Main News

 

Theories Abound on Whats and Whys of Cox's Short Order
By: Christopher Faille, Senior Financial Correspondent
Posted: 07/17/2008 1:26:21 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3538.html

 

 U.S. Exchanges May Seek Exemption to SEC `Naked Short Sale' Ban

 http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aWbkDUiKUgp4

 

 

Study: Most firms do not look into suspicious activity
Despite Societe General's rogue-trader scandal and other high-profile cases, most financial firms do not fully investigate all alerts of suspicious activity, according to a new study. The survey by Actimize, a provider of risk-management software, found that more than half of respondents "auto close" the alerts without fully investigating. Wall Street & Technology (16 Jul.)

 

Second half likely difficult for nonfinancial companies
The credit crunch, increasing cost of materials and lower demand abroad are expected to decrease the profits of nonfinancial companies, which have so far been resilient. The companies have cut costs and increased productivity and prices, but the second half of the year is expected to be particularly challenging. BusinessWeek (16 Jul.)

 

Financial crisis limits Fed's ability to curb inflation
Although central bankers are concerned with rising inflation, the Federal Reserve's policy on interest rates may be suspended indefinitely as the global financial crisis continues. Fed Chairman Ben Bernanke surprised market participants by reversing his stance on the Fed's most urgent focus from curbing inflation to stabilizing financial markets. The about-face was apparently prompted by a series of meetings to come up with a rescue plan for Fannie Mae and Freddie Mac. CNBC/Reuters (16 Jul.)

 

What Keeps CFOs Up at Night?
For the first time, the cost of fuel climbs to the top of the list.

 

GLOBAL – The worldwide economic slowdown has impacted fund managers, forcing a revision and polarisation of asset allocations, according to a survey by Merrill Lynch.

 

PennSERS To Interview Alts Managers
Source: Money Management Letter
The Pennsylvania State Employees Retirement Board will discuss real estate and alternatives funds at its July 16 meeting.

 

NETHERLANDS - ABP lost €12bn from its overall value with Pensioenfonds Zorg en Welzijn (PFZW) losing €2.4bn in the first half of 2008 due to poor performing equity markets.

 

 

 

 

Argentina: A Break in the Tension Over Food Exports
July 17, 2008 1256 GMT
An emotional tie-breaker ends the political gridlock in Argentina over highly controversial export taxes on staple foodstuffs. After four months of protests, the farmers have won this round — but is there more drama to come?
http://www.stratfor.com/podcast/argentina_break_tension_over_food_exports

 

Global Macro to Stage Comeback
By: Bill McIntosh, Senior Financial Correspondent
Posted: 07/17/2008 3:41:23 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3540.html

 

By PAUL THARP

Home values in the very rich enclaves like the Hamptons and Greenwich, Conn., are soaring in the double-digits, even as prices of less tony homes in those areas are crashing. Beach mansions of the mogul set in Southampton Village, one of the most...full story

Old Lane SPACs Move to Citigroup Markets
By: Chidem Kurdas, New York Bureau Chief
Posted: 07/17/2008 1:37:14 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3539.html

 

Making Carbon an Asset Class
By: Maggie Shea, Financial Correspondent
Posted: 07/17/2008 11:56:01 AM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=dail&story=dail15138.html

 

Saudis Look Beyond Oil to New Economy in Desert
MEDINA, Saudi Arabia -- Clouds of yellow dust swirled in the air as tractors moved back and forth, leveling a huge, barren piece of land dotted with billboards announcing the city that will rise from the sand here.
(By Faiza Saleh Ambah, The Washington Post)

 

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Yield Curve Corner

 

Bernanke, Frank Form Improbable Alliance Over Subprime Crisis
Bloomberg - USA
By Alison Vekshin July 17 (Bloomberg) -- After Federal Reserve Chairman Ben S. Bernanke detailed to a US House panel yesterday the Fed's new efforts to ...

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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/TRCelidafausto199_G10.jpg

 

Tracking Produce Proves Complex
(By Annys Shin, The Washington Post)

 

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Iranian Situation and Other Man Made Disasters

 

Iran briefs ally Syria on standoff with West
AP via Yahoo! News Thu, 17 Jul 2008 12:28 PM PDT
Iran's foreign minister briefed Syria's president Thursday on the international standoff over his country's nuclear program.

 

Oil extends slide below $130 on demand worries, Iran
Reuters via Yahoo! News Thu, 17 Jul 2008 11:47 AM PDT
Oil prices dropped by $5 on Thursday, adding to a decline of about 12 percent from last week's record on worries over U.S. demand and easing political tensions between Iran and the West over the OPEC producer's nuclear program.

 

Rice to receive briefing on Iran talks in UAE
AFP via Yahoo! News Thu, 17 Jul 2008 12:26 PM PDT
Secretary of State Condoleezza Rice will be briefed on a US-Iran meeting on the nuclear standoff when she stops in the United Arab Emirates on her way to Asia next week, her spokesman said Thursday.

 

Russia charges man with smuggling to Iran
AP via Yahoo! News Thu, 17 Jul 2008 8:16 AM PDT
The founder of a Russian company involved in trade with Iran has been charged with trying to smuggle a metal that can be used for weapons of mass destruction or delivery systems to the Islamic republic, prosecutors said Thursday.

 

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Opalesque’s Corner

 

- Opalesque Exclusive:  Reaching the next asset raising goal - Part Two:  targeting acceleration capital
- Opalesque Exclusive: Melissa Ko`s spinoff Covepoint to launch with four of the six portfolio managers from former BSAM team,  not all Bear execs attracted to JP Morgan
- Fund launches: Ex-Sailfish/Stonegate pros to launch the GCA Credit Opportunities fund by fall, THL Capital prepares two new FoHFs, UBP to launch `hybrid` distressed PE/hedge FoFs, Baring Asset Management to launch MENA fund
- Performance: Cornell University`s Cayuga MBA fund rises over market turmoil
- Funds risk heavy losses from binge investments in North American automotive industry
- Assets: Vermillion AM quadruples assets to $1.8bln in one year
- Indices: Barclay CTA Index up 1.94% in June, 8.88% YTD, HFRI indices: Mid-month update show 8 out of 29 indices are positive, best performer Short Bias index (+8%), worst performer Asia ex-Japan index (-5%), Scotia Capital Canadian HF Index up 5.03% for June, Canadian Hedge Watch: HF Composite Index and sub-indices returns for June all positive
- Counterparty credit risk climbs to highest level since Bear Stearns bailout
- Merrill Lynch Global Fund Manager Survey finds dramatic polarisation in investment allocations, net 53% of asset allocators over weigh  cash, Asset managers target safe healthcare stocks, move away from eurozone equities
- People: Silver Creek hires former GSAM VP Frances Orabona as director of investor relations, Eton Park names Eric Feldstein CFO, Update: Wall Street veteran Mark O'Friel will lead Steel Partners Japan fund, Hedge fund manager Pali hires M&A veteran in expansion, Doug Blagdon named new chief of Citi alternatives marketing, Pension consultant Cardano expands investment management team, SocGen appoints Head of Hedge Fund Relations in Asia Pacific, AIG names former Goldman Sachs vice chair Nora Johnson to board
- Greenwich Associates: Institutional investors name the fixed-income dealers that stepped up in worst moments of global credit crisis, earning `reputational scores`
- Credit Crunch update: US consumer price jump fuels inflation fears, Wells Fargo`s positive results boost battered dollar, Book: `Confessions of a subprime lender`, Merrill Lynch selling Bloomberg shares signals banks turn to selling assets to raise capital, Merrill Lynch decides against sale of BlackRock stake - source, Merrill Lynch set to reveal another loss, If underwriters forced to buy HBOS shares, it will be highest profile offering to fail since October 1987, French bank Natixis to launch Eur3.7bln rights issue following subprime-related writedowns, Investors likely to waive right to buy new Barclays stock, Swiss Re`s shares fall on Fannie, Freddie exposure, Spanish property firm Martinsa Fadesa files for administration, vulture funds might profit from sale of assets
- Outlook: Morgan Stanley sees credit crisis extending into 2009, PIMCO`s El-Erian predicts more `facilitated marriages`, Banks expected to feel pain until 2010, low confidence in European equities, Bloomberg Professional Global Confidence Survey: Stock bear markets seen deepening on credit concern
- Regulatory: Federal crackdown on short selling is causing a scramble on Wall Street, Hedge funds scramble as U.S. SEC cracks down, Cox discuses ruling on shorts (video), Short-sellers caught out by higher costs, Tougher CFTC mandate in new legislation
- Commentaries: Some short-selling funds to gain from SEC curbs, Short selling limit may have unintended consequences, Australian hedge fund players slam U.S. short selling regulation moves, MFA`s Baker says SEC shorting rule sets dangerous precedent
- Legal: FBI looking into IndyMac for possible fraud in connection with risky loans, Update: UBS used `cloak of secrecy` on US tax, Offshore tax evasion costs U.S. $100bln, Senate probe of UBS, LGT indicates, Hundreds of super rich under investigation
- Subprime woes increase draw of human resources to Middle East
- Asia stocks rally on oil and hopes for banks
- Commodities: Oil prices drop after inventory jump in US, CFTC reports HFs unwilling to bet on oil price rises, Energy inventory data (video), Saudi Oil: A crude awakening on supply? Production ramp-up not likely despite what they say, Comment: What is really driving the price of crude oil?, UtiliPoint aims to find out what is driving the price of crude oil with new research, seeks sponsors, Dollar could lose reserve currency status, oil is already being trading in euros, Boutique brokers to cut slack in commodity jobs
- Exchanges: Turquoise abandons plan to open early after `fear mongering` by established exchange
- SWFs: Saudi Arabia approves setting up maiden sovereign wealth fund, SWFs cut exposure to weak dollar, Comment: Don`t pick on sovereign wealth
- Activist News: Update: CSX says TCI and 3G Capital win 4 out of 5 seats, CSX CEO says court to rule on shareholder vote, Pep Boys appoints Barington manager Jim Mitarotonda as chairman of the board
- News Briefs: Tradeweb and Charles River Development launch global solution for post-trade processing of OTC derivatives, S&P`s debt ratings to bring transparency to buy-outs, Knight 2Q profit rises 20% on volatility, profit slowed due to Deephaven`s losses, Hampton housing market plummets, CFA: Buy-side analyst forecasts are more optimistic, less accurate than on the sell-side, Schroders Germany unit gathers EUR1.3bln ($2bln) net inflows in H1, wins five FoHF mandates, Ireland`s richest man loses Eur1bln on banking investment
- ...And finally: True addiction: Dutch cafes use fake cigarette smells to create atmosphere after smoking ban
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

France: A Stand Against the Burqa
July 16, 2008 2143 GMT
In the midst of France's struggles with immigration policies regarding Muslims, the only Muslim member of the French government has voiced support for a court ruling denying citizenship to a woman who wears the burqa.
http://www.stratfor.com/analysis/france_stand_against_burqa

 

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Funnies, Facts, Quotes, etc….

 

Pity the poor people who have to fly coach

http://www.bloomberg.com/apps/news?pid=20601039&sid=aNvAqh8kvSkI

 

anodyne AN-uh-dyn, adjective:

1. Serving to relieve pain; soothing.
2. Not likely to offend; bland; innocuous.
3. A medicine that relieves pain.
4. Anything that calms, comforts, or soothes disturbed feelings.

 

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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.