Main News

 

GM's Woes: Itself, Oil and CDS Holders
By: Emma Trincal, Senior Financial Correspondent
Posted: 07/07/2008 3:49:46 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15110.html

 

TD Bank takes C$96m hit on mispriced UK derivatives
Toronto-Dominion Bank, Canada's second-largest bank, on Friday declared a pretax hit of about C$96m (?60m) on the mispricing of credit index swaps by a senior UK trader who has quit its investment dealer division.  (Financial Times)
http://mail2.efnmail.co.uk/r/377991/MTk4MTI1OjE3ODY2/

 

News reports about Lehman Brothers (NYSE:LEH) possibly being sold to Barclays (NYSE:BCS) actually pushed the firm's valuation down by the close yesterday. To us, the implosion of houses such as Bear, Stearns, LEH and, yes, eventually even Goldman Sachs (NYSE:GS) suggests that this pure "agent" institutional dealer business model may be doomed. Are the other heavy users of leverage residing in hedge fund land next?

Full Story...

 

Volatility brings threat of client exodus
A year into the credit crunch, wealth advisers are being forced to work overtime to retain their nervous clients.
http://mail2.efnmail.co.uk/r/377852/MTk4MTI1OjE3ODY0/

 

LIFFE EYES OVER-THE-COUNTER CDS MARKET
London's Liffe is looking to break into the market for credit default swaps with the launch of a new set of contracts and integrated OTC clearing through its Bclear operation.
More on this story: http://www.finextra.com/fullstory.asp?id=18692

 

Study: Expect "avalanche" of distressed securities, institutions
Financial companies will lose $1.6 trillion as a result of the global financial crisis, according to a confidential study from hedge-fund manager Bridgewater Associates. Many securities and financial institutions will become distressed because they will not be able to raise enough capital to cover their losses, the report says. Banks and brokerages have posted writedowns of more than $400 billion since last year but have raised only $321 billion in capital during the same time period. Bloomberg (07 Jul.)

 

Credit markets face a tough six months
The credit markets have endured a brutal 12 months since volatile conditions started almost a year ago. After a difficult first half, bankers warn the next six months may be just as tough.
http://mail2.efnmail.co.uk/r/377842/MTk4MTI1OjE3ODY0/

 

Errors abound as hedge funds report shorting in U.K.
Errors have marred compliance with a new U.K. regulation that requires hedge funds to report when they are shorting stock in a company trying to raise capital. Nearly half of the disclosures have missed filing deadlines, were wrongly calculated or had other problems, a Financial Times analysis found. The rules imposed last month were designed to spot short selling that depressed a share's price at the time that a company was trying to raise capital by issuing rights for new shares. Financial Times (06 Jul.)

 

 

Friday , 04 Jul 2008
Latest reports from the two main uranium pricing organisations offer a glimmer of hope for uranium juniors after months of gloom which has seen the spot price collapse from $135 a pound down to below $60 a pound.

 

SocGen adapts to life after trading scandal
What does it take to put a dent into the French lead in equity derivatives? Most of the leading US and European banks have launched incursions into the market: some have performed well, others averagely, and some have withdrawn, more or less hastily, to lick their wounds.
http://mail2.efnmail.co.uk/r/377799/MTk4MTI1OjE3ODY0/

 

Looking Ahead: The Middle East
July 7, 2008 0459 GMT
A new series examining key issues in Stratfor’s third-quarter forecast begins with Middle East director Kamran Bokhari and a discussion of the biggest hot-button issue of that region: Iran.
http://www.stratfor.com/podcast/looking_ahead_middle_east

 

Geopolitical Diary:  Pakistan's Growing Chaos
July 7, 2008 0213 GMT
A suicide bombing marking the anniversary of a Pakistani military operation against militants highlights the deteriorating security and political situations in the country.
http://www.stratfor.com/geopolitical_diary/geopolitical_diary_pakistans_growing_chaos

 

Bridgewater Sees $1.6 Trillion in Credit Losses: Report
By: Jacob Bunge, Financial Correspondent
Posted: 07/07/2008 2:03:47 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15108.html

 

JPMorgan Marathon Embrace Begins Dimon Lure of Lost Hedge Funds
Bloomberg - USA
By Elizabeth Hester July 7 (Bloomberg) -- A year after Andrew Rabinowitz yanked his hedge fund's cash from Bear Stearns Cos. because of concern the Wall ...

 

RAB Capital Plunges 10% on Downgrade
By: Bill McIntosh, Senior Financial Correspondent
Posted: 07/07/2008 3:28:17 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15109.html

 

State fund to strengthen its risk team
France's ?34.5bn ($55bn) Fonds de Réserve pour les Retraites is planning to extend its risk management team to five while urging its external managers to take more risk.
http://mail2.efnmail.co.uk/r/377845/MTk4MTI1OjE3ODY0/

 

Prince Charles risks reputation on property
Over the years, a convention has developed by which leading members of the British royal family refrain from dabbling in commerce.
http://mail2.efnmail.co.uk/r/377868/MTk4MTI1OjE3ODY0/

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Yield Curve Corner

 

Dollar higher after Bush comments as G8 leaders meet
AFP -
... monetary officials are to speak later this week, including congressional testimony by Federal Reserve chairman Ben Bernanke on Thursday, he added. ...

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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/TRCbertha189_G12.jpg

 

Bertha Watch
Visit the WNBC.com hurricane section for maps, forecasts and more! http://www.wnbc.com/tu/5z8y2rY07.html

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Iranian Situation and Other Man Made Disasters

 

Oil drops on profit-taking, eyeing Iran
Reuters via Yahoo! News Mon, 07 Jul 2008 11:57 AM PDT
Oil dropped over $4 a barrel Monday on profit taking and signals that Iran will be more flexible in negotiations over its nuclear program.

 

Bush, Medvedev United on Iran, Divided on Missiles
Bloomberg via Yahoo! News Mon, 07 Jul 2008 5:46 AM PDT
July 7 (Bloomberg) -- President George W. Bush and Russian President Dmitry Medvedev said they will keep working jointly to block Iran's uranium enrichment efforts while indicating they made no progress on bridging differences over U.S. plans to deploy a missile defense system in Europe.

 

EU's Solana says nuclear talks with Iran 'difficult'
AFP via Yahoo! News Mon, 07 Jul 2008 4:02 AM PDT
EU foreign policy chief Javier Solana on Monday said he was not too optimistic about prospects for a breakthrough with Iran on its suspect nuclear programme, saying: "It's difficult."

 

U.S. holds navy exercise after Iran comments on Gulf
Reuters via Yahoo! News Mon, 07 Jul 2008 7:03 AM PDT
The U.S. Navy said on Monday it was carrying out an exercise in the Gulf, days after vowing that Iran will not be allowed to block the waterway which carries crude from the world's largest oil-exporting region.

 

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Opalesque’s Corner

 

- Opalesque Exclusive: How to create Sharia compliant hedge funds
- Emerging Markets Special: Opalesque Exclusive: Emerging markets specialist Exotix on the long term values of emerging markets, looking to develop involvement in the Iraqi stock market, Stocks traded on the Nigerian Stock Exchange have doubled over the past year, Inflation is putting emerging markets companies` at risk
- Launches: Ermitage launches diversified directional FoHF aiming for risk-adjusted returns, Aegon Asset Management eyes launching long-short equity products in H2, Unigestion to raise $350m through infrastructure fund of funds, Comment: Balance of power in seeding arrangements now favours new managers rather than investors
- Performance: Polar Capital posts rising profit and declining assets, considers launch of credit, environmental funds, Marshall Wace revenue rises to GBP220m, announces returns of 20.5% and 21.8% for Eureka and MW Tops funds in 2006
- Closures: Rock Capital`s L/S real estate hedge fund in talks to be wound up after hard year
- Emails show TC`s Hohn grappling with bad bets, `we have a real crisis`
- Data Explorers: Shareholders win as shorting costs for Financials escalate
- The power of a $1.6 trillion balance sheet: Marathon A.M. lured by JPMorgan`s prime brokerage
- Awards: Lyxor impresses with strategy, asset allocation and risk control as assets grow to $116bln, GAM excels in research and diligence, collects three awards
- Manager profile: Philip Falcone: From iron range hockey hero to Wall Street star
- People: GLG hires proprietary trader Ben-Brahim from Goldman, Millennium Global expands sales to German speaking Europe with new hire
- Credit Crunch Update: Bridgewater Associates: Financial market losses could top $1,600bln, Goldman says European banks need to raise up to $141bln, Tax credit to save UBS from hefty loss, Moody`s cuts UBS credit ratings, UBS, Credit Suisse may have to set aside $68bln, Credit Suisse cuts cost of top team in Europe, Survey: Credit crunch still has six months to go, say financial services firms, Dealing with the inflation beast, Treasuries rise on speculation credit-market losses to increase
- Comment: Investor doubt, fear are first signal for `market repair`, Is the VIX in denial?
- Legal: Refco banker Elsner, hedge fund manager Flöttl convicted in Bawag case, Comment: Bawag bounders convicted in Austria
- Regulatory: Confusion over UK rules on shorting: 20 of 41 disclosures have missed filing deadlines, contained wrong calculations or not been required, AIMA to launch third hedge funds code, Hedge Fund Code: senior hedge fund figures warned industry against ignoring standards and becoming complacent about threat of formal regulation, US lawmakers criticised Britain`s financial markets watchdog, some say London is hotbed of excessive speculation contributing to oil prices, CFTC scrutinized as congress looks into oil-price jump
- Commodities: G8: Climate, oil and food crisis not thoroughly dealt with, mentioned wish to minimize market transparency, Energy, basic materials shares may fall, Record oil prices hit shipping, Floods lift agriculture commodities in GSCI
- Other Voices: Matthew Ehrlich`s Oil Price analysis June 30, 2008
- In landmark environmental partnership between Abu Dhabi government-owned International Petroleum Investment Company and MTM and Man, Man will launch MENA  Associated Gas and Global Environment Fund
- Europe: French bank body fines SocGen $6m over Kerviel, SGAM takes an alternative view: Hedge funds are central to CEO`s strategy, Prisma Capital looks to attract European clients, to invest more in niche strategies, opens London office, Swiss absolute return manager EIM Group opens Dutch office, Northern Rock rivals, investors file complaints with European antitrust regulators concerning aid package
- Asia: China Southern and Oriental Patron given approval to form asset management joint venture in Hong Kong, India`s economy hits the wall, Asian funds increase use of multiple prime brokers, survey says
- LatAm: The Latin beat goes on: Latin America has changed dramatically in the past 10 years, average annual return way ahead of Asia, Lula to propose hedge fund limits at G-8 meeting
- Niche investing: GB Rarities Index shows stamps have increased in value by 38.6% in 2008 as property, stocks tank
- Administrators: Goldman Sachs opens Toronto hedge fund office
- Structured Products: High inflows in structured products show US catching-up
- Sovereign Wealth Funds: Opalesque Exclusive: Sarkozy plans SWF to counter speculative funds, Japan ponders sovereign wealth fund
- News Briefs: Merrill may sell Bloomberg stake, some of BlackRock, Merrill once shunned work for activist funds, but now advises one: Harbinger, Bush says China and India key to climate progress, France`s pension buffer fund FRR to award 2.1bln euros to US, Asia Pacific equity mandates
- . and finally: No matter how keen you are on pursuing a career in law enforcement when you grow up, please refrain from stealing a police car to do some impromptu patrolling of your own
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

Strategy | THE NEXT STEP IN OPEN INNOVATION
For some time, companies have drawn on the creativity of their best
suppliers and most ardent customers to develop new products and
services. Some pioneers are now looking beyond the old model: suppliers,
consumers, and other partners actually manage innovation and the
creative process itself. It's still early, but read "The next step in
open innovation" for some of the lessons we've learned so far.
http://e.mckinseyquarterly.com/W0RT018E9992732CE4E192B6457620

 

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Funnies, Facts, Quotes, etc….

 

gustatory GUS-tuh-tor-ee, adjective:

Of or pertaining to the sense of taste.

 

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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.