Main News

 

IndyMac biggest casualty of the subprime mortgage crisis
100 Mortgages - Canterbury,England,UK
... have shut down troubled bank IndyMac Bancorp Inc., means that they have now become the largest casualty of the whole subprime mortgage crisis. ...

 

Bloomberg

IndyMac Bancorp Inc., the second-biggest independent US mortgage company in 2007, was seized by federal regulators after it failed to raise cash amid the worst housing crisis since the Great Depression. The Federal Deposit Insurance Corp. will...full story

 

Freddie Mac's Next Hurdle: Raise Cash
Treasury Department officials were working the telephones yesterday to make sure that Freddie Mac, one of the nation's two troubled mortgage giants, will be able to sell $3 billion of its securities tomorrow in a previously scheduled sale that has now become a crucial test of investor confidence.
(By Jeffrey H. Birnbaum and Steve Mufson, The Washington Post)

 

How can investors reduce risk in their portfolios? David Driscoll briefs us on this important lesson which is always significant but especially crucial in turbulent times.

source: Toron Investment Management

 

BNY lawsuit poses "potential systemic risk"
A multi-billion dollar damages claim issued against the Bank of New York Mellon could pose a systemic risk issue for US and even worldwide financial markets, a banking expert has warned.

 

The ghost in the machine
Growing risk management concerns are fuelling serious new interest in data management strategies and solutions. KRIS DEVASABAI reports

 

Opinions Diverge on Who Calls Valuation Shots When Liquidity is Scarce
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 07/11/2008 3:24:11 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3533.html

 

Snow Says Fannie Mae, Freddie Mac Followed `Hedge Fund' Model
Bloomberg - USA
He said he suggested when in office that ``the business model they were using was really the model of a hedge fund.'' The government-chartered companies, ...

 

WSJ.com - June Is Cruel to Big Names As Prentice, Tosca Get Hit*

 

Carbon trader's shares fall to new low
Jul 10 2008 18:22
The fledgling carbon trading market suffered another blow as shares in EcoSecurities, one of the biggest carbon traders listed on Aim, fell to a record low Read more »

 

Bottom's Up: This Real-Estate Rout May Be Short-Lived This real-estate rout has been more painful than prior ones, but it may be shorter-lived. Indeed, there are early signs of recovery.
http://online.barrons.com/article/SB121581623724947273.html?mod=djemWR

 

The Numbers Speak for ThemselvesHow stock analysis based on statistics and computers sabotaged itself.
http://online.barrons.com/article/SB121582912353648143.html?mod=djemWR

 

Lessons Learned From 1987

 source: Toron Investment Management

John Welch reviews the market crash of 1987, exploring the similarities and differences with the turbulent markets of early 2008 to reveal what investors should watch for and what we can learn.

 

Aite Analyzes, Compares Quant Platforms
By: Emma Trincal, Senior Financial Correspondent
Posted: 07/11/2008 3:22:00 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3532.html

 

Man Group is a Bright Light in Hard Times
Hedge Fund Net - New York,NY,USA
by Paula Schaap, Reporter , July 10, 2008 UK-based hedge fund firm Man Group is going strong in a year that has hit the asset class hard. ...
See all stories on this topic

 

How Do Young Fund Managers Perform During Bubbles? by Markham Lee

 

Hedge Funds Make the Move into the Indexing Marketplace by Index Universe

 

Mutual Funds and ETF Growth by Aaron Katsman

 

Federal Reserve, Tend to Your Own House by David Merkel

 

World Bank tests water with Malawi drought risk trade
The World Bank will close a weather derivatives trade by October 1, a move intended to hedge the Malawian government against the financial risk of severe or catastrophic drought.

 

By KAJA WHITEHOUSE

Vanity Fair's recent exposé on the collapse of Bear Stearns seems to be having more of an impact in Englewood Cliffs, NJ, where business news station CNBC is located, than on Wall Street. The article by Bryan Burrough, author of "Barbarians...full story

 

The Latest from pomtalk

Rating Agencies Behaving Badly

Posted: 10 Jul 2008 08:50 AM CDT

 

Sandelman restructures hedge fund: report
MarketWatch - USA
For the remaining 78%, investors will have the choice to place their investment in a new Sandelman hedge fund for a year or have the money placed in a ...

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Yield Curve Corner

 

Bernanke faces a tough time before Congress
International Herald Tribune - France
By Emily Kaiser Reuters WASHINGTON: When the Ben Bernanke, the US Federal Reserve chairman, takes the stand for his twice-yearly congressional testimony ...

 

Will Bernanke Doom the SEC?
Demarche by Fed Called 'Major Move'
BY JULIE SATOW - Staff Reporter of the Sun
As the Federal Reserve chairman pushes ahead with his effort to expand the Fed's oversight of investment banks, traditionally the jurisdiction of the Securities and Exchange Commission, some officials said the move would severely limit the securities agency's influence on Wall Street and could even lead to its dismantling.

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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:

 

Bermuda issues tropical storm warning
The Associated Press -
HAMILTON, Bermuda (AP) — Bermuda is preparing for heavy rains and wind this weekend as Hurricane Bertha sputtered across the Atlantic. ...

 

We're entering the 2nd of back-to-back conducive oceanographic/atmospheric phases across the Atlantic Basin. The previous phase led to the formation of Hurricane Bertha, and would have triggered more activity if it wasn't for high shear across many of the sub-basins (the proverbial cork on the shaken champagne bottle). Storms can be born anywhere under such phases, but our research points toward 2 main areas for you to keep an eye on over the next 6-8 days...

Full Story...

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Iranian Situation and Other Man Made Disasters

 

Iran, Russia's Gazprom sign energy cooperation deal
AFP via Yahoo! News Sun, 13 Jul 2008 10:53 AM PDT
Iran and Gazprom Sunday signed an agreement for the Russian energy giant to help Tehran develop its oil and gas fields, days after Total dropped out of a multi-billion-dollar gas deal.

 

Iran says discovers billion barrel oil field
AFP via Yahoo! News Sun, 13 Jul 2008 6:48 AM PDT
Iran on Sunday said it has discovered a new oil field in the hydrocarbon-rich province of Khuzestan with more than one billion barrels of crude in place.

 

Iran would allow US diplomatic office
AP via Yahoo! News Sun, 13 Jul 2008 6:13 AM PDT
Iranian state TV is quoting President Mahmoud Ahmadinejad as saying Iran would welcome the idea of setting up a U.S. diplomatic office in Tehran.

 

Dissident?s Tale of Epic Escape From Iran Grip
New York Times Sat, 12 Jul 2008 11:57 AM PDT
After nearly eight years in Iranian prisons, Ahmad Batebi, one of the country?s best-known dissidents, provided an unusual window to Iran under its ruling clerics.

 

Iran hangs four murderers in public: report
AFP via Yahoo! News Sat, 12 Jul 2008 4:28 AM PDT
Iran hanged four murderers in public in the southern city of Dashtestan, the latest in a growing number of executions in the Islamic republic, a press report said on Saturday.

 

Iran, EU: Solana, Jalili To Meet In Geneva
July 11, 2008 1529 GMT
EU foreign policy chief Javier Solana will meet with lead Iranian nuclear negotiator Saeed Jalili...
http://www.stratfor.com/sitrep/iran_eu_solana_jalili_meet_geneva

 

 

OPEC leader: Oil-price hike "unlimited" if Iran attacked
OPEC's general secretary said any oil cutoff caused by warfare involving Iran could not be replaced by other oil producers. The result would be an "unlimited" rise in oil prices, because Iran is the second-largest OPEC producer after Saudi Arabia. The New York Times (11 Jul.)

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Opalesque’s Corner

 

- Opalesque Exclusive:  Emory (24% net average annualized returns, 13% YTD) say their `dynamic option arbitrage` model excels in downturns
- Fund launches: Event-driven firm Constellation launches special situations hedge fund
- Performance: Opalesque Exclusive: Natsource Aeolus II Offshore Fund returns 11.32% (est) in June, 27.22% (est) YTD, Opalesque Exclusive: London-based Mulvaney`s global program returns 8.51% in June, 50.78% YTD, Kambo of Numis says Man Group`s funds gain `phenomenal` (Video), June is cruel to two high profile funds, Prentice down 46% YTD, Tosca Fund down almost 30%, Hedge funds record losses but still beat stock indexes, those who bet against financials did best
- Assets: Charlemagne Capital warns on performance fees as AuM decline, London start-up Fund Analytics touts European FoF
- Indices: Hennessee Hedge Fund Index declined -0.64% in June
- London hedge fund platform Harbour Capital Partners wins FSA approval
- Strategies: Opalesque Exclusive: Swiss firm: distressed, macro and merger arb top strategies for the remainder of the year, Key Asset management CEO Jones says it`s too early to buy distressed credit (Video), Some London HFs use multiyear incentive plans to encourage long-term thinking, good selling point, Short-selling costs double as more investors are drawn to strategy, Blacksquare ups macro exposure in Caxton-only FoF, Hedge funds moving into indexing marketplace
- Capital Management merges two credit hedge funds
- M&A, stakes: Apax co-founder buys into Millennium Global, Merger planned for Carador and Abingdon Investment
- Trends: Financial planners say alternative investments continue to infiltrate retail, to grow even more in 2008, Fitch predicts end to boutique revolution
- Update: United Capital denied assertions made in three separate arbitration claims over the past year, Devaney said majority of investors had stood by him during difficult time
- Comment: Can hedge funds outlive their star managers? On running money and running companies
- Credit Crunch Update: Freddie and Fannie in turmoil, U.S. weighs takeover of two mortgage giants, Lehman shares drop, Pimco says still trading, PIMCO`s Gross denies Lehman rumors (video), Pacific Investment and SAC Capital still in business with Lehman, Lehman`s CEO should buy 1m shares, Jim Cramer says, Fed to exempt JPMorgan from certain regulations to ease Bear asset transfer, Bernanke demands `new tools` for another Bear-like collapse, Secretary Paulson tells financial institutions not to expect bail out, US mortgage sector eyes covered bonds, Risk aversion hits convertibles, Another sign of the credit crunch: Desperate wives turn to divorce experts
- People: Hedge fund veteran Margaret M. Towle, Ph.D. joins multi family office, Próxima Alfa appoints Igor Ojereliev to launch emerging markets fund, Boeing hires hedge fund team, Vincent Duhamel exits Goldman Sachs AM, Fortis chief Jean-Paul Votron poised to quit over purchase of ABN Amro
- Opalesque Exclusive: Swiss alternative fund assets up 1.5% in May - Swiss Fund Data AG, Switzerland's regulators plan to raise capital requirements above the already high levels maintained
- Commodities: CFTC says speculators not to blame for record oil prices, Congressman Collin Peterson hits pension funds in commodities
- Exchanges: Lehman Brothers to use Turquoise
- Operations: White paper: Hedge funds: Why comply? - A practical guide to developing a culture of compliance, Survey: 2007 asset management operations and compensation, Offshore funds: A Pathway to growth - A practical guide to operational imperatives for hedge fund managers
- Service Providers: Carne launches first specific fund valuation `Best Practice` consultancy product in European market, Hedgecasa combines with ARC to form hedge fund services platform
- Activist News: Syms CEO defends real estate holdings, says to stay public, Silver Point said to take over Young Broadcasting
- News Briefs: Van Eck to launch Pan-African ETF, CalPERS picks search firm to fill CIO position, Icap struggles while Footsie slips closer to bear territory, Carbon ratings pave way for new asset class, Citi to sell German retail banking unit, Goldman Investment underscores twist on China research
- ...And finally: Big Opalesque Weekend Poll to honor `Least Competent Person`: The bank robber or the dentist?
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

Hedge fund managers throw weight behind Obama
Boston Globe Fri, 11 Jul 2008 11:56 PM PDT
Hedge fund managers are famous for betting against conventional wisdom, and this year many are doing just that by backing Democrat Barack Obama's White House bid and defying Wall Street's usual embrace of Republicans.

 

The King of Green Investing | by Richard Shaffer Vinod
Khosla is pouring his own millions into science
experiments to counter global warming -- and to prove
he's the smartest guy in the Valley.
http://trax.fastcompany.com/k/w/mailman/fasttake/20080710/green_angel

 

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Funnies, Facts, Quotes, etc….

 

antediluvian n-tih-duh-LOO-vee-uhn, adjective:

1. Of or relating to the period before the Biblical flood.
2. Antiquated; from or belonging to a much earlier time.
3. One who lived before the Biblical flood.
4. A very old (or old-fashioned) person.

 

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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.