Archive: 09/11/2008
Main News
Lehman: Too big to fail?
CNNMoney.com - USA
Since then, several Fed members, most notably chief Ben Bernanke, have gone out of their way to defend the action, arguing that Bear Stearns simply was too ...
CNNMoney.com - USA
Since then, several Fed members, most notably chief Ben Bernanke, have gone out of their way to defend the action, arguing that Bear Stearns simply was too ...
It long has been accepted wisdom on Wall Street that Lehman Brothers won't be allowed to collapse, but now the market isn't so sure.
http://online.wsj.com/article/SB122101017947317777.html?mod=djemheard
http://online.wsj.com/article/SB122101017947317777.html?mod=djemheard
CNNMoney.com - Related articles »
Fed Loans May Give Lehman Breathing Room Bear Lacked (Update2)
Bloomberg - USA
Fed Chairman Ben S. Bernanke said he wanted to avoid an episode similar to the Bear Stearns rescue in March, when the central bank agreed to lend $29 ...
Bloomberg - USA
Fed Chairman Ben S. Bernanke said he wanted to avoid an episode similar to the Bear Stearns rescue in March, when the central bank agreed to lend $29 ...
Greenspan applauds government takeover of Fannie, Freddie
Former Federal Reserve Chairman Alan Greenspan applauded the U.S. government's bailout of Fannie Mae and Freddie Mac. Greenspan had urged Congress to empower the government with authority to manage large companies in crises to protect taxpayers, although he proposed that the Fed should not be relied on for handling bailouts and that the process needs to be transparent. CNBC (09 Sep.)
Former Federal Reserve Chairman Alan Greenspan applauded the U.S. government's bailout of Fannie Mae and Freddie Mac. Greenspan had urged Congress to empower the government with authority to manage large companies in crises to protect taxpayers, although he proposed that the Fed should not be relied on for handling bailouts and that the process needs to be transparent. CNBC (09 Sep.)
Ackman Has Ideas for Fannie, Freddie
By: Reuters
Posted: 09/10/2008 10:33:06 AM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15249.html
By: Reuters
Posted: 09/10/2008 10:33:06 AM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15249.html
Fannie Mae and Freddie Mac have provided a painful lesson for investors in all financial stocks: During a crisis, take everything a firm says with a shaker-full of salt.
http://online.wsj.com/article/SB122101061230017809.html?mod=djemheard
http://online.wsj.com/article/SB122101061230017809.html?mod=djemheard
U.S. May be Vulnerable to Sovereign Funds: Report
09/09/2008 6:03:10 PM ET
NEW YORK (Reuters)—The United States' current reliance on foreign governments for financing represents a strategic vulnerability, according to a report by the Council of Foreign Relations released on Tuesday. The longer the United States relies on international central banks and sovereign funds to support large external deficits, the greater the risk the economy's need for external credit will constrain the government's policy options, the council wrote in the report.
09/09/2008 6:03:10 PM ET
NEW YORK (Reuters)—The United States' current reliance on foreign governments for financing represents a strategic vulnerability, according to a report by the Council of Foreign Relations released on Tuesday. The longer the United States relies on international central banks and sovereign funds to support large external deficits, the greater the risk the economy's need for external credit will constrain the government's policy options, the council wrote in the report.
Worst Year for HFs Since '87: Hennessee
09/09/2008 5:54:38 PM ET
NEW YORK (HedgeWorld.com)—Not much went right for hedge fund managers in August, according to two newly released measures of industry performance. Chicago-based Hedge Fund Research Inc.
09/09/2008 5:54:38 PM ET
NEW YORK (HedgeWorld.com)—Not much went right for hedge fund managers in August, according to two newly released measures of industry performance. Chicago-based Hedge Fund Research Inc.
According to TABB Group in a new industry benchmark study published yesterday, "Equity Swaps and OTC Options 2008: A Buy-side Perspective," nearly two-thirds of the asset managers interviewed at buy-side firms in the U.S. trading an aggregate of $6.35 trillion dollars of assets under management (AuM) say that the continuing credit crisis is having a significant impact on their trading of over-the-counter (OTC) derivatives. As many as 57% claim the leading impact of the credit crisis is an increased focus on counterparty risk.
Hedge fund sector proves no cure-all for slowing economy
International Herald Tribune Tue, 09 Sep 2008 12:02 PM PDT
Hedge funds, which often promise to make money in all market conditions, are delivering their worst returns in a decade, a fund tracking company said.
International Herald Tribune Tue, 09 Sep 2008 12:02 PM PDT
Hedge funds, which often promise to make money in all market conditions, are delivering their worst returns in a decade, a fund tracking company said.
Russia, Venezuela: Russian Bombers in Washington's Backyard. September 10, 2008 | 1941 GMT. Russian Tu-160. Oleg Nikishin/Getty Images ...
After 10 Years Of Gains, Old Conflicts Return To Cast A Shadow On Russia's Future<http://now.eloqua.com/e/er.aspx?s=795&lid=7240&elq=60E57D5650C54BA3B0310557AFAB5D19>
A Decade After The Crisis, Russia's Banks Are Healthier, But Still Susceptible To Shock<http://now.eloqua.com/e/er.aspx?s=795&lid=7241&elq=60E57D5650C54BA3B0310557AFAB5D19>
Russia Ratings Remain On Positive Outlook As Fiscal And External Reserves Keep Growing<http://now.eloqua.com/e/er.aspx?s=795&lid=7244&elq=60E57D5650C54BA3B0310557AFAB5D19>
The International Bar Association has slammed Russian state-sponsored raids on lawyers representing HSBC and hedge ...
eFinancial News Wed, 10 Sep 2008 5:40 AM PDT
The International Bar Association has slammed Russian state-sponsored raids on lawyers representing HSBC and hedge fund Hermitage Capital Management, in what it called a deterioration of the rule of law in the country.
eFinancial News Wed, 10 Sep 2008 5:40 AM PDT
The International Bar Association has slammed Russian state-sponsored raids on lawyers representing HSBC and hedge fund Hermitage Capital Management, in what it called a deterioration of the rule of law in the country.
Big Oil Price Swings Caused by Speculators: Report
By: Reuters
Posted: 09/10/2008 2:59:31 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=mfad&story=mfad1394.html
RK Capital Hedge Funds Lost Up to 30% in August as Metals Fell
Bloomberg.com Wed, 10 Sep 2008 0:21 AM PDT
Sept. 10 (Bloomberg) -- RK Capital Management LLP, the metals hedge-fund firm co-founded by Michael Farmer , lost as much as 30 percent last month amid falling cooper and aluminum prices, according to an investor with the firm.
Bloomberg.com Wed, 10 Sep 2008 0:21 AM PDT
Sept. 10 (Bloomberg) -- RK Capital Management LLP, the metals hedge-fund firm co-founded by Michael Farmer , lost as much as 30 percent last month amid falling cooper and aluminum prices, according to an investor with the firm.
Eric Sprott Sees Net Sales in Third Quarter as Stocks Fall
Bloomberg.com Wed, 10 Sep 2008 2:18 PM PDT
Sept. 10 (Bloomberg) -- Sprott Inc., the Canadian hedge fund manager that went public in May, expects to record net sales in the third quarter even as stock prices decline, Chief Executive Officer Eric Sprott said.
Bloomberg.com Wed, 10 Sep 2008 2:18 PM PDT
Sept. 10 (Bloomberg) -- Sprott Inc., the Canadian hedge fund manager that went public in May, expects to record net sales in the third quarter even as stock prices decline, Chief Executive Officer Eric Sprott said.
Sep 10, 2008 ... 10 (Bloomberg) -- RAB Capital Plc is proposing a freeze on client redemptions at its flagship hedge fund for three years and cutting fees ...
Bail-out hands Pimco $1.7bn payday
Sep 09 2008 19:49
The Bill Gross-managed Pimco Total Return fund reaped a $1.7bn payday following the US government takeover of home loan giants Fannie Mae and Freddie Mac Read more »
Sep 09 2008 19:49
The Bill Gross-managed Pimco Total Return fund reaped a $1.7bn payday following the US government takeover of home loan giants Fannie Mae and Freddie Mac Read more »
Cohen's SAC Hires Karsch's Cowen, Opens Flagship to New Clients
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Yield Curve Corner
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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/TRCike254_N7.jpg
Five dead as powerful quake hits southern Iran
AFP via Yahoo! News Wed, 10 Sep 2008 11:50 AM PDT
A powerful earthquake jolted southern Iran on Wednesday, killing five people, and damaging scores of homes on a resort island in strategic Gulf waters.
AFP via Yahoo! News Wed, 10 Sep 2008 11:50 AM PDT
A powerful earthquake jolted southern Iran on Wednesday, killing five people, and damaging scores of homes on a resort island in strategic Gulf waters.
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Iranian Situation and Other Man Made Disasters
Investors give Iran funds cold shoulder. By Simeon Kerr in Dubai. Published: September 9 2008 21:06 | Last updated: September 9 2008 21:06 ...
Iran: Bushehr To Be Operational Soon -- Iranian Official
September 10, 2008 1357 GMT
Iran's Bushehr nuclear power plant should be operational as soon as possible, Fars news agency...
http://www.stratfor.com/sitrep/iran_bushehr_be_operational_soon_iranian_official
September 10, 2008 1357 GMT
Iran's Bushehr nuclear power plant should be operational as soon as possible, Fars news agency...
http://www.stratfor.com/sitrep/iran_bushehr_be_operational_soon_iranian_official
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Opalesque’s Corner
- Launches - Gartmore to launch European Absolute Return fund using similar strategy to its L/S hedge fund, LRG launches first real estate fund, preps second, ABR launches second multi-strat FoFs
- Opalesque Exclusive: Alpha Swiss Capital AG to be liquidated
- Opalesque Exclusive: Swiss volatility arbitrage fund returns 16.6% YTD
- Opalesque Exclusive: Qbasis Futures fund returns 14.38% (est.) in August, 54.44% YTD
- Opalesque Exclusive: Hong Kong`s PMA returns double-digit YTD numbers, macro fund +13.67%, credit fund +10.41%
- Performance - RAB Capital plans to revamp flagship hedge fund, latest in string of managers to lower fees, RAB to freeze redemptions till 2011 at flagship fund, Atticus remains silent after mid-month performance estimates leaked, end of the month figures to be provided to investors, Marco Polo`s Pan China Fund having difficult start at -15.65%, sponsor trying to stay optimistic, Snow A.M. avoids losses with bearish views, Venator fund bullish on healthcare, short euro
- Assets - Mutual fund veteran Heebner targets $5bln for first hedge fund with lure of top returns, KWK`s mortgage focused hedge fund will try to raise $100m to exploit opportunities in govt sponsored enterprise mortgage sector, Hedge fund manager PMA sees capacity at $4bln, MENA Opportunities Fund managed by EFG-Hermes asset management raises $1bn, EverKey looking to tap endowments
- Opalesque Exclusive: Celent report reflects hedge fund industry assets still poised for explosive growth from pensions and institutions, Hedge fund administrators helping managers reach the same goals via different philosophies - Part One
- Indices - August estimates for Eurekahedge Hedge Fund Index -0.9% in high volatility, Hennessee Hedge Indices show funds declined -0.72% in August as S&P 500 rose +1.22%, conservative positioning blamed for underperformance, Hedge funds sit on the side in cash balances, Hedge funds feel the pinch (video), NATIXIS licenses Hedge Fund Replication Index for European and Asian markets
- The search for a floor in convertible bonds, trading at all-time low and exposed to hedge funds
- Views - Newedge Group senior strategist says redemption pressure is a problem in the hedge fund universe, Fannie/Freddie bailout not bottom for housing market, Greenspan`s `Age of Turbulence,` Pt. 1 (video)
- Research - Cerulli report shows investors split on hedge fund management, one quarter feel long only funds and hedge funds should not be run by same manager, Study finds aging has dramatic impact on fund returns, direction of impact depends on size of fund
- Legal - Hedge fund investment advisor Victoria Investors charged with cherry-picking by SEC
- Regulatory - Doubts surface over Korean deregulation of hedge funds, worries new legislation not enough
- Fannie/Freddie Update - Freddie and Fannie were playing accounting games to meet reserve requirements, IMF says Fannie, Freddie need restructuring to limit risks, ISDA will launch protocol to facilitate credit derivatives involving Fannie/Freddie, China Pension Fund not invested in Fannie/Freddie, Markit updates indices to remove Fannie/Freddie
- Lehman Update - Lehman shares sink 45% on capital worries, Lehman`s talks with KDB have ended, Fitch might downgrade Lehman by more than 1 notch, S&P puts Lehman on watch for possible downgrade, Staff bonuses to wither as Lehman stock drops, Lehman Brothers to report expected earnings today, Why buy Lehman now (video)
- Credit Crunch Update - Wall Street ends lower on concerns over Lehman, U.K. stocks decline, Royal Bank and Barclays lead the retreat, AIG shares fall on fresh mortgage market concerns, Credit Suisse sees opportunities in market crisis, Credit Suisse downgrades European banks, Citigroup will look to Japanese markets to raise funds with $2.9bln samurai bond issue, Greenwich Associates study lauds RBC as best performing dealer during credit crunch
- Institutions - Topwer Perrin survey shows pension portfolios view risk as greater importance that return on assets
- People - Peak Partners SA reorganizes, announces the reorganization of its research and investment teams, Olivier Meyohas to head Blackstone AAM`s London office, Gideon Berger to return to NYC as Chief Risk Officer, Tremblant Capital Group hires Michael Miller as Head of Risk Management, Mirabaud hires Philippe Bruneau formerly of Rothschild to head wealth operations in France, GlobeOp names Jon Anderson global head of OTC derivatives, Stanley Yip appointed head of Baring Asset Management Asia ex-Japan Marketing, Dubai Mercantile Exchange appoints Greg Collins as CCO, Tradeweb appoints new CEO Lee Olesky, Bult appointed President
- Asia - JPMorgan outlines Indian expansion, Nikkei slips to 6-month low in morning on U.S. financial woes
- North America - Small fund players now big targets in Canada
- Environmental Investing - Stanley Fink: Preservation `a cheap option`, `Emissions-free` coal plant pilot fires up in Germany, Germany`s Environment Minister seeks to speed up carbon auction rules to spur investments
- Commodities - Read Opalesque`s free daily commodities publication, the Opalesque Commodities Briefings, RK Capital hedge funds lost up to 30% in August as metals fell, Gold, silver, platinum fall as hedge funds liquidate
- Exchanges - NYSE Euronext creates its own pan-European MTF, targets high-frequency traders, ICE investigating Monday`s hour-long outage, LSE traders wave goodbye to lost fees due to Monday`s breakdown, CME Group looks outside US for expansion
- Activist Investing - Update: Deutsche Börse clash looms, rejection of hedge fund demands sets scene for possible repeat of previous fight when funds forced out Chairman, SAC increases stake in biotech United Therapeutics as FDA reviews hypertension drug, Elliott hedge fund takes stake in Germany`s Epcos
- Events - Chinese government agencies and The Asian Financial Society sponsor first of its kind conference in the US
- News Briefs - Big plans for Barclays investment banking build-out, firm seeks bigger US, MidEast and Asia presence, Quantifi announces model for pricing CDOs using stochastic correlated recoveries, Sell side traders suffer as European institutions embrace electronic stock trading, Italy`s third largest bank to sell 66% of asset management business
- And Finally. Revenge of the Carps: Fish breaks Arkansas teen`s jaw
- Opalesque Exclusive: Alpha Swiss Capital AG to be liquidated
- Opalesque Exclusive: Swiss volatility arbitrage fund returns 16.6% YTD
- Opalesque Exclusive: Qbasis Futures fund returns 14.38% (est.) in August, 54.44% YTD
- Opalesque Exclusive: Hong Kong`s PMA returns double-digit YTD numbers, macro fund +13.67%, credit fund +10.41%
- Performance - RAB Capital plans to revamp flagship hedge fund, latest in string of managers to lower fees, RAB to freeze redemptions till 2011 at flagship fund, Atticus remains silent after mid-month performance estimates leaked, end of the month figures to be provided to investors, Marco Polo`s Pan China Fund having difficult start at -15.65%, sponsor trying to stay optimistic, Snow A.M. avoids losses with bearish views, Venator fund bullish on healthcare, short euro
- Assets - Mutual fund veteran Heebner targets $5bln for first hedge fund with lure of top returns, KWK`s mortgage focused hedge fund will try to raise $100m to exploit opportunities in govt sponsored enterprise mortgage sector, Hedge fund manager PMA sees capacity at $4bln, MENA Opportunities Fund managed by EFG-Hermes asset management raises $1bn, EverKey looking to tap endowments
- Opalesque Exclusive: Celent report reflects hedge fund industry assets still poised for explosive growth from pensions and institutions, Hedge fund administrators helping managers reach the same goals via different philosophies - Part One
- Indices - August estimates for Eurekahedge Hedge Fund Index -0.9% in high volatility, Hennessee Hedge Indices show funds declined -0.72% in August as S&P 500 rose +1.22%, conservative positioning blamed for underperformance, Hedge funds sit on the side in cash balances, Hedge funds feel the pinch (video), NATIXIS licenses Hedge Fund Replication Index for European and Asian markets
- The search for a floor in convertible bonds, trading at all-time low and exposed to hedge funds
- Views - Newedge Group senior strategist says redemption pressure is a problem in the hedge fund universe, Fannie/Freddie bailout not bottom for housing market, Greenspan`s `Age of Turbulence,` Pt. 1 (video)
- Research - Cerulli report shows investors split on hedge fund management, one quarter feel long only funds and hedge funds should not be run by same manager, Study finds aging has dramatic impact on fund returns, direction of impact depends on size of fund
- Legal - Hedge fund investment advisor Victoria Investors charged with cherry-picking by SEC
- Regulatory - Doubts surface over Korean deregulation of hedge funds, worries new legislation not enough
- Fannie/Freddie Update - Freddie and Fannie were playing accounting games to meet reserve requirements, IMF says Fannie, Freddie need restructuring to limit risks, ISDA will launch protocol to facilitate credit derivatives involving Fannie/Freddie, China Pension Fund not invested in Fannie/Freddie, Markit updates indices to remove Fannie/Freddie
- Lehman Update - Lehman shares sink 45% on capital worries, Lehman`s talks with KDB have ended, Fitch might downgrade Lehman by more than 1 notch, S&P puts Lehman on watch for possible downgrade, Staff bonuses to wither as Lehman stock drops, Lehman Brothers to report expected earnings today, Why buy Lehman now (video)
- Credit Crunch Update - Wall Street ends lower on concerns over Lehman, U.K. stocks decline, Royal Bank and Barclays lead the retreat, AIG shares fall on fresh mortgage market concerns, Credit Suisse sees opportunities in market crisis, Credit Suisse downgrades European banks, Citigroup will look to Japanese markets to raise funds with $2.9bln samurai bond issue, Greenwich Associates study lauds RBC as best performing dealer during credit crunch
- Institutions - Topwer Perrin survey shows pension portfolios view risk as greater importance that return on assets
- People - Peak Partners SA reorganizes, announces the reorganization of its research and investment teams, Olivier Meyohas to head Blackstone AAM`s London office, Gideon Berger to return to NYC as Chief Risk Officer, Tremblant Capital Group hires Michael Miller as Head of Risk Management, Mirabaud hires Philippe Bruneau formerly of Rothschild to head wealth operations in France, GlobeOp names Jon Anderson global head of OTC derivatives, Stanley Yip appointed head of Baring Asset Management Asia ex-Japan Marketing, Dubai Mercantile Exchange appoints Greg Collins as CCO, Tradeweb appoints new CEO Lee Olesky, Bult appointed President
- Asia - JPMorgan outlines Indian expansion, Nikkei slips to 6-month low in morning on U.S. financial woes
- North America - Small fund players now big targets in Canada
- Environmental Investing - Stanley Fink: Preservation `a cheap option`, `Emissions-free` coal plant pilot fires up in Germany, Germany`s Environment Minister seeks to speed up carbon auction rules to spur investments
- Commodities - Read Opalesque`s free daily commodities publication, the Opalesque Commodities Briefings, RK Capital hedge funds lost up to 30% in August as metals fell, Gold, silver, platinum fall as hedge funds liquidate
- Exchanges - NYSE Euronext creates its own pan-European MTF, targets high-frequency traders, ICE investigating Monday`s hour-long outage, LSE traders wave goodbye to lost fees due to Monday`s breakdown, CME Group looks outside US for expansion
- Activist Investing - Update: Deutsche Börse clash looms, rejection of hedge fund demands sets scene for possible repeat of previous fight when funds forced out Chairman, SAC increases stake in biotech United Therapeutics as FDA reviews hypertension drug, Elliott hedge fund takes stake in Germany`s Epcos
- Events - Chinese government agencies and The Asian Financial Society sponsor first of its kind conference in the US
- News Briefs - Big plans for Barclays investment banking build-out, firm seeks bigger US, MidEast and Asia presence, Quantifi announces model for pricing CDOs using stochastic correlated recoveries, Sell side traders suffer as European institutions embrace electronic stock trading, Italy`s third largest bank to sell 66% of asset management business
- And Finally. Revenge of the Carps: Fish breaks Arkansas teen`s jaw
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Misc. Items of Interest
Physiology of Fear
Scientists who study fear—of bosses, rivals, risk, or failure—are developing techniques to control it. Read
Scientists who study fear—of bosses, rivals, risk, or failure—are developing techniques to control it. Read
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Funnies, Facts, Quotes, etc….
Pity this Billionaire
The Telegraph - Wednesday September 10, 08:26 BST
The Telegraph - Wednesday September 10, 08:26 BST
torrid TOR-uhd, adjective:
1. Violenty hot; drying or scorching with heat; burning; parching; as, "torrid heat."
2. Characterized by intense emotion; as, "a torrid love affair."
3. Emotionally charged and vigorously energetic; as, "a torrid dance."
2. Characterized by intense emotion; as, "a torrid love affair."
3. Emotionally charged and vigorously energetic; as, "a torrid dance."
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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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