Main News

THE STRIKING
PRICE DAILY
Politics as Painful as Market Volatility Risk metrics are seizing up as Washington dallies about.
http://online.barrons.com/article/SB122272844237487983.html?mod=djemBF

 

Analysis: Bailout legislation needs to address systemic risks
As part of the $700 billion bailout plan that may see another congressional vote this week, the U.S. Treasury and the Federal Reserve need an overreaching strategic plan to address the credit crisis, including mechanisms to deal with systemic risks arising from turmoil faced by many financial institutions. If the legislation passes in its current form, authorities will in effect have two outlets, both designed for containing systemic risk: one for regulated banks and one for other financial institutions. Financial Times (29 Sep.)

 

PRESS RELEASE: Fitch Monitoring Fund Of Hedge Fund Liquidity
Nasdaq Tue, 30 Sep 2008 7:31 AM PDT
Fitch Ratings-London/Paris-30 September 2008: Fitch Ratings has heightened its monitoring of liquidity management at fund of hedge fund (FoHF) managers.

 

Hedge funds face worst year since 1990
Financial Times - London,England,UK
By Deborah Brewster and Anuj Gangahar in New York Hedge funds on Tuesday closed out one of their worst-ever quarters as US managers braced for an extension ...

 

Canada Banks Not Immune to Crisis Fallout
By: Reuters
Posted: 09/30/2008 1:35:52 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3606.html

 

Herd Mentality Rules in Financial Crisis
By: Reuters
Posted: 09/30/2008 1:12:19 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=dail&story=dail15298.html

 

Bank consolidations not enough to prevent M&A decline
The credit crisis triggered an unprecedented amount of consolidation in the banking industry, but global mergers and acquisitions dropped 24% during the first nine months of 2008. During the third quarter, the value of bank deals exceeded $132 billion and accounted for half of the global banking M&A volume this year. Brett Olsher, Deutsche Bank's global co-head of M&A, said he expects bank consolidations to continue to drive M&A volumes for the remainder of this year and into next year. Financial Times (29 Sep.)

 

Failed Bailout Needs Leadership 'Dream Team'. Last update: 3:24 p.m. EDT Sept. 30, 2008. CHESTNUT HILL, Mass., Sept 30, 2008 /PRNewswire-USNewswire via ...
www.marketwatch.com/news/story/failed-bailout-needs-leadership-dream/

 

$50 Billion in 'Long-Only Funds' Flees Commodities Markets
By: Reuters
Posted: 09/29/2008 5:40:12 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15293.html

 

Hedge funds face loss of investors
Sep 29 2008 23:33
Hedge funds are braced for massive withdrawals by wealthy clients as the sector's worst year prompts a flight to the safety of cash, according to investors and managers Read more »

 

Hedge funds brace for redemption wave, cash high
Reuters - USA
By Jeffrey Hodgson HONG KONG (Reuters) - Hedge fund managers are bracing for a massive wave of redemption requests with another quarter of miserable ...

 

Fund Managers Rattled as Rescue Plan's Rejection Shakes Markets
Bloomberg - USA
Yesterday's plunge may feed on itself as investors decide to pull money from hedge funds, and hedge funds sell securities to raise cash, said Stewart Massey ...

 

The Political Nature of the Economic Crisis. September 30, 2008 | 2115 GMT. Graphic for Geopolitical Intelligence Report. By George Friedman ...

 

UPDATE 1-Northwater trusts may suffer from alleged fraud - 9 hours ago

 

U.S. hedge fund Paulson bets big against UK banks<http://www.hedgefund-index.com/newstoday.asp>
Source: Reuters
John Paulson, a U.S. hedge fund manager who gained a superstar reputation with a big bet against the U.S. housing market, was shown holding a $1.9 billion bet against United Kingdom banks as short sellers were forced to disclose their positions. More...<http://www.hedgefund-index.com/newstoday.asp>

 

Wall Street Bonuses May Fall 50%
09/29/2008 6:04:12 PM ET
NEW YORK (Reuters)—The drop in Wall Street's bonuses "could rival" the 50% fall seen in 2003, with the current market crisis cutting the total amount paid by banks and brokerages to $16 billion, the state comptroller said on Monday [Sept. 29].

 

Man Group suffers $5bn asset decline
Man Group, the world's biggest listed hedge fund, on Monday said it had suffered a $5bn (?3.5bn) decline in funds under management amid falling asset values against the backdrop of the global financial turmoil.  (The Daily Telegraph)
http://mail.efnmail.co.uk/r/401483/MTk4MTI1OjE4ODE3/

 

Reserve Primary fund to liquidate $20bn in assets
Reserve Management Corp pledged to liquidate the assets of The Primary Fund and distribute $20bn (?13.9bn) to all its investors in proportion to the number of shares they held at the close of business on September 15.  (The Wall Street Journal)
http://mail.efnmail.co.uk/r/401484/MTk4MTI1OjE4ODE3/

 

A Hedge Fund Lease as Harbinger and Hope
The New York Observer Mon, 29 Sep 2008 8:11 AM PDT
Proving that hedge funds may indeed be the new investment banks (as Tom Wolfe told The Observer earlier this month ), new hedge fund Dabroes Management has signed for 12,202 square feet on the 24th floor of 1095 Avenue of the Americas, the former Equity Office Properties tower that's undergone $275 million in recent renovations, including a green curtainwall. The rent's $135 a square ...

 

_________________________________________________________________________

Yield Curve Corner

 

Having learnt the harsh lessons of the past, today's policymakers ...
Times Online - UK
A few years ago, before he became Chairman of the Federal Reserve, the US central bank, Ben Bernanke gave a speech honouring the 90th birthday of the great ...

 

Chadwick: Canonize Warren Buffett
CNBC - Englewood Cliffs,USA
Last Friday, behind closed doors, Treasury Secretary Hank Paulsen and Federal Reserve Chairman, Ben Bernanke, gave Congressional leaders the Armageddon ...

 

_________________________________________________________________________

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/TRClaura274_G12.jpg

_________________________________________________________________________

Iranian Situation and Other Man Made Disasters

 

Why are the Revolutionary Guards running Iran's ICBM program?
UPI Tue, 30 Sep 2008 8:05 AM PDT
By ARIEL COHEN WASHINGTON, Sept. 30 (UPI) -- It is highly significant that Iran's missile program is under the control of the Iranian Revolutionary Guard -- Pasdaran -- the most loyal element of the regime, which combines internal secret police and external intelligence and shock troop functions. It is not controlled by civilians; not even by the regular military.

"New realities in the Strait of Hormuz,"

 

"The Secret War with Iran" by Ronen Bergman, dealing

with the shadow war between Israel and Iran, by Steven Aftergood and the

Federation of American Scientists. Also at:

 

examples of the heavy metal scene in Tehran at:

http://www.memritv.org/clip/en/1855.htm. and

http://www.memritv.org/  clip/en/1537.htm.

 

"Iranian academic Mehdi Zakerian, who was due to travel to the US, has

been detained in Tehran.

 

exclusive interview with Ahmadinejad. Available at:

 

Part 1 of an interview with President Mahmoud Ahmadinejad by Amy Goodman

and Juan Gonzalez is available at

http://www.democracynow.org/2008/9/25/iranian_president_mahmoud_ahmadinejad_on_the

Part 2 will appear on the same website.

 

"Emirates Look to the West for Prestige." Also at:

 

The latest issue of Middle East Report (http://www.merip.org/mer/mer248/mer248.html)

includes several articles related to the Gulf region: "Separating Image

from Substance in Saudi Arabia," by Clarisa Bencomo and Christoph Wilcke;

"Claiming Jewish Communal Property in Iraq," by Michael R. Fischbach; "The

UAE's Space Race: Sheikhs and Starchitects Envision the Future," by Ahmed

Kanna with Arang Keshavarzian; "The Great Ports Panic of 2006," by

Benjamin Smith."

 

_________________________________________________________________________

Opalesque’s Corner

 

- Opalesque Exclusive:  As hedge funds approach an attrition rate of -7.0% for the full year, the importance of pre-launch planning for possible future periods of distress increases - Part Two
- Redemptions - Hedge funds face loss of investors, Market drop pressures hedge fund managers, Wall Street braces for hedge fund deadline today, Hedge funds brace for investors to cash out, Redemption requests force the closure of Forsyth sub funds, will restructure FoHFs into consolidated multi strategy FoHFs
- Performance - Opalesque Exclusive:  diversified managed futures product Futures Select braves current crisis gaining 2.22% in August (YTD + 7.50% est.), Asia hedge funds among worst performers, close at faster rate, Hedge funds may see key employees walk due to negative returns
- Update: RAB Capital investors approve restructuring, new 3-year lock-up
- Derivatives - Asset managers face backlash from investors wary of derivatives, see `a return to simplicity in products`, Managers rush to shift derivatives positions to a greater number of counterparties
- Commodities - 20 to 25% of assets could be withdrawn from commodity or resource hedge funds by year-end, Oil drops nearly 10% as House rejects bailout, Manager Profile: Charles Wright, Fall River Capital, does not believe in efficient markets
- Rescue Plan Update - US House of Representatives rejects bail-out bill, Senate may try to revive bank-rescue bill as early as tomorrow, Morning press releases from Paulson and Bernanke expected plan to pass, Markets in renewed chaos, No celebration for financial lobbyists
- Views - BlackRock CEO: Congress `playing with fire`, Better plan urged as bill might have buried problems and prolonged price uncertainty, Tokyo HF advisor McKinnon thinks House was right to take time to consider bailout, Economists: U.S. heading for deeper economic slump, with or without bailout, Greenwich survey:  More than 60% of global institutional investors feel US bailout would restore market order
- Credit Crisis Update - `Meltdown Monday`, Regional US banks take a battering, Fed, ECB, other central banks pump cash into system, Russia stock exchanges suspended, Bank of Japan pumps another 2trl yen in money markets, Citi rescues Wachovia in $2.2bln takeover, Mitsubishi UFJ Financial Group agrees to invest $9bln in Morgan Stanley, Goldman, Merrill collect as much as $37bln after Fed`s AIG bailout loans, UK nationalises Bradford & Bingley, New York-based funds are abusing `secrecy jurisdictions`, a major factor in crisis, Report: Turmoil offers rich pickings for boutiques
- Lehman Update - Lehman`s Neuberger arm to be sold for $2.15bln to Bain Capital and Hellman & Friedman, Lehman staff unhappy Barclays did not keep bank intact, Germany's KfW Bank fires two managers over last minute transfer of funds to Lehman
- Short Selling Regulation - Indonesia`s bourse bans short selling for October, Update: South Korea bans short-selling on local stocks and listed firms, Some options market makers to stop trading names on SEC list, HF advisor Jacob Schmidt says short-selling ban may extend beyond banks (video), Ban on short selling of financials appears to have chased liquidity out of the market, Funds seek end to ban on short selling
- Regulatory - Administrative cease-and-desist order issued to Victoire Finance Capital for covering shorts, EU executive to propose tougher bank rules to improve underwriting standards
- Legal - Hedge fund asset raiser Burt Kozloff gets 15 months for tax evasion, Fannie and Freddie subpoenaed by federal prosecutors
- Institutions - New Jersey State Investment Council to commit $250m to trio of PE and hedge funds
- Europe - Investors flee European lenders, Dexia latest in bailouts, gets Eur6.4bln boost from Belgium, France, Luxembourg, Iceland takes over Glitnir bank, Irish banks suffer biggest one-day fall in 20 years, Ping An may scrap proposed asset management joint venture with Fortis, UK funds under management up 3% from July to August, but -7% from August 2007
- Middle East - Kuwait boosts liquidity to shore up confidence in face of deepening global financial crisis
- Asia - India stocks fall on likely US hedge funds redemption, Bharatbook.com added a new report on `Hedge Funds in India`, Deutsche Borse gets approval for representative office in China, to be headed by Jianhong Wu
- People - Broadgate hires hedge fund expert Jamie Murray and establishes alternatives division, Nick Davies joins Mercer`s investment consulting business as senior consultant, SocGen names new asset management CEO to replace Alain Clot
- Environmental Investing - First U.S. carbon-dioxide permits sell for $3.07/Ton, 59 bidders took part in sale, China`s first emission trading exchange established, Bulgaria launches CO2 registry to kick off trade
- Forex - Euro falls against dollar, yen drops
- Niche Investing - Fine wine as a dollar and inflation hedge
- Read Opalesque`s new free daily Real Estate publication, the Opalesque Real Estate Briefing
- Events - Opalesque Exclusive: Meet the Canadian managers - Scotia Capital organises a breakfast in London on 21st October, a forum in Zurich on 22nd October and a luncheon in Geneva on 23rd October
- News Briefs - New hedge fund Dabroes Management signs for 12,200 sq ft in New York Office, Actuarials Holdings unveils `safe` derivative called the Clipper, Legg Mason faces slide on financials bets and Miller tones down bold style, Irish Stock Exchange to expand range of ETF offerings for investors to track US equity markets, gold, oil, water and alternative energy, Close Brothers` profits plunge, UBS may regain investor trust even as crisis deepens
- And Finally. Important things first: Arnold Schwarzenegger vetoes ban on driving with lapdogs
- Logon: http://www.opalesque.com/index.php?act=archive

_________________________________________________________________________

Misc. Items of Interest

 

Ideal of the Scoop
BY SETH LIPSKY
Following are excerpts of remarks by the Editor of the Sun, Seth Lipsky, to the newspaper's staff:

It is my duty to report today that Ira Stoll and I and our partners have concluded that the Sun will cease publication. Our last number will be the issue dated September 30, the first day of Rosh Hashanah. I want you to know that Ira and I, and our partners, explored every possible way to avoid having to cease publication.

We have spoken with every individual who seemed to be a prospective partner, and everywhere we were received with courtesy and respect. I tend to be an optimist and held out hope for a favorable outcome as late as mid-afternoon today. But among other problems...

 

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

 

fettle FET-l, noun:

A state or condition of fitness or order; state of mind; spirits -- often used in the phrase "in fine fettle."

 

Posted by Bess Levin, Sep 30, 2008, 11:59am

1. "Speculation that President Sarkozy's meeting with banking officials today will result in a guarantee of the French bank debt similar to the move in Ireland this morning."

2. "Whispers of a coordinated rate cut by the Swiss, ECB, Canada and US by noon tomorrow."

_________________________________________________________________________

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.