Main News

 

Stagflation Threat May Favor Hedge Funds
By: Chidem Kurdas, New York Bureau Chief
Posted: 07/01/2008 3:35:25 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3524.html

 

Hedge fund exodus fails to surface
http://www.ipe.com/news/Hedge_fund_exodus_fails_to_surface_28408.php

 

 

GLOBAL - The credit crisis is likely to have a strong negative impact on the real economy for at least the next three years, according to delegates at Fund Forum International 2008.

 

Ruling could allow widespread mortgage rescissions
A U.S. District Court judge transformed a typical class-action lawsuit against mortgage lenders into a potential nightmare for the banking industry by ruling that borrowers could force banks to rescind mortgages tainted by inadequate disclosure. The case originated with a Wisconsin couple who found that the 1.95% rate they thought they had locked in for five years had doubled by their second monthly payment. The 7th U.S. Circuit Court of Appeals is expected to rule on the case any day. Reuters (30 Jun.)

 

Half-Time on 2008
July 1, 2008 1351 GMT
2008 is to be the year of living dangerously, with increasing oil prices and sagging growth in world economies. Nowhere is this more evident than in Africa, where hope for 2008 once flourished for the continent.
http://www.stratfor.com/podcast/half_time

 

Joint venture seeks to provide risk solution for hedge funds...
The Anglo-Irish venture will provide OTC valuation and advice on how to structure practical risk management processes. BIRS operates independently...

 

Through June 11, 2008, 33 companies have defaulted, affecting debt worth $38.3 billion. This already surpassed the 22 defaults recorded in all of 2007 and 30 defaults in 2006. Of the 33 defaults, 32 are domiciled in the U.S. and one is from Canada. The U.S. also leads in the number of "weakest links"--entities that are closest to the default threshold--with 117 of the 140 entities. By sector, media and entertainment, consumer products, and retail/restaurants continue to be the most vulnerable.

More

 

S&P may cut $55.8 bln of mortgage-backed CDO debt
Reuters - USA
NEW YORK, June 30 (Reuters) - Standard & Poor's on Monday said it may cut its ratings on Collateralized Debt Obligations exposed to risky residential ...

 

Asset Manager M&A Wilts, Except for Alternatives
By: Chidem Kurdas, New York Bureau Chief
Posted: 07/01/2008 1:14:07 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=dail&story=dail15099.html

 

Four Lessons I've Learned from Hedge Fund Managers by Brett Steenbarger

 

Fisking Michael Masters: Part II by Greg Newton

 

SRI indices underperformed in market turmoil
http://www.ipe.com/news/SRI_indices_underperformed_in_market_turmoil_28434.php

 

What Happened to China and India? These two Asian powerhouse bourses have fallen hard this year. And there aren't any technical reasons to expect a recovery anytime soon.
http://online.barrons.com/article/SB121480118165015345.html?mod=djemBF

 

China: Hu To Attend July G-8 Summit
July 1, 2008 1352 GMT
Chinese President Hu Jintao is scheduled to attend the G-8 summit in Japan on July 7-9, media...
http://www.stratfor.com/sitrep/china_hu_attend_july_g_8_summit

 

 

Is Your Firm 'In Vogue' In This Credit Crunched World ?

http://news.hereisthecity.com/news/business_news/8001.cntns

 

Venture-Backed IPO Tally: Zero
Economy Keeps Firms From Going Public
(By Kim Hart, The Washington Post)

 

Sovereign wealth favoring London's hedge funds
Sovereign-wealth funds are pouring money into London hedge funds, replacing debt funding starved off by the credit crisis. Assets in the class known as fund of hedge funds have grown 10% in the last six months to £700 billion, according to a survey by the magazine Hedge Fund Manager Week. The Guardian (London) (30 Jun.)

 

Goldman Sachs Petershill Fund, established by the US investment bank to take stakes in hedge fund managers, has ...
eFinancial News Mon, 30 Jun 2008 4:00 AM PDT
Goldman Sachs Petershill Fund, established by the US investment bank to take stakes in hedge fund managers, has acquired a minority interest in distressed assets manager Longacre Fund Management. It is believed to be Petershill's fifth stake.

 

U.S. seeks summons to force open UBS account records
U.S. prosecutors have applied for a court-issued summons aimed at unlocking UBS records of Americans who may have evaded taxes by hiding assets in Swiss bank accounts. Former UBS banker Bradley Birkenfeld pleaded guilty last month in Miami to conspiring to help a U.S. billionaire evade income taxes. Financial Times (01 Jul.)

 

Hedgie Clones Thriving - It's the Perfect Conditions
Financial Times - Tuesday July 01, 08:46 BST

 

Factories hit worldwide as commodity prices soar
July 01, 2008 08:11 AM ET
LONDON/TOKYO (Reuters) - Soaring commodity costs are denting
manufacturing activity in Asia and Europe and the outlook looks
bleak as new orders drop off in the face of rising prices, surveys
showed on Tuesday.
http://links.reuters.com/r/WZINC/CJAZ1/0R1OQ/V8VJI/EO2FD/YT/t

 

Monday , 30 Jun 2008
Energy shortages are likely to lead to a shortfall in aluminium supply, and higher prices, over the next two years according to a UBS analysis.

 

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Yield Curve Corner

 

A Bleak Outlook For June's Jobs
Forbes - NY,USA
Federal Reserve Chairman Ben Bernanke is indicating that he will raise interest rates, even though rising energy and food prices do not seem to be stoking ...

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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/FSHSasia183_MO.jpg

 

Poor Weather May Go Against the Grains Lower yields would boost fertilizers, biotech and agriculture chems.
http://online.barrons.com/article/SB121480128439615327.html?mod=djemBF

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Iranian Situation and Other Man Made Disasters

 

Oil rises on supply worries, Iran tensions
Reuters via Yahoo! News Tue, 01 Jul 2008 12:24 PM PDT
Oil prices rose on Tuesday on forecasts global supplies will struggle to keep pace with demand and concerns tensions between Israel and Iran could lead to a disruption of exports from the OPEC nation.

 

Iran's Bank Melli says no asset transfer despite sanctions
AFP via Yahoo! News Tue, 01 Jul 2008 1:48 AM PDT
Iran's Bank Melli has not transferred assets from its European branches despite fresh EU sanctions banning its operations, the bank's managing director was quoted as saying on Tuesday.

 

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Opalesque’s Corner

 

- Opalesque Exclusive: The 4th GCC Oil Boom (2002 - ????) Part 4: Will Islamic Finance create a new financial order? - Islamic Hedge Funds: Best of two worlds - The sky is the limit
- Opalesque Exclusive: As illiquidity is cited as the greatest risk for further economic crisis, asset based lending funds step in to provide liquidity for firms caught in the credit pullback - Part One
- Launches: Opalesque Exclusive: APS China Fund re-launched as long/short China focused equity fund, Opalesque Exclusive: Swiss asset manager launches European low-vol fund aiming for hedge fund-like returns, GFIA unit sets up Middle East/Africa/Frontier hedge FoF, RCM to manage new Peletier FoHFs, TriGlobal FX launches Cable Forex Funds, Henderson launches high alpha fixed income pooled funds for pension schemes, Denali to launch 130/30 strategy later this year
- Investcorp reaches $2bln in assets in single manager hedge fund platform
- Giant hedge fund SAC cuts its fixed-income business
- Former Bear Stearns A.M.`s chair Richard Marin launching POintwalk Solutions for hedge fund risk management, HDF Finance establishes itself in Singapore with the creation of HDF Finance Asia Private Limited, Nomura A.M. launches new venture for alpha-oriented global fixed income products and solutions
- Regulatory: U.S. Senate approves 3 nominees to SEC, FSA fee payers not happy at FSA board salaries in light of Northern Rock failures, FSA and U.S. SEC held the fourth meeting of the high-level dialogue, FPA forms `Best Practices` task force panel to offer guidance on new CFP standards of conduct
- People: 3 Degrees Asset Management hires Michael Gilmore as Managing Principal, Former Magnetar co-founder returns to co-manage small cap growth products at William Blair & Company, Daniel Allen joins Anchorage Advisors as a Partner, Highland Capital hires ex-Bear Stearns MD, Bernard Gartenlaub and Vikram Arneja hired to assist in launch of Intellian`s Advisory Services Division, Specialist currency investment manager Record plc appoints new CFO, Modern Bank taps former Bear exec Jeffrey Lane to be CEO, Top bankers join HFs, set up shops, ex-Morgan Stanley Daniel Allen joins Anchorage
- Opalesque Exclusive: Paper: The Case for Managed Futures
- Manager profile: Arpad Busson - `Splashing money around is wrong. Giving it back isn`t`
- Opalesque Exclusive: NYC hedge funds help build the largest multifamily building ever constructed by Habitat for Humanity
- Institutions: 4.5bln Austrian pension VBV looks to developed market ETFs for diversity, The big thinking behind big returns - biggest 10 endowments invested 32% to hedge funds, KPMG Survey: Institutional investors seek simplicity
- Europe: Isle of Man-based Oceanic hedge fund wins prestigious energy award, SGAM A.I. to expand hedge fund products into German, UK, and Nordic markets, UK funds cut stocks to year low
- Asia: Lipper: Singapore fund performance reflects cautious stance, hedge funds +0.9%, Japan relaxes tax code so foreign funds can avoid dual taxation
- Credit Crunch Update: Arrowgrass short-sells HBOS, Cover your shorts! (video), Banks seek changes to loan pricing, Lehman tumbles amid speculation, Lehman falls 11% on talk of possible discount sale to Barclays, Bank of NY Mellon CEO sees more losses from banks, Merrill and MBIA inside scoop (video), Credit crunch still has six months to go, say financial services firms, UK could take 3 years to recover, warns Horlick
- UBS Update: UBS faces writedown rumours, legal pressure, UBS departures clear way for board shake-up
- Environmental Investing: Head of CFTC says carbon to dominate global financial markets
- Commodities: Update: Trafigura`s hedge fund Galena to may lend GBP5m to tin producer, Barclays Capital rolls out power index, Gold gains as dollar may fall, speculators increase long positions in gold futures, Big oil firms say speculators not to blame for oil price, blame dearth of new supplies, Comment: Fisking Michael Masters, Hoarding nations drive food costs ever higher, What volatility in onions - with no futures market - teach us about oil prices, Comment: Speculation must be defined before it is blamed
- Exchanges: Turquoise receives regulatory approval from the FSA for multi lateral trading facility, CME and NASDAQ announce long term partnership, CME to list common stock only on NASDAQ, United Nations agency thinking about setting up exchange to trade internet capacity
- Book: Now George Soros says he has the answers to the credit crisis
- CAIA invites to participate in 2008 survey on finance knowledge
- SWFs to endure scrutiny and keep investing - survey
- News Briefs: Permal FX FoHFs changes name to Permal Macro Holdings, Dow suffers worst half since 1970, Pimco`s Gross wants Obama to double deficit if President, only way to battle inherited `mess`, Citigroup`s Pandit wants new bonus system in place by year end, Icahn plans to lobby Washington with form letters, Merrill Lynch holding in Credit Suisse Group AG above 3%, Stagflation grips Eurozone as interest rates look set to rise
- ...And Finally: The End is Near: Teens are ditching `Mom and Dad` and giving their parents nicknames like G-Dog and Big Anne
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

The world is getting happier, but one country tops the happiness list in a new survey. » Most and least happy

Goldman's Biggest Takeover: The United States

 

New York Times columnist David Brooks took a nice stroll today through the Wall Street and corporate donors to Barack Obama's campaign. Then, out of nearly nowhere, this left hook:

 

"Over the past few years, people from Goldman Sachs have assumed control over large parts of the federal government. Over the next few they might just take over the whole darn thing."

 

Say what?

 

Comments: http://blogs.wsj.com/deals/2008/07/01/goldmans-biggest-takeover-the-united-states?mod=djemWDB&reflink=djemWDB&reflink=djemWDB

 

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Funnies, Facts, Quotes, etc….

 

condign kuhn-DINE; KON-dine, adjective:

Suitable to the fault or crime; deserved; adequate.

 

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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.