Main News

US Says Banks on `Problem List' Rose 30% in Quarter (Update2)

Bloomberg - 2 hours ago

By Alison Vekshin Aug. 26 (Bloomberg) -- The US Federal Deposit Insurance Corp. said its ``problem list'' of banks increased 30 percent in the second quarter to the highest total in five years as more commercial real-estate loans were overdue.

Research Update: Fannie Mae Sr. Debt Rating Affirmed At 'AAA/A-1+'; Other Ratings Lowered, On CreditWatch Neg.<http://now.eloqua.com/e/er.aspx?s=795&lid=6774&elq=1BDA8F7A9FD84E898CFAE2406CC525FD>

Research Update: Freddie Mac Sr. Debt Rating Affirmed At 'AAA/A-1+'; Other Ratings Lowered, On Watch Negative<http://now.eloqua.com/e/er.aspx?s=795&lid=6775&elq=1BDA8F7A9FD84E898CFAE2406CC525FD>

Gross, Fuss discuss capital raising by Fannie, Freddie
Bill Gross, chief investment officer at Pacific Investment Management, and Dan Fuss, vice chairman of Loomis Sayles, said they would participate in fundraising efforts by Fannie Mae and Freddie Mac if the Treasury is also involved. The two disagreed on how the deals should be structured: Gross is interested in a straight preferred-stock offering, while Fuss suggested a convertible-debenture offering. Reuters (25 Aug.)

Economists: Inflation tops credit crunch as greatest threat
A survey of the members of the National Association of Business Economists showed inflation to be the chief concern, ahead of the mortgage and credit crises. Of the respondents, 15% see overall inflation as the greatest threat to the economy, and 16% find energy prices to be the greatest short-term threat. CNN (25 Aug.)

Volatility Takes Its Toll on Wall St.
Shares Fall Sharply As Unease Persists
(By Heather Landy, The Washington Post)

Analysis: More to Play for in Hedge Funds' Favorite Trade
By: Reuters
Posted: 08/26/2008 11:14:42 AM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3577.html

Dueling Visions - Barrons.com

Aug 25, 2008 ... John McCain's and Barack Obama's tax plans hold vastly different implications for the US economy. Required reading before you vote.

First Reserve in nuclear venture
Aug 25 2008 23:30
First Reserve, the US private equity group specialising in energy, will this week unveil plans to invest hundreds of millions of dollars in a nuclear fuel venture Read more »

Can asset managers balance “innovation” and “simplicity”? A new report says they better hope so.

Jul 28th, 2008 | Filed under: Institutional Investing

Institutions tell pollsters “more fees”, “more consultants” and “more funds of funds”

Jul 27th, 2008 | Filed under: Institutional Investing

A New Stream for Hedge Fund Investors? by Cam Hui

An Unfortunate Turn of Phrase: Take It with a Lump of Coal by Greg Newton

Investors Skeptical On Lehman HFs
Private equity firms looking at buying Lehman Brothers’ asset management business are expressing doubts about the unit’s minority stakes in several hedge funds.

Troubled economy weighs on Obama's ambitious agenda. With the Democratic National Convention underway, Obama is finding his ambitious economic agenda threatened by economic reality, WSJ says. Obama is calling for a government healthcare plan to cover millions without insurance; a system of tradeable pollution permits to reduce emissions; and higher income-tax rates and capital-gains tax rates. His top priorities would cost hundreds of billions of dollars a year, not counting a stimulus plan he is considering with a price tag of $115B.

Merrill's Cruise to Nowhere

Merrill may be trying to get out of its United Artists deal. Read More

Strait Profit

Why Singapore's Temasek fund hasn't been hobbled by its exposure to the financial sector. Read More

Stratfor - Geopolitical intelligence, economic, political, and ...

U.S. Federal Aviation Administration building in Washington D.C.. U.S.: A Critical Air-Traffic Tool Goes Down. August 27, 2008 0009 GMT ...

Hedge funds could profit if battered financial stocks fall further
International Herald Tribune Tue, 26 Aug 2008 10:08 AM PDT
The trade-of-the-moment in the hedge fund industry - betting on falling financial stocks and rising commodities - is set to offer further profits, despite a setback in July, but managers might have to alter their tactics.

Interview With Legendary Ken Fisher
TheStreet.com Tue, 26 Aug 2008 8:10 AM PDT
The hedge fund manager discusses the price-to-sales ratio.

Fortress Plans Hedge Fund for Mideast, North Africa Investments
Bloomberg.com Tue, 26 Aug 2008 9:20 AM PDT
Aug. 26 (Bloomberg) -- Fortress Investment Group LLC , the manager of $18 billion in hedge funds, plans a new fund to invest in the Middle East and North Africa as countries in the region seek to expand their economies beyond the oil industry.

Majority of Hedge Fund Firms Require Increased Focus on Succession Planning Issues
PR Newswire via Yahoo! Finance Tue, 26 Aug 2008 8:33 AM PDT
On the whole, Senior Partners at established hedge fund firms have not done sufficient succession planning to ensure that their firms will operate as desired after a change in ownership according to "At Risk: Managing for the Future," a new survey conducted by CPA firm Rothstein Kass.

A New Stream for Hedge Fund Investors?
Seeking Alpha - New York,NY,USA
The news of the demise of former CNBC anchor Ron Insana’s venture has been a catalyst for more questions about the hedge fund business model. ...

Russell Led Hedge Investors to Losses
Wall Street Journal Interactive - Tuesday August 26, 09:45 BST

Russell Investments winds down funds of funds
Russell Investments is winding down three of its funds of funds, which focused on institutional investors, amid investor withdrawals and slip in performance.  (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/391434/MTk4MTI1OjE4NDA2/

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Yield Curve Corner

Read his lips: Don't bank on bailouts, Bernanke warns
Globe and Mail - Canada
US Federal Reserve Board chairman Ben Bernanke warned last week that the government's safety net for brokers, banks and mortgage lenders won't necessarily ...

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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/TRCgustav239_N7.jpg

Hurricane Gustav aims for U.S. Gulf oil facilities

http://uk.reuters.com/article/oilRpt/idUKN2642239720080826

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Iranian Situation and Other Man Made Disasters

http://www.globalincidentmap.com/home.php

http://icasualties.org/oif/

Iran boosts spending to promote Koran culture
AFP via Yahoo! News Tue, 26 Aug 2008 9:20 AM PDT
The government of President Mahmoud Ahmadinejad said on Tuesday it has boosted spending to promote the Muslim holy book the Koran and revive revolutionary ideals in Iran.

Drought stricken, Iran buys US wheat for first time in 27 years
AFP via Yahoo! News Mon, 25 Aug 2008 7:44 PM PDT
Wracked by drought, Iran has turned to the United States for wheat for the first time in 27 years, marking a setback for Tehran's search for agricultural self-sufficiency.

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Opalesque’s Corner

- UK Special - Opalesque Exclusive: A good season for stock picking in the UK - Legal & General`s one-year old small cap fund returns 14% so far, UK small caps update, U.K. banks may wish they had left the lending party sooner
- Other Voices: Recession in China is likely, strong domestic demand but no rally for the Olympics
- Fund launches - Citadel targeting $1bln for launch of global macro hedge fund, Alfa Kraft launches commodity quant fund in Sweden, Guiness family office launches first retail fund, CLSA Capital launches Asian water and waste fund, Brazilian investment firm Astra launches master-feeder fund for foreigners
- Fund closures - Russell Investments winds down three of its four FoHFs, Update: Basis Capital says it will return AUS$28m to investors in September
- Performance - Opalesque Exclusive:  Delman`s unique 100/30 fund on track to return 8% pa as August hits 5% YTD return, L/S Progress Capital focuses on large caps and inches ahead during summer
- Lehman Brothers update - Potential purchasers of Lehman asset management arm not interested in minority stakes of hedge funds DE Shaw, GLG, Ospraie, giving funds chance to buy stakes back at bargain prices, KKR has expressed `high level` in Lehman`s Neuberger, Lehman stock has factored in billion dollar write downs, shows market confidence that bank will emerge from crisis, KDB warned by `cautious` regulator against buying Lehman
- 130/30 - Appeal of 130/30 funds swells, strategy expected to reach $2tln by 2010
- Credit crunch shifts Fitch`s approach to leveraged finance market, rating agency taking a more circumspect view
- Fannie/Freddie - JPMorgan becomes first bank to write down value of Fannie/Freddie shares, Top economists say Fannie/Freddie response at critical point, Treasury expected to inject funds
- Credit Crunch - Libor signals credit seizing as banks balk at lending, suspicions that `banks are still hiding losses`, UBS to cut first half bonus payments, Credit card crisis?  Britons still taking on almost GBP1bln of unsecured loans every month
- M&A - BNP Paribas buys into Saudi asset management firm, SKorea watchdog starts review of HSBC bid for bank
- People - Rubin to give up Chairman of the Board committee role at Citi, but remain senior counselor, Russell assigns more specialists to Asia
- Regulatory - SEC and ASIC enter recognition arrangement for US and Australian stock exchanges and broker-dealers to operate in both jurisdictions, China considers expansion of insider trading ban
- Exchanges - Multi Commodity Exchange of India gets nod for currency derivatives
- Indices - S&P launches index of Indian equities for world investors
- Sovereign Wealth Funds - Prudential grows 14% in China, People's Bank of China takes 1% stake
- United States - What Obama`s VP pick means for Wall Street, Biden not a fan of hedge funds, MBNA paid Biden's son consultant fees as Senator supported legislation which favored credit card industry, U.S. Car makers seek help as sales plunge
- Europe - Switzerland asked U.S. not to push UBS for Swiss client data
- Asia - Morgan Creek invests in Indian PE firm, Merrill and Goldman putting people and money into India credit desks, Tokyo FSA putting finishing touches on temporary dividend and capital gains tax breaks to boost Japan markets
- Environmental Investing - Indian Energy Exchange trades 251m units of electricity in first two months of operation, American Wind Energy Association yearly convention shows exponential growth, moved to Chicago to handle number of attendees
- Commodities - OPEC likely to keep output steady in Sept, Oil prices fluctuate on waffling dollar and tropical storm Gustav brewing In the Caribbean, US grain exports snags highlight infrastructure problems
- Activist Investing - CSX says hedge funds shouldn't have voted at meeting,Citi analyst cuts Cablevision rating to `sell`,Soros Fund Management discloses 11.3% stake in Global Ship Lease (GSL)
- Events - Dubai International Finance Center seminar to explore opportunities in the regional funds industry
- News Briefs - Credit Suisse buys 80% of Asset Management Finance for $384m, Deutsche Bank to offer international clients access to Saudi stock exchange via swaps
- ...And finally: Feisty puppy scares off 3 bears in NY backyard, cubs fleeing up a tree
- 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….

peregrination pehr-uh-gruh-NAY-shun, noun:

A traveling from place to place; a wandering

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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.