Main News

 

The Fannie/Freddie debacle is just the latest chapter. As the US Congress and various other official bodies around the globe debate what types of reform are needed, Hugo Dixon offers a blueprint.

 

The Securities Industry and Financial Markets Association (SIFMA), after reviewing the Securities and Exchange Commission’s (SEC) amended order on its short-selling emergency order, called these steps “essential.”

Full Story...

Analysts expect second half of year to be busier for M&A
The pace of mergers and acquisitions in the first half of 2008 was slow, but a recent slew of large deals may be the beginning of a busier second half. "I think you'll see an increase in M&A as the year goes forward, particularly as the financial market settles down," says Mike Burnick of Weiss Capital Management. "The reality is there's a lot of good value out there." CNBC (21 Jul.)

 

Hedge funds' losses less important than outperformance of other ...
HedgeWeek - London,UK
The HFN Hedge Fund Aggregate Average was down by 0.64 per cent in June and 0.06 per cent for the first six months of 2008, according to provisional figures, ...

 

Tue, 22 Jul 2008, 06:01

Hedgeweek

The Risk and Asset Management research centre at French business school Edhec notes that June saw a very sharp decline in the stock markets with the S&P 500 plunging 8.4 per cent, its worst monthly performance since September 2002, and reaching to its lowest level since August 2006.

 

Funds of Funds Look to Macro For Gains: Poll
By: Reuters
Posted: 07/22/2008 8:58:39 AM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3544.html

 

Dow Jones and Brookfield Asset Management have created a new infrastructure benchmark without utility stocks but FTSE's Jerry Moskowitz says utilities are a vital component.

 

Despite the worst first-half hedge fund performance since records began and a 75% reduction in overall net investment, institutional investors are not only holding firm, but are planning to increase their allocations.

 

Moody's Investors Service gave its seal of approval to liability-driven investment strategies, but raised concerns about counterparty risk when pension funds use synthetics to extend the duration of their bond portfolios.

 

Execs Lose Faith In Sarbox
Company executives are taking an increasingly dim view of some effects of Sarbanes-Oxley.Read more

CANADA – The CAN$39bn (US$38.8bn) Public Sector Pensions Investment Board (PSP Investments) posted a $450m write down as a result of collateralised debt obligations (CDOs), according to its annual report.

 

India-Focused Hedge Fund Down 22%
FINalternatives - New York,NY,USA
And he predicts better things for the fund in the future, despite difficulties in the near term. “There’sa lot more pain to come in India’s hedge fund ...

AUSTRALIA – Super funds must diversify away from equities and towards other assets to protect themselves against ‘shocks’ brought on by a lack of diversification, a report from Russell has recommended.

 

Speculation a Symptom of Higher Commodity Prices: Conference Board
By: Jacob Bunge, Financial Correspondent
Posted: 07/22/2008 3:21:30 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1352.html

 

Venezuela: A Crisis in Caracas?
July 21, 2008 2101 GMT
An alleged assassination attempt targeting a prominent opposition figure could indicate growing problems for Venezuelan President Hugo Chavez.
http://www.stratfor.com/analysis/venezuela_crisis_caracas

 

AbCap Plunges to 33 Million Euro Loss
By: Bill McIntosh, Senior Financial Correspondent
Posted: 07/22/2008 2:09:49 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15147.html

 

Man AHL Strategy Could Double in Size, Wong Says
By: Reuters
Posted: 07/22/2008 12:49:46 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15146.html

 

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Yield Curve Corner

 

Bernanke towers as biggest Fed market mover: study
Reuters - USA
By Alister Bull WASHINGTON (Reuters) - The financial market impact of Federal Reserve Chairman Ben Bernanke's remarks has soared since the start of 2007 as ...

 

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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/TRCdollyfaustogene204_G10.jpg

 

WSI increases 2008 Atlantic hurricane forecast

Reuters - 49 minutes ago

NEW YORK (Reuters) - WSI Corp increased its forecast for the number of named storms and hurricanes for the 2008 hurricane season due to warming in the Atlantic basin, the private forecaster said on Tuesday.

 

Climate documentary 'broke rules' *
A controversial Channel 4 film on global warming broke Ofcom rules on impartiality and fairness, the regulator says.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7517509.stm

 

Dolly Dings Energy ETFs
Rob Wherry
As Tropical Storm Dolly turns south, so do natural resources funds.
  http://www.smartmoney.com/t.cfm?pId=7&mID=645&mDt=07/22/2008&ui=1157312&ctu=%2Fetf%2Doutlook%2Findex%2Ecfm%3Fstory%3D20080722%2Ddaily%2Detf%2Dwrap%2Dup

 

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Iranian Situation and Other Man Made Disasters

 

 

US and Iran: A One-Sided Negotiation
Time Magazine Mon, 21 Jul 2008 9:50 PM PDT
Four years of incremental climbdowns by the U.S. have produced no progress on Iran's nuclear program. Secretary of State Rice thinks this time may be different

 

Geopolitical Diary: The Solid Footing of U.S.-Iranian Negotiations
July 21, 2008 2336 GMT
Despite a recent hardening in U.S. negotiating rhetoric, and even though political jockeying and military posturing will increase in the coming weeks, U.S.-Iranian negotiations are on solid footing.
http://www.stratfor.com/geopolitical_diary/geopolitical_diary_solid_footing_u_s_iranian_negotiations

 

Iran, Pakistan: Sunni-Shia Committee To Be Formed
July 22, 2008 1500 GMT
Pakistan's acting Interior Minister Rehman Malik and Iran's acting Interior Minister Syed Mehdi...
http://www.stratfor.com/sitrep/iran_pakistan_sunni_shia_committee_be_formed

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Opalesque’s Corner

 

- Editor's Note
- Opalesque Exclusive: UCITS III, the European travelling funds - part 1 -  Alternative managers show interest as `highest level of regulation` can open wider markets - i.e. pensions
- Opalesque Exclusive: Hedge fund redemptions - the legalities surrounding freezing assets: Can a manager use the fund to finance defense in any litigation?, When hedge funds fail potential pitfalls loom if Cayman incorporated
- Launches: VCM plans new seeding structure for funds, Resolution Asset Management launches regional 130/30 funds
- Performance: FRM Credit Alpha returns +3% in June, Neitsch says reduced credit availability leads to increased default activity the trend upwards is gathering momentum, Venus Capital India hedge fund down 22% YTD, Abbey flagship rides commodity returns with 21.4% YTD, 2007 hedge-fund stars still hit home runs, real challenge will come later
- Closure: Opalesque Exclusive: Dutch hedge fund Mercurius in voluntary liquidation, investors many not recoup all
- Assets: Gottex`s AUM up 0.2% at $15.6bln, demonstrating stability in volatile markets, Update: Hedge funds shop around for financing, reluctant to rely on prime brokers
- Strategies: Investors quit emerging markets for developed safety
- Research:  Greenwich report shows U.S. hedge fund trade volume in fixed income hit the wall in 2007-2008, Lehman holds top FI spot even while losing HF trading share, Celent study shows alpha/beta bifurcation and institutional investors` growing appetite for hedge funds is causing a significant shift in the structural and operational underpinnings of the industry, Watson Wyatt report: investment managers now dominate the `pension fund food chain`, Prince & Associates study: Advisers blast hedge funds for poor communications, 95.7% say funds just don`t understand their business needs, `hedge funds sales efforts ineffective`
- M&A / Stakes: Evercore acquires 50% stake in Pan-Asset Capital, Deerfield Capital Corp. acquires Robeco CDO management contract, first in CDO contract roll-up strategy
- Manager profile:  Santander`s Moore says credit crunch great threat, but low valuations providing glimmer of hope
- People: Ramin Habibi joins board of Danfonds Frontier Markets Fund as an independent director, GLG Partners appoints former PIMCO PM Jamil Baz as Chief Investment Strategist, Former COO of TCW Sonneborn to join KKR as firm broadens asset management platform, Citigroup shakeup sees ex-banking head Klein leaving, Sadis & Goldberg adds David Riley as partner in Financial Services Group, EIP welcomes Howard Ng back, Bank Sarasin believed to have hired up to 20 private client advisors from Credit Suisse in Basel, Troika Dialog hires from Citigroup and Renaissance
- Credit Crunch Update: Ackman`s flaky Fannie short: Fannie and Freddie stocks are back to July 10 levels, Bank of China may hold huge US debt issued by Fannie and Freddie, The future of Fannie and Freddie, Investor SAC wants Citi to break up, Bank of America profit less than expected but tops views, UK lender Paragon in takeover talks with Blackstone, Outlook: Henderson braces for new stock market lows, Rating agency software in spotlight
- On Short Selling: Former SEC head Pitt wants broader short-selling rules, Hedge funds may have made 1bln GBP shorting HBOS, Firms see few snags with short limits, new rules cause decrease supply of some stocks, Study find short selling jumps before CEO share sales, Comment:  Economies need a balance of boosters and skeptics to be healthy, Shorting ban won`t hurt too much, say money managers, Comment: Dear Abby Aunt Greg . . . Part I
- Regulatory: MFA and CPIC sent letter to Cox urging him to not extend emergency order on short-selling beyond July 29, U.S. Treasury urges hedge funds to adopt new guidance, China tightens fund distribution standards
- Legal: Bank analyst Bove sued for defamation by BankAtlantic, Update: Ex-SocGen trader Kerviel changes legal team
- Euromoney names Citi best global bank for cash management, investor services and emerging market debt
- Europe: Spain: Foreign managers kept waiting as hedge fund regime clicks into gear, Icelandic CDS costs surge again
- Asia: Survey: China and Taiwan are fund managers` favourites
- Niche Investing: Rare wines prove resilient investment in downturn as Bonhyams auction house reports highest ever sales records
- Environmental Investing: CCX to work with coordinator working to validate and verify greenhouse gas emissions, GCL Silicon filing shows plans for $863m solar power US IPO, MENA region in quandary as forced to choose between crops or preserving scant water supply
- Commodities: China`s state reserve authorities purchased 26 million tons of wheat for stockpiles, Coal price surge coincides with hedge funds` growing interest, Comment: Oil investors debate best exposure
- Exchanges: Exchanges need to become tech vendors - Cisco Systems, BNP to launch `hybrid` clearing service aimed at dark pools, CME Group OTC clearing capabilities to the interest rate swap market to launch September 2008
- Activist Investing: Yahoo and Icahn settle, Microsoft deal seen adrift, Hedge funds may seek buyout of Napster
- News Briefs: NY governor sees Wall Street bonus cuts, Apple addresses hedge fund worries: Job `has no plans to leave the company`, London fears losing its edge in finance, US fears put on the backburner amid credit crisis, Private jets grounded for Merrill`s top brass, DTCC and Markit to form OTC derivatives partnership, Liechtenstein tax haven probe targets 300 rich Britons, Angry investors temporarily shut Pakistan`s Karachi Exchange
- ...And finally: World`s Santas meet in Denmark for 51st international convention to argue over `true` Christmas calendar, plan slimming exercises
- 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….

 

gamine gam-EEN; GAM-een, noun:

1. A girl who wanders about the streets; an urchin.
2. A playfully mischievous girl or young woman.

 

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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.