Main News

 

Hedge fund group wants looser short-selling rules
USA Today Mon, 22 Sep 2008 9:22 PM PDT
Arguing that the Securities and Exchange Commission's emergency restrictions on short-sellers go too far, the nation's largest hedge fund association plans to press for modifications this week.The Securities and Exchange Commission has taken the dramatic step of temporarily banning the routine practice of betting against company stocks.

 

Watching the Social Amplification of Risk Live

 

Is The Hedge Fund Era Over?
Boutique-founder Charles Montanaro predicts a dramatic shift in asset allocation as investors prepare for the next bull market, with the manager poised to benefit from the demise of the hedge fund.

 

Analysis: Short Sellers Have Been the Villain for 400 Years
By: Reuters
Posted: 09/23/2008 3:14:18 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3599.html

 

Monday , 22 Sep 2008
Financial market convulsions have accelerated the overall downturn in commodity sectors and expectations of global economic slowdown, possible recession in the United States, Britain and Europe have further undermined confidence.

 

Crisis to spur big Asia hedge fund shake-out
Reuters - USA
By Jeffrey Hodgson and Saeed Azhar - Analysis HONG KONG/SINGAPORE (Reuters) - Asia's hedge fund industry, one of the world's worst performers even before ...

 

Merger arbitragers are on the run. That is presenting ripe opportunities for investors itching to play the M&A game.
http://online.wsj.com/article/SB122220196961668311.html?mod=djemheard

 

By KAJA WHITEHOUSE

As the Securities and Exchange Commission continues its assault on short sellers, hedge funds are discussing legal action to challenge Chairman Chris Cox's recent moves - just as funds in the UK are considering lawsuits against their government...full story

 

Regulators seek central counterparty in credit derivatives
Regulators are turning up the pressure for the development of a central counterparty in the $62 trillion credit-derivatives market as the market struggles to absorb Lehman Brothers' recent default. A central counterparty is expected to boost the cost of trading in the market as dealers expect that regulators will impose higher margins on trades to fund guarantees from the counterparty. Financial Times (22 Sep.)

 

U.S. Economic Woes Still Have Global Ramifications, But Less So Than Before<http://now.eloqua.com/e/er.aspx?s=795&lid=7723&elq=EB1B4BE5B5384C4B88108B82387BB52D>

 

A Run on the Bankers
Is Chris Hohn a Threat to US National Security?
Day of the 'Locust': Hedge Fund Star Goes to Court

 

 

Blame Fannie Mae and Congress
Wall Street Journal - USA
Nevertheless, the vast accumulation of toxic mortgage debt that poisoned the global financial system was driven by the aggressive buying of subprime and ...

 

Kazakhstan: Joint Military Exercises Held With NATO
September 23, 2008 1534 GMT
Kazakhstan and NATO held joint military exercises Sept. 23 outside Almaty, as part of...
http://www.stratfor.com/sitrep/20080923_kazakhstan_joint_military_exercises_held_nato

 

Huge Reserves, Emerging Market 'Challengers' and Other Forces Are Changing Global Finance
Rapidly developing economies have become drivers of change -- and sometimes disruption -- in global financial markets. That has important implications for companies in the U.S. and Europe as new players emerge, including sovereign wealth funds, state-controlled entities and acquisition-minded corporations. According to experts at Wharton and The Boston Consulting Group, these entities will increasingly look to buy assets beyond their borders, including controlling stakes in foreign companies.
http://knowledge.wharton.upenn.edu/article/2055.cfm

 

FBI investigating Lehman, AIG for fraud

Two law enforcement officials said the FBI is looking at potential fraud by Fannie Mae and Freddie Mac, Lehman Brothers Holdings Inc.  and American International Group. 

 

As Kohlberg Kravis Roberts finalizes its initial public offering, it is being forced to disclose just how bad the buyout business has become. One dud: Canadian door manufacturer Masonite International.
http://online.wsj.com/article/SB122219681530268079.html?mod=djemheard

 

Freddie and Fannie bank losses grow
Sep 23 2008 00:08
US regulators have underestimated potential bank losses on preferred stock issued by Fannie Mae and Freddie Mac, the American Bankers Association said Read more »

 

Group of Seven rejects global bailout. G-7 officials spurned Washington's petition that they enact large-scale financial bailouts - similar to the Treasury's proposed $700B safety net - insisting their banks are not exposed to the same level of reckless lending that put U.S. banks in the red and America at risk of a deep recession. Some European central banks did offer increased liquidity for stressed financial markets, as did Japan, but officials showed no appetite for mimicking the U.S. proposal.

 

by Jenny Strasberg

The Wall Street Journal Sep. 20 2008

 

The End of the Chaos Trade by Felix Salmon

 

A Year of Heavy Losses

Make sure you click on the chart to the left.

 

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Yield Curve Corner

 

Doubts on Rescue Plan Spur Fall
Wall Street Journal - USA
By TOM LAURICELLA, LIZ RAPPAPORT and JOANNA SLATER Volatility spread across financial markets on Monday -- undermining the dollar and contributing to the ...

 

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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/TRChagupit267_GJ.jpg

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Iranian Situation and Other Man Made Disasters

 

Russia against six-power meeting on Iran: foreign ministry
AFP via Yahoo! News Tue, 23 Sep 2008 12:27 PM PDT
Russia is against a planned meeting of the six powers negotiating on Iran's nuclear programme, the foreign ministry said in a statement that referred to US attempts to "punish" Moscow.

Iran's president returns to UN General Assembly
AP via Yahoo! News Tue, 23 Sep 2008 4:10 AM PDT
Iran's president, whose appearance at the U.N. General Assembly last year sparked thousands of protesters in the streets and an American walkout during his speech, returns to the United Nations on Tuesday amid heightened concerns over his country's nuclear ambitions.

 

Iran: Another Sign of the Power Struggle in Tehran
September 22, 2008 2221 GMT
Iran's central bank chief was dismissed Sept. 21 in another move illustrating the internal power struggle in Tehran.
http://www.stratfor.com/analysis/20080922_iran_another_sign_power_struggle_tehran

 

Iran: Iran To Send Natural Gas To Armenia
September 23, 2008 1533 GMT
Iran plans to pump 3 million cubic meters of natural gas to Armenia over the winter, Iran's...
http://www.stratfor.com/sitrep/20080923_iran_iran_send_natural_gas_armenia

 

Iran: Commerce Minister Goes To China
September 23, 2008 1525 GMT
Iranian Commerce Minister Massoud Mirkazemi on Sept. 23 is scheduled to go to Beijing, where he...
http://www.stratfor.com/sitrep/20080923_iran_commerce_minister_goes_china

 

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Opalesque’s Corner

 

- Opalesque Exclusive:  Marquee Capital Entertainment Memorabilia Fund expects 2008 value increase to be close to 2007`s +30%
- Fund Launches - Ex Merrill Trader Denny Wong plans volatility hedge fund for early 2009, Investcorp launches $1 bln real estate debt fund to take advantage of turmoil in US credit markets, Duet Asset Management expands into Middle East and Asia, launches distressed funds in Europe and Japan
- Legg Mason stock falls as firm denies rumors it is going private
- Prime brokerage industry may change as managers rethink exposure to toppling banking partners and banks think twice about lending against complex securities
- Four hedge fund managers said to be involved in last week`s market turmoil, linked to the short selling of Lehman and HBOS
- Manager Profile:  Thomas Steyer of $33bln Farallon Capital Management
- Era of the hedge fund is over, says Montanaro, long only managers to benefit
- Comment: Hedge funds are scapegoats as long-only managers panic
- With only 1 in 10 above high water mark, hedge fund managers face staff defections as bonuses look shaky
- Institutions - Finnish Pension thinks of hedge funds as risk/return profile in between bonds and equities, West Midlands allocates 25% to alternatives
- Indices - Nordic hedge funds had a bad July, with index at -1.13% during month and -2.60 YTD
- Funds look to circumvent shorting ban
- Opalesque Exclusive: German regulator BaFin temporarily bans short selling of eleven financial stocks until 31 December
- Opalesque Exclusive: Austrian regulator FMA takes actions to prevent abusive short selling
- Opalesque Exclusive: French regulator bans short-selling on 15 financials
- Opalesque Exclusive: Merkel criticizes London and Washington, advocates market transparency
- Regulatory - SEC protects hedge fund GLG from shorting, NYSE, Nasdaq add 96 stocks to SEC`s short-sale ban, Diamond Hill Investment Group voluntarily opts out of covered securities list, CBOE issues statement against short selling restrictions, Australian regulator bans short selling, New York State will regulate part of $62trn credit default swap market, Japan FSA reinforce uptick rule requirement, will monitor market with heightened alert level, EU`s McCreevy says hedge funds should be monitored closely, but no need to formally propose regulation, Cox `asleep at switch` as Paulson, Bernanke encroach, SEC Chairman Cox to testify before Senate on `market turmoil` Tuesday at 9:30 am EST
- Legal - Angry investors are suing the Reserve Fund for `breaking the buck`, AIG for pension losses, Merrill Lynch for its Bank of America deal, legal rulings have made it harder to make shareholder claims
- Credit Crunch - Money market funds suffer huge outflows, to the tune of $197bln in one week, US regulators underestimated potential bank losses on preferred Freddie and Fannie stock, impact on community banks far greater than first thought, Deutsche Bank resolves on capital increase to raise EUR2bln, Is the crunch going corporate?
- AIG - AIG CEO expects `for sale` list next week
- Lehman - Nomura grabs Lehman Asia unit, Europe next, Hedge funds could wait months to recover Lehman assets, Fury at U.S. Lehman Brothers` staff who could net GBP1.4bln in bonuses, GBP4.4bln transferred before bankruptcy, UK wants the money returned, Barclays will steer clear of Lehman ETNs, Lehman bondholders could lose $110bln, Norwegian government pension fund hurt by Lehman collapse, increased holdings ninefold in August 2008, Seven listed Chinese banks report $721m in Lehman exposure, Northern Trust confirms exposure to Lehman, held 7m shares
- M&A - Morgan Stanley signs letter of intent pursuing strategic alliance with Mitsubishi UFJ Financial Group, Buffett injects $1bln in Constellation battle
- People - Co Founder Michael Adam leaves Aspect Capital, second senior departure in 6 months, MFC Global appoints former Pardus Capital principal as analyst and member of high yield and strategic bonds team, Eklektikos Capital Management announces two senior hires, Steven Case joins Mercer`s investment consulting business as senior consultant, Head of Citi Wealth Management unit Krawcheck to leave
- Exchanges - Nasdaq plans listings venue in London, takes aim at LSE listings
- Europe - UK`s largest trade union calls on hedge funds to `own up about secretive practices`, Survey shows Swiss trust in UBS eroding
- Asia - Crisis to spur big Asia hedge fund shake-out, The Citco Group of Companies to create 400 new jobs in Singapore, Australia stocks fall on U.S. bailout uncertainty
- Commodities - Read Opalesque`s free daily commodities publication, the Opalesque Commodities Briefings, Oil price jumps $25 in a day for the first time ever, CFTC issues statement regarding trading in crude oil
- IMFC Global Diversified Fund wins 2008 Canadian Hedge Fund Award
- Activist News - UK hedge fund TCI takes on Vedanta over rejig
- News Briefs - Microsoft to buy back $40 billion of stock, McCain says Cuomo should be considered as SEC Chief, 85,000 jobs hang in the balance, 10,000 jobs were lost in August alone, Some Wall Street workers turn to religion as Wall Street churches cite increased attendance
- ...And Finally: Aussie `free hugs guy` to donate kidney to stranger
- 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….

 

scion SY-uhn, noun:

1. A detached shoot or twig of a plant used for grafting.
2. Hence, a descendant; an heir.

 

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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.