Main News

 

Citi facing even bigger write-offs than Merrill

Bank could be facing $7 billion in additional write-downs if it is forced to value its mortgage-related debt at the heavily discounted price Merrill Lynch accepted for its portfolio. 

 

Credit crisis far from over, IMF warns
Citing "fragile" global financial markets and softening European home prices, the International Monetary Fund warned that further reductions in U.S. credit growth are possible. The July update to the fund's Global Financial Stability Report reiterated the IMF's contention that losses this cycle could reach as much as $945 billion as the subprime-mortgage crisis continues to reverberate. Financial Times (28 Jul.)

 

Hedge Fund Calls Top Of Cycle
New York hedge fund Harbinger Capital Partners’s belief that commodities prices could be nearing their peak may spark major changes in the ownership structure of some of Australia's largest mining companies.

 

Dozens of hedge funds are reported to have received subpoenas from the Securities and Exchange Commission as it investigates rumours that have...  

 

How to arrive at fair value during a crisis
Jul 28 2008 21:30
If accounting exaggerates peaks and troughs of the business cycle, it contradicts its aim, say Jean-François Lepetit, Etienne Boris and Didier Marteau Read more »

 

Hedge-fund managers are weighing opportunities in the battered financial sector, another sign of better times ahead. But those expecting hedge-fund managers to ride to the rescue likely will be disappointed.
http://online.wsj.com/article/SB121729431329391909.html?mod=djemheard

Next Generation Brand Management for Hedge Funds
By: Miroslaw Izienicki, Fifth Capital Ltd.
Posted: 07/29/2008 12:43:43 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=edsk&story=edsk297.html

 

Back down to earth for hedge funds of funds
FT.com via Yahoo! News Mon, 28 Jul 2008 6:55 PM PDT
Hedge funds of funds, which have been among the more widely used ways of investing in hedge funds in the past few years, have recently been declining in popularity. New York State's $150bn pension fund is one of several that have shifted money out of funds of funds, instead opting to invest directly in hedge funds that it chooses itself.

 

Covered Bonds a Tough Sell to Hedge Funds
By: Emma Trincal, Senior Financial Correspondent
Posted: 07/29/2008 3:47:22 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15175.html

 

Wealth managers head for hedge funds<http://www.hedgefund-index.com/newstoday.asp>
Source: eFInancialNews.com
Private client managers and stockbrokers in the UK have increased their clients' investments into hedge funds by an average of 2.5 percentage points over the past 12 months, following declines in the more traditional asset classes. More...<http://www.hedgefund-index.com/newstoday.asp>

 

A look behind the hedge fund curtain
Hedge World Tue, 29 Jul 2008 7:24 AM PDT
The South Carolina Retirement System Investment Commission awarded a special kind of mandate to D. E. Shaw. The hedge fund firm will invest SCRS money across a variety of strategies, including long-only, private equity and real estate.

 

RAB Special Situations, the flagship vehicle of London hedge fund manager RAB Capital, has suffered its largest ...
eFinancial News Tue, 29 Jul 2008 8:14 AM PDT
RAB Special Situations, the flagship vehicle of London hedge fund manager RAB Capital, has suffered its largest monthly fall in three years so far in July, as the firm prepares to report its results for the first six months of 2008 on Wednesday.

 

Bank of China buys 30 percent of Swiss hedge fund: report
AFP via Yahoo! News Mon, 28 Jul 2008 9:12 PM PDT
Bank of China, one of the country's big four state-owned commercial banks, has bought a 30 percent stake in Switzerland's Heritage Fund Management (HFM), state media reported Tuesday.

 

Understanding Seasonality and Home Sales by Barry Ritholtz

 

Harbinger Capital Builds 6.6% Stake in Sunoco by Lon Juricic

 

Who’s Really Getting Bailed Out Here by Greg Newton

 

Bank of Canada: Why Follow a Failed Policy? by Michael Shedlock

 

Monday , 28 Jul 2008
Markets move in contrary directions over the future of Mechel's coal mining and steel assets.

 

 

 

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Yield Curve Corner

 

Obama to discuss economy with Bernanke: campaign
Reuters - USA
By John Whitesides WASHINGTON (Reuters) - US Democratic presidential candidate Barack Obama will meet with Federal Reserve Chairman Ben Bernanke on Tuesday ...

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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/VSHSoufriereHills211_G12.jpg

 

Strong Earthquake Shakes L.A.
A magnitude 5.8 earthquake is reported near Los Angeles.
MORE DETAILS: <http://www.wnbc.com/tu/5zGgnkU3A.html>

 

LA suburb at quake epicenter gets hard shake

Reuters - 31 minutes ago

By Gina Keating CHINO HILLS, Calif., July 29 (Reuters) - Living in the shadow of Los Angeles, retiree Doug Sparkes thought that Tuesday's strong tremor had squarely hit the big city.

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Iranian Situation and Other Man Made Disasters

 

 

Iran tells developing states to fight U.N. "bias"
Reuters via Yahoo! News Tue, 29 Jul 2008 7:51 AM PDT
Iran's president called on Tuesday for developing nations to unite against what he said was bias by the U.N. Security Council, which the Islamic Republic accuses of siding with the West in a nuclear row.

 

Medvedev names Iran pointman as U.S. ambassador
Reuters via Yahoo! News Tue, 29 Jul 2008 1:21 AM PDT
Russian President Dmitry Medvedev has appointed Sergei Kislyak, a deputy Foreign Minister who represents Moscow in nuclear talks with Iran, as Russia's new ambassador to the United States.

 

Iraq: Troops Control Almost All Of Iraq -- Petraeus
July 29, 2008 1409 GMT
U.S. Commander in Iraq Gen. David Petraeus said Iraqi and U.S. coalition forces now control the...
http://www.stratfor.com/sitrep/iraq_troops_control_almost_all_iraq_petraeus

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Opalesque’s Corner

 

Editor's Note
- Opalesque Exclusive:  Quant specialist Telesis launches offshore feeder for fund-of-managed-accounts focused on short term quant strategies
- Opalesque Exclusive: CEO of Santander`s alternative asset management arm leaves with 4 colleagues: Trouble at Optimal? Rumor
- Hedge funds may post worst month in 5 years as bank bets sour
- As industry matures, fund of funds see decline in popularity
- Investors demand for alternatives remains high, hedge fund investors most satisfied, according to BofA study
- People: Sorin Capital Management, LLC appoints Brian DiDonato as Senior Partner, Lindsay Jones returns to Hong Kong with FRM, PE exec fired for `housewives` show lands at hedge fund Chimay Capital Management, Merrill Lynch picks up Bear Stearns wealth management trio to service ultra high net worth clients, Marathon taps Bear derivatives head, Sidley expands hedge fund practice in London hiring counsel Barry Breen
- Comment:  Mitsubishi Brain FOF launch, would it be simpler and more cost effective to simply hedge against the MSCI World?
- 130/30: KPMG survey: 51% of `mainstream` fund managers run 130/30 type funds, WealthNotes files first exchange traded note with 130/30 strategy based on S&P 500 Index
- Fund administration survey reveals concerns over error-prone manual processes, data integrity
- M&A: Opalesque Exclusive: N+1 acquires 50% of Access Capital Partners
- Credit Crunch Update: T2 fund manager Tilson predicts 18 months before bottom of housing crisis, Update: Lehman not likely to sell asset arm Neuberger, US Treasury expects covered bonds issuance very soon to kick start home financing industry, Cox seeks to keep SEC main supervisor of investment banks, Merrill to sell mound of CDOs, raise $8.5bln in capital
- Comment:  Has deleveraging even begun?
- Exchanges: Chicago Board of Trade gets Dubai FSA`s nod as recognized body within DIFC
- Legal: Investor suit against UBS over Wood River hedge fund dismissed by judge, Renaissance Capital linked to Russian inquiry, Soros named in Tradewinds Airlines bankruptcy claim, Update: Bankrutpcy judge says Delphi can pursue lawsuit against US hedge fund, Ex-Refco chief plans appeal of prison sentence
- Institutions: Swedish fund divests from hedge funds, KKR pensions investors concerned about private equity IPO trend
- Sovereign Wealth Funds: Sovereign funds may not agree to code of conduct
- Europe: Thames River enters German market with several hedge fund offerings
- Asia: Greenwich Research: Asian investment management industry tops $3trn, secondary effect sees shortfalls in manager confidence
- Emerging Markets: Dow Jones Brazil Titans Index will underlie Samsung Investments ETF, Research firm Copal Partners expands operations to South America
- Frontier Markets: Appetite for emerging markets may be down, but globally uncorrelated frontier markets are still flavor of the month
- Niche Investing: Ad exchanges come into their own
- Commodities: Hedge funds sell oil as ratio to gold narrows
- Event:Connecticut Hedge Fund Association Event:  `Commodity Mania` - Are investors driving commodity prices or is it simple supply & demand?
- News Briefs: Societe Generale Asset Management may be setting up retail operation in Moscow, Markit acquires loan business FCS from JP Morgan, Former Citadel partner writes and directs film about experience at hedge fund
- And Finally: If you plan to break into someone`s home and rob it, you probably shouldn`t take 15 valiums first
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

 

Four Women Kill Dozens In Suicide Blasts in Iraq
BAGHDAD, July 28 -- Wearing their flowing black garments, they can carry hidden explosives past most checkpoints because customs of modesty prevent male guards from frisking them. On Monday, four female suicide bombers in two Iraqi cities used this tactic to enter areas defended by hundreds of...
(By Sudarsan Raghavan, The Washington Post)

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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.