Main News

 

By TERI BUHL

Taxpayers are all but certain to take a hit on the securities the Federal Reserve accepted as part of JPMorgan Chase's takeover of Bear Stearns, according to a report by a hedge fund that is an investor in JPMorgan. The reports comes as the...full story

Wien's Ten Surprises for 2008 Spot-On, Mostly
By: Emma Trincal, Senior Financial Correspondent
Posted: 07/03/2008 3:07:04 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3527.html

 

Outlook Darker as Jobs Are Lost
New York Times - Friday July 04, 09:52 BST

 

The Bear's Back Now that the bear market has officially arrived, it may stick around and gnash its teeth for a while -- until it's scared away those who remain. (Video)
http://online.barrons.com/article/SB121512473043028031.html?mod=djemWR

 

The wisdom of prudence
Erste Bank’s chief risk officer, Bernhard Spalt, discusses M&A, financial crime and boundary risk issues in central and eastern Europe. More on regulatory news
More on Management...

 

Moody's shakes up structured finance team as CPDO scandal grows
The head of structured finance at New York-based rating agency Moody's is leaving after the firm announced disciplinary proceedings over mis-rating of European constant proportion debt obligations (CPDOs).

 

BASEL, Switzerland (HedgeWorld.com)—Close on the heels of reports from the Committee of European Securities Regulators and the International Organization of Securities Commissions on the role of credit rating agencies in structured finance, the Bank for International Settlements on Thursday [July 3] issued a report about ratings in structured finance that looked at "what went wrong and what can be done to address shortcomings?" The report, the work of a study group established by the BIS's Committee on the Global Financial System, was chaired by the Bank of England's Nigel Jenkinson, and incorporated feedback from the rating agencies themselves, investors and industry associations. ......

 

Nine European and global trade associations yesterday released Ten Industry Initiatives to Increase Transparency in the European Securitisation Markets in response tothe European Council of Finance Ministers’ (ECOFIN)call, in its October 2007 Roadmap, to “enhance transparency for investor, markets and regulators” by “mid-2008”.

Full Story...

 

FSA Ups Disclosure on CFDs
By: Bill McIntosh, Senior Financial Correspondent
Posted: 07/03/2008 3:49:47 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15106.html

 

Quant managers to shroud strategies
Quantitative managers have admitted they are likely to become less transparent, following lessons learnt from the credit crisis.

 

Floods Lift Ag Commodities in GSCI
By: Jacob Bunge, Financial Correspondent
Posted: 07/04/2008 2:45:00 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1331.html

 

Thursday , 03 Jul 2008
ECB President Jean-Claude Trichet appeases PIGS, the dollar thunders along, and investors confirm discovery of the investing world’s new Holy

Grail.

 

The Nimitz-class nuclear powered aircraft carrier embodies U.S. military power and global reach but has some inherent vulnerabilities. Analysis suggested by Stratfor member Michael Kuzik.
http://www.stratfor.com/analysis/u_s_kill_

 

Oil Rises on Concern Attack on Iran Will Disrupt Gulf Supply
Bloomberg.com Thu, 03 Jul 2008 7:54 AM PDT
July 3 (Bloomberg) -- Crude oil rose to a record on concern conflict with Iran over its nuclear program would cut Persian Gulf supplies. Ali Akbar Velayati , adviser to Iran's supreme leader, said his comments earlier this week that Iran must consider talks over its nuclear program didn't mean his country would accept Western incentives to abandon uranium enrichment, Agence France-Presse said.

 

J.P. Morgan's Jamie Dimon: 'We Almost Deserve $4 Gas'
Comments: http://blogs.wsj.com/deals/2008/07/03/jp-morgans-jamie-dimon-we-almost-deserve-4-gas?mod=djemWDB&reflink=djemWDB&reflink=djemWDB

 

Utilities are now in the heat of battle. While they would like to maximize their sales, they must now persuade their customers to save energy. It's a quest that will help defer investments in expensive and contentious infrastructure and in doing so, prevent the release of some harmful emissions.

Full Story...

GLG restricts rush on key Coffey fund
Financial Times Sat, 05 Jul 2008 3:51 PM PDT
GLG Partners, London's second-biggest hedge fund, has limited withdrawals from its flagship emerging markets fund after the announcement that star manager Greg Coffey was leaving prompted a rush for the door by investors.

 

Goldman star defects to GLG
Financial Times Sun, 06 Jul 2008 3:34 PM PDT
One of Goldman Sachs ’ top traders is leaving to join GLG Partners, London’s second biggest hedge fund, amid a wave of defections from the City to Mayfair-based fund managers.

 

Hunting for oil villains
Fortune via Yahoo! Finance Sat, 05 Jul 2008 7:37 AM PDT
Atlanta hedge fund manager Michael Masters has been a star witness in two recent Congressional hearings on how speculators are supposedly driving up oil prices. Masters and I don't see eye-to-eye on this issue, so I was surprised to get a call from him after my " Don't Blame The Oil Speculators " column went up on Fortune.com last week.

 

Lehman's Hedge-Fund Deals Leave Public in Dark: Jonathan Weil
Bloomberg - USA
It sells billions of dollars of assets to a newly formed hedge fund that: 3) is operating out of Lehman's office space, three floors down from the office of ...

 

Duff Capital merges with North Sound Capital...
North Sound was founded by Tom McAuley in 2001. He will continue to be the portfolio manager of DCA-North Sound...

 

Index mutual fund tracks hedge-fund techniques
The IQ Alpha Hedge Strategy Fund was designed to offer the costly benefits of hedge-fund investment at a fraction of the price. The open-ended mutual fund uses an index that mimics six hedge-fund strategies. The fund's net expense ratio is 1.64%. Index Universe (02 Jul.)

 

Foreclosure sales bottoming out U.S. housing market
U.S. cities saturated with home foreclosures are seeing rising home sales at the same time that prices fall. Fire-sale prices are coaxing first-time buyers and speculators into buying homes that banks are willing to sell at a loss. Only after banks sell off their inventory of foreclosed homes will the market perk up for private owners. Reuters (02 Jul.)

 

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Yield Curve Corner

 

Steel Urges Caution on Expanding Safety Net for Banks (Update1)
Bloomberg - USA
Paulson and Fed Chairman Ben S. Bernanke are scheduled to testify July 10 before the House Financial Services Committee on financial-market regulation. ...

 

Bernanke's French Lesson
Wall Street Journal - USA
Oil prices rose once again amid this dollar weakness, continuing to test the credibility of Fed Chairman Ben Bernanke. On Thursday, oil hit $146 a gallon, ...

 

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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/TRCborisdouglas185_G11.jpg

 

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Iranian Situation and Other Man Made Disasters

 

Iran says its nuclear policy has not changed
International Herald Tribune Sun, 06 Jul 2008 12:30 PM PDT
Iran's nuclear policy has not been changed by incentives, an Iranian government spokesman said, confirming that Iran would not comply with Security Council resolutions requiring it to stop enriching uranium.

 

Iran warns of Gulf blitzkrieg, Hormuz closure
AFP via Yahoo! News Sat, 05 Jul 2008 5:24 AM PDT
Iran's military chiefs warned on Saturday that the Islamic republic would shut down the Strait of Hormuz vital for oil exports and use "blitzkrieg tactics" in the Gulf if it came under attack.

 

Iran inflation tops 26 percent
AFP via Yahoo! News Sat, 05 Jul 2008 0:05 AM PDT
Iran's inflation rate, which has provoked intense criticism of the government, topped 26 percent in June, according to a central bank statement published in the press on Saturday.

 

Obama's Anti-Terrorism ManObama: Tough on terrorism
http://online.barrons.com/article/SB121512496251828161.html?mod=djemWR

 

Nobel winner Ebadi warns against war on Iran
AFP via Yahoo! News Thu, 03 Jul 2008 9:53 AM PDT
Nobel peace prize winner Shirin Ebadi warned the West on Thursday against launching a military attack against Iran or imposing economic sanctions over its contested nuclear programme.

 

 

Iran: More IAEA Supervision Possible
July 3, 2008 1400 GMT
Iran may allow for more supervision of its nuclear sites by the International Atomic Energy...
http://www.stratfor.com/sitrep/iran_more_iaea_supervision_possible

 

Diplomacy May Rule on Iran
But President Says All Options Are Open
BY BENNY AVNI - Staff Reporter of the Sun
Despite widespread speculation that a military attack against Iran is being considered, the country's foreign minister is saying he does not believe that America and Israel are positioned politically to carry out such a military "adventure" against the Islamic Republic this year.

 

Pace Quickens in Russia's Suit Against the Bank of New York
BY JULIE SATOW - Staff Reporter of the Sun
Russia's Federal Customs Service and the Bank of New York Mellon are ramping up the pace of their attacks in preparation for today's expected resumption of hearings in a $22.5 billion racketeering lawsuit.

 

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Opalesque’s Corner

 

- Fund launches: Sowood founder Jeff Larson to start another hedge fund, the LKCap Fund, in Q3, London based Fincere Ltd. launches global emerging markets hedge fund, Southridge hires ex-UBS strategist for market neutral quant fund launch, Highbridge seeks to raise $1bln for new distressed debt fund, Numeric launches market neutral statistical arbitrage funds, Former Perry Capital manager to resurface with new L/S equity fund, Sonterra Capital, Toronto-based Dynamic Funds unveils new FoHFs, HSBC fund arm eyes green and frontier market launches
- Performance: Opalesque Exclusive: Vision Capital Management posts double digit returns for June, CTA program gains 31.60% (est.), Lehman`s LibertyView hedge funds mostly up for May, down YTD, Globefin FoHFs up 5% from January to May, ramps up ABL portfolio, Lipper: HFs rebound strongly in May
- GLG limits withdrawals on flagship fund after Coffey`s departure
- Indices: Newedge indices: Alternative Edge Short-Term Traders Index up 1.35% in June, CTA Index up 2.26%, Renaissance Capital launches `green` IPO sub-index
- Listings: Global MENA Financial Assets Limited announces an offer price of 100 pence per share for its proposed initial public offering, Australian manager HFA Holdings` stock advances 2.9%
- Prime brokerage: Hedge funds shift prime brokers in `flight to quality`, Barclays first bank to offer OTC commodity service to hedge funds
- Kentucky endowment seeks managers for alternatives expansion
- Legal: Samuel Israel denied bail, tells judge he attempted suicide, Judge scolds hedge fund scammer who ran away, Absolute Capital aware that lawsuit naming it and former execs has been filed in U.S., Bear Stearns faces revised suit over collapse of hedge funds,  Former Refco CEO Bennett gets 16 years in prison, Charges against AIG Global executive dropped, Ex-analysts couple settles SEC insider trading case
- Investors: How to kill a short: Tshenguiz converts derivatives holding of almost 26% into shares to stop lending shares to short sellers, Investors confront HF manager Michael Regan, one stole his laptop
- Profile: Most of Pequot`s Byron Wien`s bold predictions were spot-on
- Jabre defends funds` role with banks` rights issues, blames long positions
- Credit Crunch Update: TPG pulls out of Bradford & Bingley`s rescue, B&B to raise GBP400m through rights issue, HBOS jumps on Bank West speculation, Bank of England warns of worse to come, UBS confirms facing further write-downs, Fed values Bear assets at $29bln, BIS studies what went wrong with structured finance ratings
- People: Cazenove Capital hires senior economist and strategist, Kinetic Partners hires Philip Martin as director, Philip Briggs as consultant, Paul DeRosa appointed to Ambac board of directors, EDHEC Research Centre adds seven new members to  international advisory board, Wall Street out-of-work banker resorts to sandwich board as jobs get scarce
- Comment: CDs` flaws exposed by tough conditions, Icelandic prime minister a strong critic, Excessive leveraging comes back to haunt as it unwinds, Listed futures contracts not as useful as they seem
- Europe: German legislators could pass law to protect distressed groups from investors such as PE and HFs, The most influential people in the European capital markets
- Asia: Japan`s financial services minister pushes for tax system overhaul, Activist investors face long haul in Japan, India: Hedge funds go short with FII help, Bangladesh: The new frontier - Citi`s CCO talks about the opportunities, Vietnam Dong investors use black market for dollars
- Fitch report: Outlook for emerging markets worsening
- Environmental Trading: UN reports 60% spike in sustainable energy investments, solar shines but wind remains largest renewables sector
- Commodities: Bets double on oil hitting $200 before year-end, Spiraling food prices on G8 summit agenda - key facts about food prices
- Event: Opalesque Exclusive:  A few available spaces remain for the 5th Hedge Fund Regatta, sailing dates July 10, July 14, August 20
- Finding the right home - re-domiciliation of hedge funds into Gibraltar
- Activist News: Kilpatrick holds off activist hedge fund Oliver Press Partners, Comment: Icahn`s hedge fund slump may signal problems for activists
- News Briefs: Update: Taylor Wimpey has no knowledge of hedge fund interest, Northern Trust wins $1bln FoHF administration mandate, JPMorgan makes more European job cuts, ECB takes eurozone rates to 7-year high, markets do not expect further imminent rises
- . And Finally: Man plans 300-mile flight in lawn chair tied to 150 balloons. Man also plans on landing, but that remains to be seen
- 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….

 

palaver puh-LAV-uhr; puh-LAH-vur, noun:

1. Idle talk
2. Talk intended to beguile or deceive.
3. A parley usually between persons of different backgrounds or cultures or levels of sophistication; a talk; hence, a public conference and deliberation.
4. To talk idly.
5. To flatter; to cajole.

 

meticulous muh-TIK-yuh-luhs, adjective:

Extremely or excessively careful about details.

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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.