of the year.

 

FSA cracks down on short selling *
The FSA takes steps to clarify short selling positions, the trading technique blamed for an HBOS share price slump.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/business/7452312.stm

 

Lessons on how to deal with terrorists.
http://online.wsj.com/article/SB121331280816168979.html?mod=djemEditorialPage

 

Thursday , 12 Jun 2008
The Fortis Metals Monthly says only supply-side disruptions will keep the copper price from declining in the second half of the year.

 

Pickens invests in water business
Oilman and corporate raider T. Boone Pickens believes riches can be won delivering water to a thirsty city. He has purchased thousands of acres in the Texas Panhandle and the rights to water from a vast underground aquifer. Pickens plans to build a pipeline to Dallas, more than 250 miles away. He could sell the city water worth about $165 million each year. BusinessWeek (12 Jun.)

 

Rising Stars of Securitization: Clifford Lee
Institutional Investor News’ inaugural issue of 10 Rising Stars of Securitization showcases up-and-coming executives in the securitization arena.Read more

 

NYC comptroller defends social investment model
New York City comptroller William Thompson Jr. has hit back at critics of New York City pension funds social investment model, claiming every other public pension fund should follow its model.

 

May consumer prices up 0.6 percent
June 13, 2008 08:36 AM ET
WASHINGTON (Reuters) - Soaring gasoline and energy prices helped
drive up U.S. consumer prices during May by the fastest rate
since November, a government report on Friday showed.
http://links.reuters.com/r/GPOMR/8EBHT/SDS14/LNS6S/FO4EJ/YT/t

 

U.S. Death Rate Hit Record Low in
2006
Journal Watch June 12, 2008
*************************
The age-adjusted U.S. death rate
dropped roughly 3% from 2005 to
2006, reaching an all-time low of
776 deaths per 100,000 individuals,
according to a CDC review of
national mortality data. Among the
other findings: * Deaths due to
either influenza or pneumonia saw
the biggest decline, a 13% drop. *
Mortality from other leading...
http://www.kurzweilai.net/email/newsRedirect.html?newsID=8872&m=29780

 

Global Stock Markets: Up, Down and Sideways? by Prieur du Plessis

 

Risk-Based Asset Allocation: Worth the Effort by Ioulia Tretiakova

 

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Yield Curve Corner

 

About-Face Spurs Yield AdvanceYields on the short end post their biggest rise in 26 years.
http://online.barrons.com/article/SB121339729826373481.html?mod=djemWR

 

Vital Signs: Bernanke Vows to Fight Inflation
BusinessWeek - USA
by James Cooper In the past few days, Federal Reserve Chairman Ben Bernanke has managed to put a new slant on data watching. His suddenly hawkish tone on ...

 

Mortgage Rates Hit 8-Month High on Inflation Concerns
FOXBusiness - USA
Comments from Fed Chairman Ben Bernanke and other board members have indicated they are closely monitoring inflation, perhaps signaling a rate increase at ...

 

Commodities ETF Use to Soar, Says Edhec
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 06/13/2008 12:35:58 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1301.html

 

Stratfor Geopolitical Intelligience Report

 

 

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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:

 

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New Human H5N1 Bird Flu Vaccine
From Baxter Shows Promise In Trial
Medical News Today June 12, 2008
*************************
Results of a phase I and phase II
trial on a new human vaccine against
the deadly H5N1 bird flu virus that
is made from cell culture instead of
embryonated eggs (making it faster
and cheaper to produce) show that it
is safe and effective against a
number of divergent strains. See
also: A Clinical Trial of a
Whole-Virus H5N1 Vaccine Derived
from...
http://www.kurzweilai.net/email/newsRedirect.html?newsID=8871&m=29780

 

54 tourists dead in China earthquake, no foreigners reported
Xinhua - China
Zhang Gu, the bureau's head, told a press conference here that 10668 tourists had been stranded after the quake, and the country used more than 20 flights ...

 

China quake lake 'now draining' *
Water floods an abandoned town as an unstable "quake lake" begins to drain faster in China's Sichuan province.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/world/asia-pacific/7445384.stm

 

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Iranian Situation and Other Man Made Disasters

 

Bush urges unity on Iran after meeting pope
Reuters via Yahoo! News Fri, 13 Jun 2008 11:11 AM PDT
U.S. President George W. Bush urged European allies on Friday to unite with Washington to prevent Iran from developing nuclear weapons.

 

Italy backs Bush's push on Iran
USA Today Thu, 12 Jun 2008 11:21 PM PDT
President Bush's appeal for a unified front against Iran fell on friendly ears Thursday when he met with Italian Prime Minister Silvio Berlusconi.

 

Iran to launch "international" fuel pricing in 2011
Reuters via Yahoo! India News Fri, 13 Jun 2008 9:05 AM PDT
TEHRAN (Reuters) - Iran, which has some of the cheapest fuel in the world, will begin selling gasoline at "international" prices in 2011, state radio said Friday.

 

Smuggling ring may have shared nuke design with Iran, others
USA Today Sun, 15 Jun 2008 11:00 AM PDT
An international smuggling ring may have secretly shared blueprints for an advanced nuclear weapon with Iran, North Korea and other rogue countries, The Washington Post reported Sunday.

 

US favours diplomacy in Iran nuclear row: Rice
AFP via Yahoo! News Sun, 15 Jun 2008 11:44 AM PDT
US Secretary of State Condoleezza Rice said on Sunday that the US administration was giving priority to solving its row with Iran over its nuclear programme through diplomatic channels.

 

Bush, French president united against Iran
AP via Yahoo! News Sat, 14 Jun 2008 9:07 AM PDT
Iran rejected a six-nation offer of incentives to stop enriching uranium on Saturday, prompting President Bush and French President Nicolas Sarkozy to jointly warn Tehran anew against proceeding toward a nuclear bomb.

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Opalesque’s Corner

 

- Fund Launches: Lyxor AM launches new infrastructure fund, Update: Threadneedle plans commodity hedge fund, SYW launches offshore long/short hedge fund
- Indices: Opalesque Exclusive: Newedge announces Short-Term Traders Index performance data, invites managers to submit for inclusion as fund rebalances, RBC Hedge 250 Index returns 1.72% (est.) in May, YTD stands at -1.05%, S&P launches thematic indices for Asian markets, State Street announces Private Equity Index results
- Regulatory: AIMA supports FSA consultation on retail access to FoHFs, would like to see changes in notice period and leverage restrictions and tax framework, UK`s FSA clamps down on short positions in companies undertaking rights issues, UK industry establishes independent International Centre for Financial Regulation
- Legal: Update: Samuel Israel`s possible getaway driver being questioned, Investors accuse SageCrest funds` manager, Windmill, of deliberate wrongdoing, Barclays to re-file revised version of hedge fund lawsuit against Bear Stearns, Knight Capital Group co-founder Kenneth Pasternak cleared of fraud charges, Comment: July 3 fireworks for Refco boss
- Trends: As banks shun loans, hedge funds move in, Interview - Aladdin Capital`s CEO Aminkhan Aladin: `The hedge fund industry is at another turning point`
- Strategies:  Cook Pine FoF ups allocations to distressed debt and E.M., bet against US mortgage market returned +22% in 2007, Making Gartmore funds sweat more
- Institutions: Regional Retirement Board (Mass.) considering $13.5m FoHFs allocation
- Beyond the hedge fund shakeout: recent stream of implosions the least of big banks`s worries right now
- Credit Crunch Update: CFO Erin Callan, COO Joseph Gregory step down days after Lehman reports $2.8bln loss, Lehman bonds find stability, executives` ouster sends share price to a six-year low, Lehman CEO Fuld in the spotlight after shakeup, Fitch Ratings downgrades Lehman Brothers to 'A+', outlook negative, US mortgage rates jump to highest level in nearly eight months, Three executives at RBS decline to take full stock rights, Embattled UBS wraps up bumper rights issue
- Credit Crunch View: Pequot`s Byron Wien says U.S. stocks fail to reflect recession
- Risk Management: Comment: The counterparty`s over - direction of counterparty risk in reverse mode, hedge funds now worry about banks
- Commentary: When you hear `new paradigm`, head for the hills
- People: Former CEO of CBOT Bernard Dan joins MF Global as North American COO, 100 Women in Hedge Funds appoints Suzanne Brenner and Stephanie Breslow to board
- Asia: Hedge funds, CME need to convince `cautious` China of benefits of their products, HSBC cuts ratings on equities to overweight and warns on inflation in Asian emerging markets, UBS fund management arm hopes for India entry by end 2009, Credit Suisse report: China and Hong Kong remain resilient in the face of inflation challenges
- Emerging Markets: Inflation will hit countries imposing trade restrictions the most - Templeton`s Mobius
- ETFs: Claymore is first to offer US-listed frontier index ETF, ETF Securities` short crude oil in high demand
- Environmental Investing: Carbon trading industry to double to US$128b this year compared with 2007, New study claims continuing support for carbon intensive industries undermines bank`s credibility as manager of new clean technology transfer funds, Emissions trading may cost more than it`s worth
- Commodities: Permal looks to raise gold exposure as protection against inflation, Sarasin manager says agribusiness a safe bet as food prices surge, Druckenmiller backed energy firm seeks to break oil well record, CME Group raises margin requirements on corn and soybeans as prices soar, OPEC president rules out output hike, `market not influencing prices`, UK Treasury publishes analysis of commodity market drivers ahead of G8 Finance ministers meeting this week, Oil rally of 697% surpassed dot-com craze in speculators` mania - Masters Capital Management
- Forex: SunGard Front Arena Whitepaper Series: Transformations in foreign exchange and money markets - and how to ride the wave, Technical approach drives growth as currency overlay managers see mixed results in Q1 2008 - BNY Mellon
- Exchanges: Singapore Exchange to widen pool or market participants by allowing banks as clearing members, Vienna Stock Exchange increases stake in Budapest Stock Exchange
- Service Providers: Report on Canada Hedge Fund Services 2008
- Activist News: Legg Mason and two other AIG investors push for board shake-up, Activists will find it harder to build secret stakes using derivatives after the TCI-CSCX case
- Book: The Lo down on hedge funds
- Events: Hedge Funds Care Inaugural NY Golf Tournament June 23, some spots available, 2nd Hedge Fund Fight night to begin five month pre-fight training
- News Briefs: CBOE members to vote on CBOT settlement July 17, Yahoo seals search deal with Google, SEB rated Best Asset Manager in Sweden,  Hermes outsources custody and investment operations to Northern Trust, Citigroup raises $430m in Singapore bond sale, Fitch sees risks for microfinance, publishes rating criteria, Babcock reels as shares plunge
- . And finally: what could happen if oil prices kept rising?
- 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….

 

apprise uh-PRYZ, transitive verb:

To give notice to; to inform; -- often followed by of; as, we will apprise the general of an intended attack; he apprised the commander of what he had done.

 

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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.