Main News

 

Fannie, Freddie Under The Microscope

Forbes - 1 hour ago

Wall Street finished with gains Wednesday, but for many the closing numbers were an afterthought, as the soap opera of Fannie Mae and Freddie Mac continues to play out in front of what amounts to a captive audience.

 

MS, Goldman Change Lending Approach
Morgan Stanley and Goldman Sachs are responding to the credit crisis with systems that use the market's view of their own creditworthiness as a basis for lending decisions, reports. More

 

Investors Welcome New Disclosure Rules for Banks and Other Sellers of Credit Derivatives

Posted: 19 Aug 2008 02:45 PM CDT

 

Former IMF economist predicts failure of large U.S. bank
Former International Monetary Fund chief economist Kenneth Rogoff expects to see a large U.S. bank fail in the next few months, estimating more trouble for the U.S. economy. "I think the financial crisis is at the halfway point, perhaps. I would even go further to say, 'The worst is to come,'" he said at a financial conference. Rogoff also said the Federal Reserve was wrong to slash interest rates as "dramatically" as it did. Reuters (19 Aug.)

 

U.S. walks tightrope between inflation, recession
The U.S. is battling inflation and a recession simultaneously as higher costs for food and energy affect nearly all products, increasing consumer prices. Some economists see the slowdown as an antidote for inflation; others see inflation as a continuing threat. Options for the average American are that either inflation will reduce their buying power or rising prices will spell the end of some jobs and businesses. The New York Times (19 Aug.)

 

Ticked Off
Slouching Tiger
Paulette Miniter
Investors who jumped on the Beijing Games bandwagon suffered Olympic-size losses.
http://www.smartmoney.com/t.cfm?pId=7&mID=696&mDt=08/20/2008&ui=1157312&ctu=%2Firritable%2Dinvestor%2Findex%2Ecfm%3Fstory%3D20080820%2Dinvesting

 

EM Performance Up, Inflows Down: HFR
By: Chris Clair, Managing Editor
Posted: 08/20/2008 5:53:53 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=indx&story=indx1301.html

 

Alternative Investments That Deliver Fun And Profits<http://www.hedgefund-index.com/newstoday.asp>
Source: CNBC
It’s hard to drum up much enthusiasm for investing these days -- even if you have the money.

 

Mark Zandi: Blame regulators, lenders for housing mess; recovery ...
MarketWatch - USA
... of the problem with his new book called "Financial Shock - A 360 Look at the Subprime Mortgage Implosion and How to Avoid the Next Financial Crisis. ...

 

BOOK REVIEW: Shiller's Subprime Solutions
TheStreet.com - USA
Who's to blame for the subprime crisis? Real estate speculators, mortgage brokers, underwriters, ratings agencies, borrowers, appraisers and investment ...

 

Goldman Reiterates $149 Per Barrel End-2008 Oil Forecast
By: Reuters
Posted: 08/20/2008 12:42:50 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1383.html

 

Wednesday , 20 Aug 2008
A 65% overall decline in the nickel price since early 2007 has caused several international nickel producers to reconsider their project timetables and prompted the suspension of higher-cost operations.

 

Wednesday , 20 Aug 2008
A dig at GATA from a U.S. gold coin dealer over assumptions it has made, and publicised, regarding the U.S. Mint’s recent suspension of 1 ounce Gold Eagle sales. All credit to GATA though in that it has linked to this article on its own website too.

 

Hedge Fund Lone Pine Seeks Out Gains With Eclectic New Holdings
Indie Research via Yahoo! Finance Wed, 20 Aug 2008 6:16 AM PDT
According to Bloomberg, Lone Pine returned 47% in 2007.

 

Och-Ziff Funds Greenhouse Gas Credits to Bury Carbon
Bloomberg - Wednesday August 20, 09:32 BST

 

Carbon trading in the U.S. is a lot closer than many realize. Both presidential candidates agree that an emission trading system, also known as cap-and-trade, would be the best way to reduce America’s greenhouse gas emissions. So no matter who wins the election this fall, the next administration can be expected to propose the creation of a system for trading carbon emission allowances. The resulting U.S. carbon market could be up and running by as early as 2012, and annual turnover could be worth between $40 billion and $150 billion in the first year of the program.

Full Story...

Tue, 19 Aug 2008, 22:39

The Times

The hedge fund group that took a huge bet on Northern Rock as it was imploding last autumn has reportedly lost 85 per cent of its investors' money,...

 

Third Point Targeted By SEC
Third Point CEO Daniel Loeb tells his investors that the SEC is investigating his firm’s dealings with other hedge fund managers, Alpha reports. Third Point also suffered investment losses in July. > Read More

 

The Great Consumer Crash of 2009

by: James Quinn posted on: August 14, 2008 | about stocks: DIA / QQQQ / SPY / XRT 

 

 

 

The Real World Order
August 18, 2008 1835 GMT
On Aug. 8 the Russians showed the world that the 21st century will be like any other.
http://www.stratfor.com/weekly/real_world_order

 

Running a Hedge Fund Is Harder Than It Looks on TV
New York Times Tue, 19 Aug 2008 4:06 AM PDT
Only a few years ago, it seemed so easy to start up a hedge fund. So easy, in fact, that Ronald G. Insana, then one of CNBC’s best-known anchors, tried to get in on the action with his fund of hedge funds.

 

453 U.S. Subprime RMBS Classes Downgraded On Revised Assumptions; 1,914 Ratings Affirmed<http://now.eloqua.com/e/er.aspx?s=795&lid=6628&elq=3E49DF6FF7AE4135906909BB8EB8CFC8>

 

Time to Avoid the Stock Markets Altogether by Enzio von Pfeil

Martin Wolf on Capitalism by Felix Salmon

 

JANA Partners Shows New Stakes in Century Aluminum and Thinkorswim, Boosts AK Steel Stake by Lon Juricic

 

Hedge Fund Tracking: Blue Ridge Capital (John Griffin) by Market Folly

 

Credit Crunch Now Hitting Venture Debt - Barron's by Mark McQueen

 

Finding Useful Work for Ron Insana by Greg Newton

 

Total Hedge Fund Assets Approach $3 Trillion by David Enke

 

Commodity Hedge Funds 'Ending In Tears' by David Enke

 

Hedge Funds Appear to Have Dodged a Bullet by Macro Man

 

_________________________________________________________________________

Yield Curve Corner

 

Summary Box: Bernanke's action up for debate
CNNMoney.com - USA
NEW YORK (Associated Press) - WHAT'S ON TAP: Federal Reserve Chairman Ben Bernanke, his Fed colleagues, academics, economists and international central bank ...

_________________________________________________________________________

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/TRCfay233_N7.jpg

 

FT series on climate change

_________________________________________________________________________

Iranian Situation and Other Man Made Disasters

 

Iran bans movie star from leaving for Hollywood
AFP via Yahoo! News Wed, 20 Aug 2008 8:13 AM PDT
Iran has banned an award-winning young actress from leaving the country over her appearance in a star-studded Hollywood production, the state news agency IRNA said on Wednesday.

 

Iran to continue 'positive' nuclear talks with IAEA
AFP via Yahoo! News Wed, 20 Aug 2008 8:19 AM PDT
Iran said on Wednesday that talks on its controversial nuclear drive with top UN atomic watchdog official Olli Heinonen were "positive" and would continue.

 

Geopolitical Diary: The Georgian-Russian Conflict and a Return to Iran
August 20, 2008 0139 GMT
The Iranian situation faded from the spotlight in recent weeks as the world was transfixed by the conflict between Georgia and Russia. But now that the dust is settling in the Caucasus, the drama continues, only with fresh geopolitical dynamics now factoring into the script.
http://www.stratfor.com/geopolitical_diary/georgian_russian_conflict_and_return_iran

 

Iran: The Significance of a Failed Satellite Launch
August 19, 2008 1852 GMT
Though likely a failure, Iran's attempted satellite launch Aug. 16 was still a noteworthy development.
http://www.stratfor.com/analysis/iran_significance_failed_satellite_launch

 

Iran: Plans In The Works To Send Astronaut Into Space Within 10 Years
August 20, 2008 1520 GMT
The head of the Iranian aerospace program said Aug. 20 that Iran plans to send its first...
http://www.stratfor.com/sitrep/iran_plans_works_send_astronaut_space_within_10_years

 

The U.S., Russia and Iran: The Next Phase of International Relations
August 20, 2008 1258 GMT
In the wake of the conflict in Georgia, the state of U.S.-Russian relations has zoomed into focus -- but Iran remains a core interest for Washington. How will the United States steer these diplomatic straits in pursuit of strategic priorities?
http://www.stratfor.com/podcast/u_s_russia_and_iran_watching_next_phase_international_relations

 

 

 

_________________________________________________________________________

Opalesque’s Corner

 

- Opalesque Exclusive:  Investing in A Shares, Marco Polo Pure A.M. analyzes the layers of Chinese government policies which effect the markets as well as "The Olympic Effect" on the Chinese economy - Part Two, JPMorgan says China is considering stimulus package of $29-58bln or 1.0-1.5% of GDP
- SLI`s Global Absolute Return Strategies fund passes GBP500m
- Seeders - Accelerator Capital Fund seeds L/S energy and L/S North American equities funds with $20m each
- July 2008 HF performance commentary - Eurekahedge
- State Street reports investor confidence index declined from 84.0 to 77.2 in August
- Legal - Hedge fund trader Paul Eustace and Philadelphia A.A.M. to pay $279m to defrauded customers and $20m in penalties, Receiver unlikely to recoup all scam losses, Bidens` firm Paradigm seeks to dismiss Provini` suit for being filed in wrong state and court, Court ruling in Basis Capital case means some investors may have more luck getting a refund from troubled fund managers, Morgan Stanley faces BP9m lawsuit over failed Irish mortgage venture
- Regulatory - Opalesque Exclusive: The Regulatory Compliance Association to testify before Congress on hedge fund valuation practices, asks hedge fund industry participants to email contributing comments by Aug 29, U.S. SEC to propose new short selling rule in weeks, `will focus on market-wide solutions`
- A.R.S. Update - SEC`s Cox: `nobody is getting a pass` on auction-rate probes, Massachusetts official Gavin asks Fidelity to buy back auction rate securities
- Hennessee Group reports `stagflation coming to an end`, `headline inflation has peaked`, expects FED will hold rates into 2009 and the next move will be down, not up
- Credit Crunch Update - Frannie and Freddie continue slide, Freddie pays highest risk premium to sell $3bln in bonds, Comment: Reliving the S&L meltdown, Lehman`s market value plummets 13% on negative analyst comments, Barclays quashes Lehman rumour, would buy wealth management co but not an investment bank, A&L sold second mortgage-backed bond out of the UK since credit turmoil struck, ICICI unloads $275m in foreign credit derivatives but keeps those with underlying loans to Indian companies, Fitch reports $423bln of bonds downgraded in past year
- Outlook - Former IMF chief Rogoff says large U.S. bank collapse seen ahead, UBS economists predict US likely to slip into recession
- London`s status as top financial centre under threat - Report
- People - Carlyle Chairman Gerstner to retire, successor to be named in near future, Asset Control adds to four to staff, Barclays hires RBS Coutts exec for Singapore job, Alliance appoints Garrett-Cox as chief
- Environmental Investing - Och-Ziff to invest $500m in projects to bury carbon, US emissions market to triple its growth, 3 refineries part of $2bln offshore oil port project, solve shallow water problems for super tankers into US, Irish energy group to determine if Irish Sea underground saline reservoirs can store carbon and natural gas, Shell and others fund pilot algae biofuel facilities, Carnegie Mellon report shows US is responsible for 6% of China emissions from production for export
- Commodities - Eclectica`s CIO Hendry says speculation over, gold going to $600, Venezuela to propose oil output cut at next OPEC meeting, declining oil proof speculation was driving prices, Australian fears over end to resource commodities boom, Rice flour`s use on rise as substitute for wheat in sweets, Facts and fallacies about commodity investment flows
- Exchanges - Four Eurex futures now available for U.S.-based customers after CFTC approval, After 2 recent board members exit, Bombay Stock Exchange still under scrutiny and possible regulatory enquiry for propping up its derivatives segment
- Art Investing - Opalesque Exclusive:  ART Photography Fund, launched in mid-March stands at +6.1% YTD, allows investors to borrow fund investments for display, market shift - London ahead of New York, `spectacular figures` in traditional markets in H1
- Record-breaking number of candidates sat for the CFA June 2008 examinations
- Event - 100 Women In HFs` next Chicago event: The endowment model approach to asset allocation and investment, September 4
- Activist Investing - Lampert fund wins two new AutoZone board seats, Breeden Capital added 800,000 shares of the medical-tech company Hill-Rom, Steel Partners` nominees overwhelmingly elected to Point Blank board
- News Briefs - HSBC spent $660,000 lobbying US government in 2Q, SEC announces successor to Edgar database, will make company and fund information interactive, Cerulli `s report finds some asset managers take short term view when evaluating their own investment professionals, Credit Suisse first major bank to have private banking services aimed at gay community, Citi to offer custody and clearing in Nigeria, Tata sets sights on Citi Global Services
- And Finally. Confused sea turtles march straight into restaurant
- Logon: http://www.opalesque.com/index.php?act=archive

_________________________________________________________________________

Misc. Items of Interest

 

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

 

bruit BROOT, transitive verb:

To report; to noise abroad.

 

_________________________________________________________________________

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:

_________________________________________________________________________

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

_________________________________________________________________________

Regulatory Info

 

 

_________________________________________________________________________

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.