Archive: 07/21/2008

Main News
 
Too Big to Fail?
New York Times - United States
RESCUE Christopher Cox, the SEC chairman, left, and Ben Bernanke, the Fed chairman, center, hear Treasury Secretary Henry Paulson tell senators he wants ...
 
BlackRock reaps benefits of risk stance
Jul 17 2008 20:15
BlackRock, one of the biggest US asset managers, has seen its long-standing emphasis on risk management pay off, with $24bn in net inflows and better-than-expected profits for its second quarter Read more »
 
Ackermann says credit crisis end in sight
Jul 17 2008 19:49
Josef Ackermann, Deutsche Bank's chief executive, said the credit crunch was at 'the beginning of the end' as banks and regulators have taken action to deal with the crisis and many businesses were slowly returning to normal Read more »
 
Banks expected to feel pain until 2010
Jul 16 2008 23:11
Traders are betting that the credit crunch will still be hurting banks at the end of 2010 with financial institutions expected to be scrambling for cash to shore up their end-of-year balance sheets Read more »
 
johnny@optima.com has sent you this article link:
http://online.wsj.com/article/SB121632843667963227.html?mod=2_1581_topbox
 
Blackstone Risks Hedge Funds' Return as LBO Lending Evaporates
Bloomberg - USA
So the New York-based company turned to GSO Capital Partners LP, the hedge-fund manager it acquired in March, to pull off the largest US leveraged buyout ...
 
Fund managers pessimistic about European equities
Fund managers remain pessimistic about the outlook for European equities amid gloomy data on inflation and growth, a survey by Merrill Lynch has shown.  (Financial Times)
http://mail2.efnmail.co.uk/r/381452/MTk4MTI1OjE4MDA2/
 
FT Alphaville
From the SEC RELEASE NO. 58166 / July 15, 2008. False rumors can lead to a loss of confidence in our markets. Such loss of confidence can lead to panic ...
ftalphaville.ft.com/blog/?s=citi - 72k - Cached - Similar pages
 
La Grande Bouffe
By Patrick McConnell
July 7, 2008 5 PM
The French are ! past masters of the art of Farce and the French Banking Commission are determined to uphold this great trad...
 
RUN ON THE BANK
By GREGORY BRESIGER
The number of Americans filing for bankruptcy is rising sharply, proving that recent legal reforms are not working, according to a recent report. "The bankruptcy rates are back on the wrong track despite a conscious legislative effort," according...full story
 
With Fannie, Freddie, What's Good for Bondholders is Good for HFs
By: Emma Trincal, Senior Financial Correspondent
Posted: 07/18/2008 5:45:57 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3541.html
 
Hedge Funds Attracting Less Capital
Wall Street Journal - USA
By KEVIN KINGSBURY Hedge-fund inflows tumbled 79% in the second quarter from a year earlier, hitting a 2 1/2-year low as investors shied away from putting ...
 
Hedge-Fund Soldier Leads Double Life
ABC News Fri, 18 Jul 2008 3:22 PM PDT
Sgt. Frank Lugo traded Wall Street for Sadr City, Iraq
 
Bringing Down Bear Stearns: Politics & Power: vanityfair.com
The fall of Bear Stearns wasn’t just another financial collapse. .... In its 25-year modern history, Vanity Fair has photographed some of the world’s most ...
www.vanityfair.com/politics/features/2008/08/bear_stearns200808?currentPage=1 -
 
OFFICIALS MISSED INDYMAC RED FLAGS
By TERI BUHL
The main regulator responsible for overseeing IndyMac Bank missed at least three chances over the past two years to reel in the failed lender, according to a report. Amid the finger pointing in Washington over who triggered the third-largest...full story
THE NUMBERS GUY, By Carl Bialik
Which states have been hardest hit by the mortgage crisis? It depends on who is doing the counting, and how. Data providers of foreclosure numbers use different methods and have different goals, making it difficult for legislators to get a grip on the problem.
http://online.wsj.com/articles/numbers_guy?mod=djemtct
 
New York Anomaly Lifts Housing Starts
New York Times - 1 hour ago
By MICHAEL M. GRYNBAUM The months-long downturn in residential construction apparently paused in June, as permits and groundbreakings for new homes unexpectedly rose, according to a government report released Thursday.
 
CDO Analyst
FINalternatives - New York,NY,USA
Description: Devon Capital is an established London-based CDO advisory firm which specialises in analysing and restructuring CDOs and structured credit for ...
 
Traders head for hedge funds
Times Online - UK
The smart ones, it seems, are going to hedge funds. GLG, Europe’s largest hedge fund, recently poached Goldman Sachs partner and top trader Driss Ben-Brahim ...
 
A look behind the hedge fund curtain
Hedge World Fri, 18 Jul 2008 5:54 PM PDT
I was astonished in recent days to learn that David Einhorn and his Canadian counsel, the distinguished R. Paul Steep, have been tripped up by what may be the most basic, and the best-known, principle of evidence in the common-law world: the exclusion of hearsay.
 
Perella Weinberg Hedge Fund Gains 24% on Distressed Investments
Bloomberg.com Thu, 17 Jul 2008 9:41 PM PDT
July 18 (Bloomberg) -- Perella Weinberg Partners' Xerion hedge fund rose 24 percent this year, helped by wagers that the value of investment-grade bonds of financial-services firms would fall, according to a letter sent to investors.
 
Hedge Funds Surpass Mutual Funds In Equity Trading Volume<http://www.hedgefund-index.com/newstoday.asp>
Source: CNNMoney.com
An equity investors study by Greenwich Associates showed trading volume generated by hedge funds surpassed mutual funds last year and now ranks second only to traditional asset-management shops. More...<http://www.hedgefund-index.com/newstoday.asp>
 
Twelve month view on metals rankings
Thursday , 17 Jul 2008
Aluminium seen as the likely star performer in comprehensive metals review.
 
China growth cooled to 10.4% in H1
Business Standard - Mumbai,Maharashtra,India
The US faces "significant downside risks to the outlook for growth," Federal Reserve Chairman Ben S. Bernanke said July 15. The finance committee of China's ...
 
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Yield Curve Corner
 
US Markets: Is it Time to Throw Caution to the Wind?
Seeking Alpha - New York,NY,USA
Fed Chairman Ben Bernanke was in the hot seat on Tuesday, delivering his semi-annual monetary policy testimony before the Senate Banking Committee in ...
 
Bizarre five days that few will forget
Financial Times - London,England,UK
Hank Paulson, the Treasury Secretary, and Christopher Cox, the chairman of the Securities and Exchange Commission, appeared with Ben Bernanke, ...
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Natural Disaster Corner
 
http://www.noaa.gov/
http://www.sec.noaa.gov/Data/index.html
http://tsunami.gov/
http://earthquake.usgs.gov/eqcenter/
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/FSMus199_G12.jpg
 
Tropical storms going strong worldwide
United Press International - USA
MIAMI, July 20 (UPI) -- Portions of Mexico, the United States and Iceland were badgered by tropical storms Sunday, the National Hurricane Center said. ...
See all stories on this topic
 
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Iranian Situation and Other Man Made Disasters
http://www.globalincidentmap.com/home.php
http://icasualties.org/oif/
 
U.S. is present, but Iran nuclear talks end in stalemate
International Herald Tribune Sun, 20 Jul 2008 3:03 AM PDT
International talks on Iran's nuclear ambitions included one of the most important diplomatic encounters between Iran and the United States since 1979, but they ended in deadlock.
 
'Iran is friends with Israeli people': Ahmadinejad aide
AFP via Yahoo! News Sun, 20 Jul 2008 0:31 AM PDT
Iran is "friends with the Israeli people", a deputy of President Mahmoud Ahmadinejad said, in stark contrast to Tehran's usual verbal assaults against the Jewish state, local media reported on Sunday.
 
U.S. Talks With Iran Exemplify Bush's New Approaches
In a Matter of Days, Administration Announces Change of Tactics Toward Onetime 'Axis of Evil'
(By Dan Eggen, The Washington Post)
 
Iran describes nuke talks as 'constructive'
CNN.com Sat, 19 Jul 2008 11:29 AM PDT
Iran's top nuclear negotiator called talks Saturday with European Union foreign policy chief Javier Solana "constructive," but didn't say whether Iran would accept a short-term proposal to jump-start negotiations on the nuclear issue.
 
U.S.: French Firm Fined Over Sales To Iran
July 18, 2008 1414 GMT
French firm Cryostar was placed on two years probation by a U.S. judge July 18 and ordered to pay...
http://www.stratfor.com/sitrep/u_s_french_firm_fined_over_sales_iran
 
Iran's Osanloo still jailed
http://www.labor.net.au/news/1215731766_23730.html
 
MULLAHS V. WORKERS
IRAN'S BRUTAL LABOR CRACKDOWN
By AMIR TAHERI
July 17, 2008 - A YEAR ago last Saturday, Ali Khamenei ordered the abduction of trade-union leader Mansour Osanloo. In so doing, Iran's top ruling mullah hoped to kill in infancy the independent trade-union...more >
 
WHAT 'BOMB IRAN' REALLY TAKES
By RALPH PETERS
July 17, 2008 - MY greatest worry on Iran's nuclear threat to civilization isn't the military option. It's trying that option on the cheap. If there's any way to block Tehran's pursuit of...
 
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Opalesque’s Corner
 
- Editor's Note
- Fund launches: Update: Blue Oar L/S equity hedge fund to launch in Q4
- Performance: BlackRock reports second quarter diluted EPS of $2.05, AUM rise to $1.428tln, Perella Weinberg hedge fund gains 24% on distressed investments
- Indices: EDHEC Alternative Indices: 8 out of 13 strategies posted negative returns, short-selling fared best (8%), E.M. worst (-2.58%)
- Blackstone risks hedge fund unit`s returns as LBO lending evaporates, Old Lane SPACs move to Citigroup markets
- Aberdeen assets rise 6% amid market turmoil, speculations of consolidation, Aberdeen to cut jobs as it seeks GBP57m in annualised cost savings, Santander to sell asset management unit for up to 3bln Euros
- Opalesque Exclusive: Five critical challenges for hedge funds taking aim at the institutional market - SEI white paper
- Strategies: Global macro to stage comeback, researcher says AUM could reach 30% of HF assets
- Fund manager Rushbrook accuses hedge funds of rights exploitation
- Opalesque Exclusive:  As hedge funds pass mutual funds for US equity trading volume, brokerage firms fine tune their offerings to entice the industry that now represents 30% of their equity commissions
- Credit Crunch update: Fannie, Freddie still have fans: Asia and Europe`s investors provide most bids for new debt issue, Morgan Creek`s Yusko and Passport Capital`s Burbank discuss Fannie & Freddie (video), JPMorgan beats forecasts, warns on mortgages, Merrill posts $4.9bln loss, Lehman bidders thin on the ground, analysts say, Barclays investors buy 19% of shares on sale in offer, Little comfort in SIV Portfolio (formerly Cheyne Finance) asset auction, Economists poll: Credit crunch to sting into next year, Volatility likely to get worse in coming weeks`, warns F&C
- People: Opalesque Exclusive: Triple A Partners hire Joanne Murphy, Hedge fund executive offered executive director/CIO position at $163.5bln Florida State Board of Administration, Co-head of Citigroup alternatives unit departs, Barclays Wealth hires alternative specialist from Deutsche, Lord Rothschild bolsters RIT with appointment of Ian Wace and Sandra Robertson as non-executive directors
- Regulatory: SEC to answer short-selling questions soon, SEC responds to pressure, to grant some leniency to certain short sellers, Regulators investigate Wachovia HQ (video), MFA calls upon US Congress and the president to address manipulation in futures markets, Citadel urges SEC to limit NYSE, Nasdaq options fees, Ackermann pushes for risk-monitoring forum
- Commentaries: Are hedge funds root of all evil or convenient scapegoats? Wall streeters urge regulators to apply heat to managers, Theories abound on whats and whys of Cox`s short order, Short-selling vital to the market, hedge fund experts say, spreading false information is the culprit, New shorting rules get mixed reviews, US short sale rule may both help, hurt options trade, Shorting `makes billions` for fund managers and prime brokerage firms, Confusion as to how the pre-borrow requirement will work
- Legal: Kim brothers sentenced to prison in KL Group hedge fund fraud, Update: Now defrauded Bayou investors sue Goldman for failing to detect Mr. Israel`s fraud, Courts rule Stronach didn`t oppress HF Greenlight
- UBS Update: UBS probe `targets tax evaders, not secrecy`, IRS seeks Swiss help in UBS probe, UBS to stop offshore banking for U.S. residents
- Europe: IMA welcomes proposals for improved UCITS IV legislation, Banks fight EU plan for credit derivatives reserves, Swiss Market Index hits three-year low
- Middle East: Barclays Global Investors opens Middle East office, Swiss private bank BSI gets regulatory nod for Bahrain foray
- Asia: Highland opens Singapore office, boosts sales team, Interview: Asia investment outlook by AMP Capital`s Shane Oliver
- EM: IMF warns emerging markets on inflation, Interview - Manuel Alejandro Dopazo, Fincere,  strongly expects `emerging markets to continue to build on the growth they have experienced in the past few years`
- Commodities: Castlestone Management`s Aliquot Precious Metals fund to be offered by Friends Provident International through its Mirror Fund Range, Oil price fall eases inflation pressures, CBOE to launch commodity volatility indices, Donald Trump on economy, oil and real estate (video)
- Dallas Fed: Why are exchange rates so difficult to predict?
- Sophis survey finds securities firms spend more on risk solutions
- Activist News: Activists in Japan switch to working `behind the scenes`, Cleveland-Cliffs` Alpha purchase opposed by Harbinger
- News Briefs: Christie`s and Sotheby`s register $7bn in sales amid art boom, Citadel founder Kenneth Griffin raised funds for both Obama and McCain, prefers McCain, Retail structured products hit GBP3.7m as traditional mutual funds and trackers struggle - Blue Sky A.M.
- ...And finally:  UK airport seeks traffic controller, application available in `large type, braille or audio format`
- 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….
 
insensate in-SEN-sayt; -sit, adjective:
1. Lacking sensation or awareness; inanimate.
2. Lacking human feeling or sensitivity; brutal; cruel.
3. Lacking sense; stupid; foolish.
 
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Conference, Courses, Books, Papers
 
Great Research Sites:
http://www.highbeam.com/
http://www.dealbreaker.com/
http://seekingalpha.com/
www.riskmterics.com
http://www.allaboutalpha.com/blog/
 
Merrill Lynch research Link to full report including important disclosures see example
http://rsch1.ml.com/9093/24013/ds/78763025.PDF
 
John Mauldin’s Weekly Analysis
www.frontlinethoughts.com
 
James Altucher’s Website:
www.stockpickr.com
 
Other useful sites:
www.flyonthewall.com
www.gloriamundi.com
www.wilmott.com
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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
http://www.cogenthedge.com/home/inv_strategy.asp
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Regulatory Info
 
Commodity Futures Trading Commission (CFTC)
Division of Enforcement: +1 866-FON-CFTC
http://www.cftc.gov/enf/enfform.htm
http://www.cftc.gov/enf/enfform.htm
Securities and Exchange Commission (SEC)
e-mail: enforcement@sec.gov
http://www.sec.gov/complaint.shtml
http://www.sec.gov/complaint.shtml
Autorité des marchés financiers (AMF)
Ombudsman's office: +33 (0)1 5345-6464
French: http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=fr&Id_Tab=0
English: http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
Financial Services Authority (FSA)
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Financial Ombudsman Service: 0845 080 1800, outside the UK: +44 (0)20 7964 1000
complaint.info@financial-ombudsman.org.uk
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Hong Kong Securities and Futures Commission (SFC)
http://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
Investor Hotline: 852-2840-9333
investor.info@sfc.hkhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
 
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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.
 


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