Archive: 08/06/2008
Main News
Ex-Merrill Executive Said to Cancel Hedge Fund Plans
New York Times Mon, 04 Aug 2008 4:32 PM PDT
The former head of Merrill Lynch ’s trading and investment banking business has dropped plans to start his own hedge fund after potential investors dropped out, Bloomberg News reported citing two unnamed sources.
New York Times Mon, 04 Aug 2008 4:32 PM PDT
The former head of Merrill Lynch ’s trading and investment banking business has dropped plans to start his own hedge fund after potential investors dropped out, Bloomberg News reported citing two unnamed sources.
As the downturn in the credit cycle enters its second year, challenging business conditions and substantial write-downs continue to weigh on global investment banks' and brokers' financial performance--and are still placing ongoing pressure on ratings. Second-quarter results remained broadly weak, albeit with an unusually wide dispersion. Setting aside write-downs and focusing on the securities-related segments of these companies, business conditions remain difficult--but not worse than we had previously assumed.
More<http://now.eloqua.com/e/er.aspx?s=795&lid=6101&elq=DD11220CDD554D73AD5432A0CB43C688>
More<http://now.eloqua.com/e/er.aspx?s=795&lid=6101&elq=DD11220CDD554D73AD5432A0CB43C688>
cenario Analysis: Emerging Market Financial Future Flow Securitizations Should Weather Upsets, Both At Home And Abroad<http://now.eloqua.com/e/er.aspx?s=795&lid=6103&elq=DD11220CDD554D73AD5432A0CB43C688>
Hedge Funds Switch to Synthetic Prime Brokerage for Alpha
By: Emma Trincal, Senior Financial Correspondent
Posted: 08/05/2008 2:58:09 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3563.html
By: Emma Trincal, Senior Financial Correspondent
Posted: 08/05/2008 2:58:09 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3563.html
Seed Money Seeks Right Strategies for Current Market
By: Chidem Kurdas, New York Bureau Chief
Posted: 08/05/2008 4:03:48 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3565.html
By: Chidem Kurdas, New York Bureau Chief
Posted: 08/05/2008 4:03:48 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3565.html
What are Some of the Best Practices in Risk Disclosure?
Watson Wyatt Worldwide
Economic Studies | HOW THE WORLD SHOULD INVEST IN ENERGY EFFICIENCY
Consuming energy more efficiently will not only stretch finite natural
resources and slow the increase in carbon emissions but also give
businesses and consumers opportunities to earn a 17 percent average
internal rate of return.
http://e.mckinseyquarterly.com/W0RT01BE9134B32CE4E1928C891AF0
Consuming energy more efficiently will not only stretch finite natural
resources and slow the increase in carbon emissions but also give
businesses and consumers opportunities to earn a 17 percent average
internal rate of return.
http://e.mckinseyquarterly.com/W0RT01BE9134B32CE4E1928C891AF0
The Pain Spreads
Anecdotal evidence of job losses throughout the economy is spreading. It's not just bankers and builders anymore. Read More
Anecdotal evidence of job losses throughout the economy is spreading. It's not just bankers and builders anymore. Read More
WASHINGTON (HedgeWorld.com)—The Securities and Exchange Commission today [Aug. 4] held a roundtable on developments in accounting standards, and in particular on the way companies have used either the Generally Accepted Accounting Principles of the United States or the International Financial Reporting Standards during the past year of market turmoil. ......
Chavez decrees 26 laws on Venezuela's economy, society
Venezuelan President Hugo Chavez issued more than two dozen decrees creating militias and increasing the economy's socialist character. Critics complained that Chavez acted on the last day that he had special legislative powers without consulting major business groups. Some fear the surprise laws will scare off private investment. One of the laws imposes a prison sentence of as much as 10 years for business owners who refuse to produce, import, transport or sell "items of basic necessity." BusinessWeek/Associated Press (04 Aug.)
Venezuelan President Hugo Chavez issued more than two dozen decrees creating militias and increasing the economy's socialist character. Critics complained that Chavez acted on the last day that he had special legislative powers without consulting major business groups. Some fear the surprise laws will scare off private investment. One of the laws imposes a prison sentence of as much as 10 years for business owners who refuse to produce, import, transport or sell "items of basic necessity." BusinessWeek/Associated Press (04 Aug.)
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Yield Curve Corner
Fed-Hike Risks Fade Amid Recession Signs Oil and inflation fears slide as the economy slows, leaving the Fed on hold.
http://online.barrons.com/article/SB121790685707612727.html?mod=djemBF
http://online.barrons.com/article/SB121790685707612727.html?mod=djemBF
Economists expect Fed to keep rates unchanged
AFP -
The Fed, led by chairman Ben Bernanke, cut rates in a bid to fire up economic vitality which has been threatened by a lingering housing market downturn, ...
AFP -
The Fed, led by chairman Ben Bernanke, cut rates in a bid to fire up economic vitality which has been threatened by a lingering housing market downturn, ...
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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/TRCkammuri218_GJL.jpg
US experts predict more active hurricane season
AFP -
MIAMI (AFP) — US weather experts raised their predictions for this year's Atlantic hurricane season on Tuesday, warning that warmer waters could whip up 17 ...
See all stories on this topic
AFP -
MIAMI (AFP) — US weather experts raised their predictions for this year's Atlantic hurricane season on Tuesday, warning that warmer waters could whip up 17 ...
See all stories on this topic
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Iranian Situation and Other Man Made Disasters
US: Iran reaction to nuclear offer not acceptable
AP via Yahoo! News Tue, 05 Aug 2008 12:03 PM PDT
Iran's response to an incentives package aimed at defusing a dispute over its nuclear program is unacceptable, U.S. officials said Tuesday, making the prospects of new sanctions against the country more likely.
AP via Yahoo! News Tue, 05 Aug 2008 12:03 PM PDT
Iran's response to an incentives package aimed at defusing a dispute over its nuclear program is unacceptable, U.S. officials said Tuesday, making the prospects of new sanctions against the country more likely.
Iran Threatens Strait of Hormuz
Key Oil Shipping Passage Could Be Blocked for a Month
BY ELI LAKE - Staff Reporter of the Sun
Two days after a diplomatic deadline passed for Iran to end the reprocessing and enrichment of uranium, the chief of the country's Revolutionary Guard force is threatening to close down one of the world's most critical oil shipping passageways, the Strait of Hormuz.
Key Oil Shipping Passage Could Be Blocked for a Month
BY ELI LAKE - Staff Reporter of the Sun
Two days after a diplomatic deadline passed for Iran to end the reprocessing and enrichment of uranium, the chief of the country's Revolutionary Guard force is threatening to close down one of the world's most critical oil shipping passageways, the Strait of Hormuz.
Iran again fails to give final nuclear reply
AFP via Yahoo! News Tue, 05 Aug 2008 10:54 AM PDT
Iran on Tuesday again ignored calls to give a final answer to a package presented by world powers to end the nuclear standoff, prompting calls for new sanctions to punish its defiance.
AFP via Yahoo! News Tue, 05 Aug 2008 10:54 AM PDT
Iran on Tuesday again ignored calls to give a final answer to a package presented by world powers to end the nuclear standoff, prompting calls for new sanctions to punish its defiance.
Kadhafi warns 'arrogant' Iran of military humiliation
AFP via Yahoo! News Tue, 05 Aug 2008 9:27 AM PDT
Libyan leader Moamer Kadhafi on Tuesday warned "arrogant" Iran that it faces military humiliation on the scale of Iraq for its refusal to respond to western powers over a nuclear impasse.
AFP via Yahoo! News Tue, 05 Aug 2008 9:27 AM PDT
Libyan leader Moamer Kadhafi on Tuesday warned "arrogant" Iran that it faces military humiliation on the scale of Iraq for its refusal to respond to western powers over a nuclear impasse.
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Opalesque’s Corner
- Fund Launches: Diamond Lake`s Kim abandons hedge fund plans after investors balk, Shopkorn to launch hedge fund, Red Dot to launch internal strategy, Morgan Creek launches dislocation FOF
- Performance: Opalesque Exclusive: CC Athena OS Fund returns 8% YTD trading options on the S&P, Update: Harbinger flagship fund loses 16% as oil prices dip
- Assets: Axa`s fund of hedge funds joins small group of players enjoying increased assets
- Indices: Dow Jones Hedge Fund Indices: except for merger arbitrage (+0.05%), all strategies post estimated losses for July, Newedge AlternativeEdge Short Term Traders Index +0.78% in July (+8.65% YTD), CTA index falters in July -2.66%
- Value Investing: Legendary Legg Mason fund manager Bill Miller is in a long slump, as are other value players
- ABL: A small business loan from a hedge fund? As banks tighten their purse strings, hedge funds are offering asset-based loans to small companies
- Opalesque Exclusive: Cash management trends and the shift to preserving capital
- Opalesque Exclusive: The three stages of the current stress pattern according to LNG`s Gargour
- `Pushing it while protecting it`: HF manager Pavlik (up 1.07% YTD) says buying protection is worth the premium
- Institutions: NY comptroller seeks flexibility in managing pension fund, wants to invest more in alternatives
- Regulatory: Citadel calling for cap on options pricing system
- Tax Update: New IRS rulings affect investors, foreign holders of U.S. real estate and hedge funds are targets, US tax bill proposes deduction for HF managers who make charitable donations
- People: Opalesque Exclusive: Lee Hetfield joins ARE Asset Management as portfolio manager, Opalesque Exclusive: Filippo Stefanini joins Eurizon as head of hedge fund research, Scott R. Metchick appointed CIO at Tremont, Yamagishi to be portfolio manager at Zest Asset Management, Yamagishi to be portfolio manager at Zest Asset Management, Allen Cheng named as managing director at Altegris Investments, Aufhauser resigns as UBS fallout continues
- Legal: UBS wins injunction against Vestra Wealth, which poached 75 UBS staff, Assistant is second person charged in SocGen scandal, The cases against Bear Stearns, a guide to the litigation that followed the collapse of the 85-year-old firm, Most US shareholder class actions blame sub-prime, Top securities analyst Bove being sued by BankAtlantic for his list of 107 banks ranked by financial strength
- Credit Crunch Update: US short-selling rules boost ETF market, Lehman makes inquiries to possible bidders in sale of Neuberger & Berman, Thain on Merrill`s next move, Pt. 1 (video), Citigroup takes $176m loss on credit card ABS, Britain`s RBS facing record banking loss, HSBC`s profits fall 28% amid worst conditions for `several decades`, SocGen slides 63% in second quarter, Arab Banking Corp suffers $71m loss on subprime exposure, NYUs Roubini on the mark about the subprime collapse, banking crisis and Fannie/Freddie cautions `1 trln is not a ceiling, it is a floor`
- Commentaries: Greenspan warns of more bank bail-outs, Alan Greenspan: Repel the calls to contain competitive markets, Meredith Whitney: Credit crunch far from over, housing woes will force banks to keep taking write-downs, The cost of a wrong turn: Events at Bear Stearns a year ago
- Europe: Now over 300 multi-family offices: London lures family offices of super-rich, 15% (est.) more offices p.a. over past 3 years, Brokers rush to build links among dark pools
- Middle East: Advent estimates 60 hedge funds in Bahrain and $3bln in assets, ETF Securities announces world`s first Shariah compliant precious metal ETC platform, Kuwait halts dollar flows used for forex bets
- Africa: Ian Hamilton`s Investment Data Services (IDS) in Cape Town now administers R50bln after five years of growth, Nigeria finalising plans for sovereign wealth fund
- Asia: Update: Norton Rose involved in launch of Beacon India fund, Some Chinese fund managers suspend management fees, China wins financial Olympics by avoiding toxic debt investments, HSBC cautions on credit crisis in Asia
- Environmental: Brazil launches rainforest fund
- Commodities: Heinz sees hedge funds moving out of commodity markets (Video), Hedge funds made bets on oil falling in July, Oil falls as fears for growth intensify, GlobalCOAL Futures to debut in fall 2008, aims to bring increased liquidity for more accurate pricing on global coal demands, India to retain curb on rice exports as well as futures, GSCI Commodities plunge in July, Oil, corn, platinum drop as commodities slump on slower economy
- Events: Ken Langone selected to receive 100 Women in Hedge Funds` Effecting Change Award at November gala
- Activist trading: Daimler says `no indication` of investor buying, Swedish investor Cevian Capital buys shares in Daimler, WCI files for Chapter 11 Protection, Icahn loses about 1% of his hedge fund
- News Briefs: Nomura A.M. to launch first Russia linked ETN in Japan, CME Group equity index product team increases with two new hires, Garrett Van Wagoner to step down as manager of growth fund, Update: Neutron, not atom bomb hits HedgeWorld, Coffey to stay in London after leaving GLG, MasterCard and Eoncap Islamic Bank to launch world`s first Islamic debit MasterCard
- ...And finally: Pickup truck thief lost car to armed carjacker, who promptly ordered him to `get out and push` after running out of gas
- Logon: http://www.opalesque.com/index.php?act=archive
- Performance: Opalesque Exclusive: CC Athena OS Fund returns 8% YTD trading options on the S&P, Update: Harbinger flagship fund loses 16% as oil prices dip
- Assets: Axa`s fund of hedge funds joins small group of players enjoying increased assets
- Indices: Dow Jones Hedge Fund Indices: except for merger arbitrage (+0.05%), all strategies post estimated losses for July, Newedge AlternativeEdge Short Term Traders Index +0.78% in July (+8.65% YTD), CTA index falters in July -2.66%
- Value Investing: Legendary Legg Mason fund manager Bill Miller is in a long slump, as are other value players
- ABL: A small business loan from a hedge fund? As banks tighten their purse strings, hedge funds are offering asset-based loans to small companies
- Opalesque Exclusive: Cash management trends and the shift to preserving capital
- Opalesque Exclusive: The three stages of the current stress pattern according to LNG`s Gargour
- `Pushing it while protecting it`: HF manager Pavlik (up 1.07% YTD) says buying protection is worth the premium
- Institutions: NY comptroller seeks flexibility in managing pension fund, wants to invest more in alternatives
- Regulatory: Citadel calling for cap on options pricing system
- Tax Update: New IRS rulings affect investors, foreign holders of U.S. real estate and hedge funds are targets, US tax bill proposes deduction for HF managers who make charitable donations
- People: Opalesque Exclusive: Lee Hetfield joins ARE Asset Management as portfolio manager, Opalesque Exclusive: Filippo Stefanini joins Eurizon as head of hedge fund research, Scott R. Metchick appointed CIO at Tremont, Yamagishi to be portfolio manager at Zest Asset Management, Yamagishi to be portfolio manager at Zest Asset Management, Allen Cheng named as managing director at Altegris Investments, Aufhauser resigns as UBS fallout continues
- Legal: UBS wins injunction against Vestra Wealth, which poached 75 UBS staff, Assistant is second person charged in SocGen scandal, The cases against Bear Stearns, a guide to the litigation that followed the collapse of the 85-year-old firm, Most US shareholder class actions blame sub-prime, Top securities analyst Bove being sued by BankAtlantic for his list of 107 banks ranked by financial strength
- Credit Crunch Update: US short-selling rules boost ETF market, Lehman makes inquiries to possible bidders in sale of Neuberger & Berman, Thain on Merrill`s next move, Pt. 1 (video), Citigroup takes $176m loss on credit card ABS, Britain`s RBS facing record banking loss, HSBC`s profits fall 28% amid worst conditions for `several decades`, SocGen slides 63% in second quarter, Arab Banking Corp suffers $71m loss on subprime exposure, NYUs Roubini on the mark about the subprime collapse, banking crisis and Fannie/Freddie cautions `1 trln is not a ceiling, it is a floor`
- Commentaries: Greenspan warns of more bank bail-outs, Alan Greenspan: Repel the calls to contain competitive markets, Meredith Whitney: Credit crunch far from over, housing woes will force banks to keep taking write-downs, The cost of a wrong turn: Events at Bear Stearns a year ago
- Europe: Now over 300 multi-family offices: London lures family offices of super-rich, 15% (est.) more offices p.a. over past 3 years, Brokers rush to build links among dark pools
- Middle East: Advent estimates 60 hedge funds in Bahrain and $3bln in assets, ETF Securities announces world`s first Shariah compliant precious metal ETC platform, Kuwait halts dollar flows used for forex bets
- Africa: Ian Hamilton`s Investment Data Services (IDS) in Cape Town now administers R50bln after five years of growth, Nigeria finalising plans for sovereign wealth fund
- Asia: Update: Norton Rose involved in launch of Beacon India fund, Some Chinese fund managers suspend management fees, China wins financial Olympics by avoiding toxic debt investments, HSBC cautions on credit crisis in Asia
- Environmental: Brazil launches rainforest fund
- Commodities: Heinz sees hedge funds moving out of commodity markets (Video), Hedge funds made bets on oil falling in July, Oil falls as fears for growth intensify, GlobalCOAL Futures to debut in fall 2008, aims to bring increased liquidity for more accurate pricing on global coal demands, India to retain curb on rice exports as well as futures, GSCI Commodities plunge in July, Oil, corn, platinum drop as commodities slump on slower economy
- Events: Ken Langone selected to receive 100 Women in Hedge Funds` Effecting Change Award at November gala
- Activist trading: Daimler says `no indication` of investor buying, Swedish investor Cevian Capital buys shares in Daimler, WCI files for Chapter 11 Protection, Icahn loses about 1% of his hedge fund
- News Briefs: Nomura A.M. to launch first Russia linked ETN in Japan, CME Group equity index product team increases with two new hires, Garrett Van Wagoner to step down as manager of growth fund, Update: Neutron, not atom bomb hits HedgeWorld, Coffey to stay in London after leaving GLG, MasterCard and Eoncap Islamic Bank to launch world`s first Islamic debit MasterCard
- ...And finally: Pickup truck thief lost car to armed carjacker, who promptly ordered him to `get out and push` after running out of gas
- Logon: http://www.opalesque.com/index.php?act=archive
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Misc. Items of Interest
Mon, 04 Aug 2008, 21:10
Insurance News Net
Many traders have discovered the benefits of selling naked options on stocks. Done right, this sometimes-risky strategy can be quite profitable. But selling naked options on exchange-traded funds can reduce your risk. Here's how. Selling naked options on an exchange-traded fund (ETF) has an advantage over selling an individual stock option. In terms of their vulnerability to market surprises, ETFs are usually safer than individual stocks. One stock may take a big hit because of isolated bad news (earnings, litigation, scandals, etc.), but it is less likely that an entire index will suffer.
Ancient shark had colossal bite *
The great white shark may have awesome jaws but they are nothing compared with those of megalodon, its gigantic, whale-eating ancestor.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7540835.stm
The great white shark may have awesome jaws but they are nothing compared with those of megalodon, its gigantic, whale-eating ancestor.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7540835.stm
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Funnies, Facts, Quotes, etc….
vituperate y-TOO-puh-rate, -TYOO-, vi-, verb:
To find fault with; to scold; to overwhelm with wordy abuse; to censure severely or abusively; to rate.
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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)
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Regulatory Info
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
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