Main News

 

 

New Morgan Stanley Fund to Distribute Gains
By: Chidem Kurdas, New York Bureau Chief
Posted: 07/09/2008 12:56:43 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3531.html

 

IMF gloomy on growth, warns on inflation
July 09, 2008 08:21 AM ET
TOYAKO, Japan (Reuters) - It is hard to know how far the global
financial crisis still has to run, with the extent of further
credit losses hinging on what happens to the U.S. housing sector,
IMF chief Dominique Strauss-Kahn said on Wednesday.
http://links.reuters.com/r/HU05F/BJ7QR/2NTCS/659DP/ZR2FG/YT/t

 

Risk of tri-party repurchase concerns regulators
Federal Reserve Chairman Ben Bernanke said the Primary Dealer Credit Facility will likely be extended as regulators aim to improve the way the tri-party-repurchase market works. The PDCF was created in March as Bear Stearns came precariously close to collapsing and effectively became a backstop for investment banks that use tri-party repo. The move was made not so much because regulators were concerned about a run on Bear Stearns but because of the what might have happened to the Bank of New York and JPMorgan Chase, which handle the overwhelming majority of tri-party repo. Financial Times (08 Jul.)

 

New US hedge funds enjoy $19.5bn inflows
Inflows into new US hedge funds have grown to $19.5bn (?12.4bn) in the first half of this year, from $14bn in the same period last year, a study by Absolute Return magazine revealed.  (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/378724/MTk4MTI1OjE3ODk3/

 

Web of Lies
What to do when a competitor smears you anonymously on the Web? Call in the cybersleuths. Read More

 

Hedge Fund Seeding: Hot or Not? by Christopher Holt

 

 

 United Capital's Devaney Liquidates Funds, Investors Get Zero

 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aHL6OcyT9_7g

 

Duquesne's Druckenmiller May Buy Pittsburgh Steelers
By: Emma Trincal, Senior Financial Correspondent
Posted: 07/09/2008 3:17:31 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15114.html

 

Tuesday , 08 Jul 2008
The looming global power crunch, a still voracious Chinese infrastructure appetite, water shortages in Chile, and soaring production costs will all contribute to a sharply higher copper price, according to Citigroup.

 

. Boone Pickens, the energy tycoon from Texas, said the U.S. could reduce its dependence on foreign oil by 38% by using natural gas for transportation and increasing the use of wind power. "U.S. natural gas can replace foreign oil. It's the only natural resource we have that can do that," Pickens said. He is launching a multimillion-dollar advertising campaign to tout the plan and is aiming to discuss his ideas with both presidential candidates.

 

IAM Secures Management Buyout from Fortis
By: Bill McIntosh and Martin de Sa'Pinto, Senior Financial Correspondents
Posted: 07/09/2008 9:56:57 AM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15113.html

 

Falling Stocks Reduce Pension Funding
The worst performance by U.S. stocks in more than five years was the primary reason for the 4.8-percentage point decline in the funded status of the typical U.S. pension plan in June.

 

Shipping - an undiscovered asset class A new sector with promise is the ancient pastime of betting on ships and their voyages, which is springing to modern life and enjoying massive growth through the introduction of derivatives. This sector offers a variety of techniques for making money at both micro and global macro levels. Enterprising hedge funds and investment banks have already entered the field, which is as yet largely undiscovered by institutional investors. Relatively unaffected by the credit crunch, investments in this area have produced substantial returns recently. More...

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Yield Curve Corner

By PAUL THARP

Two of Wall Street's biggest figures - Ben Bernanke and Jamie Dimon - went public yesterday with their separate cures for some of the economy's deepening ills. Bernanke, the embattled Federal Reserve chief, unveiled a plan that...full story

Euroshares open higher after late Wall St rally; reassuring banks ...
Forbes - NY,USA
Crude prices dropped for the second straight day and reassuring noises from Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and ...

 

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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/FSHScalifornia191_G11L.jpg

 

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Iranian Situation and Other Man Made Disasters

 

Iran: Solana To Return To Discuss Incentives
July 9, 2008 1528 GMT
EU foreign policy chief Javier Solana will return to Iran to discuss the latest incentive package...
http://www.stratfor.com/sitrep/iran_solana_return_discuss_incentives

 

McCain, Obama slam Iran's missile test
CNN.com Wed, 09 Jul 2008 12:17 PM PDT
Sen. John McCain said Wednesday that Iran's missile test shows the need for an effective missile defense system, while rival Sen. Barack Obama believes it shows aggressive diplomacy, combined with sanctions, is necessary.

 

Iran tests missiles in Persian Gulf
AP via Yahoo! News Wed, 09 Jul 2008 8:49 AM PDT
Iran test-fired nine long- and medium-range missiles Wednesday during war games that officials said aimed to show the country can retaliate against any U.S. or Israeli attack, state television reported.

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Opalesque’s Corner

 

- Opalesque Exclusive: Canada`s new funds part 5 -  Long biased small-cap hedge fund returns +35.6% in 8 months, 19.2% in June, finds value in Canadian private placements, TSX plunges due to lack of confidence in market, Markets overlooking some Canadian small-cap gems
- Emerging Markets Special:  Opalesque Exclusive:  Investing in Pakistan, JS Fund Management launching 4 offshore versions of Pakistan investment funds
- Fund Launches: Opalesque Exclusive:  ING Investment Management launches Alternative Beta strategy
- New hedge fund launches total record $19.5bln, assets up, despite number of launches dropping 50% year-on-year, top five fund launches amass 71% of total capital
- Performance: Opalesque Exclusive: Conquest Macro returned 8.14% in June, managed futures fund up 4.7%, agricultural fund up 13.2%, Man Group`s AHL fund down 1.02% from last week, 22.9% over last 12 months, Altin:Fund returns 3.83% in June, 21.91% YTD
- Indices: HFRI Indices June 2008 (est.), best performer Short Bias Index (8.6%) and Macro Systematic Diversified Index (2.75%), worst performer Fixed Income-Convertible Arbitrage Index (-3.51%), Comment: Hedge Funds report worst first-half performance in two decades, Four of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted net-of-fees losses in June 2008, Greenwich Global Hedge Fund Indices:  Hedge funds only lose a fraction (-0.42%), downside protection of funds evident as they stay well ahead of the S&P 500 (-8.43%), Eurekahedge shows flat to negative month in June (0.2% avg), Parker FX Index +0.08% for month of May, top performer: Spectrum Currency Fund up +5.18%
- M&A / Stakes: GSAM gets stake in Longacre hedge fund, International Asset Management announces its return to independence through 100% management buy out from Fortis, Sciens Capital to purchase institutional business of Atlas Capital Group, both firms` HFs to go on same platform, Russell`s chief for Europe, ME and Africa resigns to start new firm focused on buying asset managers
- Institutions: Phoenix pension fund to seek long/short hedge FoFs for $190m allocation, JP Morgan Survey shows institutions with experience now prepared to go further in alternatives investments
- London Roundtable Commentary: Investors, market conditions favoring systematic CTAs, Hedge funds predict $1 trillion bank writedowns
- Queries over Hohn`s charity`s donations policy, GBP 300m mismatch between income and donations
- Investment pioneer John Templeton has died aged 95, Templeton saw credit crunch coming back in 2004
- Brian Hunter, the man who lost $6 bln - but is he such a bad guy, asks Fortune. New fund up 200% since November
- Research: Sophis study shows UK securities finance industry expects to increase trade and risk management budgets, Paper: Hedge fund contagion and liquidity
- Comment: Bestinvest predicts public interest in hedge funds if they become available to U.K. mass market, Rising junk default rates pose risk to hedge funds
- Legal: Update:  Ex fund manager Mark Lay must pay $212.9m in restitution and $590,000 forfeiture
- Rating Agencies: SEC examinations find shortcomings in credit rating agencies` practices and disclosure to investors, Comment: EU`s proposal to regulate credit agencies aimed at wrong target
- Credit Crunch Update: Fed ready to extend bank aid into next year if turmoil persists, Comment: If it means keeping regulations at a minimum, let`s have another bailout, Goldman`s illiquid assets decline
- Accounting: Banks: Controversial `mark to market` rule used to cushion losses faces increasing opposition, JPMorgan`s Dimon says `Things could actually get worse`, FAS 157 rule deterrent to M&A activity, The latest term in the accountant`s lexicon...`NAV Divergence`: `trading NAV` not the same as NAV reported in financial statements
- People: Opalesque Exclusive: Finisterre Capital hires Oliver Penn to risk management team, Former DTCC chairman Jill Considine to join Fulcrum Group as chairman of the board, SAS Capital Markets names Paul Devlin director of newly launched SAS Capital Markets US Practice, Cogo Wolf hires asset raiser
- Environmental Investing: US environmental investor coalition CERES addresses UN, lobbies SEC, and invests $10bln in renewables, Alberta will place C$4bln into launches of 2 new funds to cut greenhouse gas emissions, G8 agree emissions cuts needed
- Commodities: Pickens calls for massive switch to domestic natural gas to slash oil imports by 1/3, Pickens` energy plan (video), Overview: Sharp fall in oil sparks late rally in equities, Druckenmiller and Loeb backed oil exploration firm attempting to drill world`s deepest well, $5.5m 20% share could yield reserves valued at $13.7bln at today`s oil prices, Livestock takes its place in the commodity lineup as demand for ETCs increases, Timber investment company to float on AIM, seeking to raise GPB40m, Commodities are strong, but which ones are strongest?, Commodity supercycle - myth or reality? (video), DJ-AIG Commodity Index up 8.9% in June
- Exchanges: Six Asian exchanges plan trading link
- Sovereign wealth funds meet in Singapore this week to discuss code of ethics to appease Western fears of political motivation
- Activist Investing: Update: Maryland judge orders HF Costa Brava to cease contact with auditors of Telos Corp
- News Briefs: Chartered Alternative Investment Analyst Association (CAIAA) certifies 550 new members, Hedge fund Regatta`s two days of racing in the Solent, Warburg writes down $215m on MBIA stake, LuxFLAG grants microfinance label to Rural Impulse Fund, LatAm: Bovespa enters bear market
- And Finally. Not exactly what he had in mind: Man accused of faking heart attacks to avoid $22 restaurant bills now faces $10,000 charges
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

The central characteristic of an enduring idea is that both it and its
uses evolve over time. Nothing illustrates this point better than the
Structure Conduct Performance (SCP) model. In its original form, which
helped the US government to frame antitrust policy during the Great
Depression, the model shows the influence of an industry's structure
(such as barriers to entry) on the conduct of producers (pricing, for
example) and the performance of the industry and producers alike. During
the early 1980s, Michael Porter's Competitive Strategy popularized the
model's use as an analytic tool for business. Later in the decade,
McKinsey added a dynamic element, suggesting, for instance, that the
conduct of a corporation can affect the structure of its industry. Many
companies, across regions and sectors, use the seemingly timeless
dynamic SCP framework to develop strategies.
http://e.mckinseyquarterly.com/W0RT018CDF8B232CE4E192B1FDBDF0

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Funnies, Facts, Quotes, etc….

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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.