Archive: 10/09/2008
Main News
BBC News - 43 minutes ago
The US treasury secretary has warned some banks will still fail despite the $700bn government rescue package to shore up the financial system.
Ted Spread Widens as Bank Fears Run Deep
By: Reuters
Posted: 10/08/2008 5:06:14 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15315.html
By: Reuters
Posted: 10/08/2008 5:06:14 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15315.html
UK government unveils £50 billion bank recapitalisation plan
The UK government this morning announced a jumbo rescue package to recapitalise the country’s ailing banking sector.
The UK government this morning announced a jumbo rescue package to recapitalise the country’s ailing banking sector.
U.S. Hedge Funds Losses Balloon
By: Reuters
Posted: 10/08/2008 4:44:30 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=indx&story=indx1307.html
By: Reuters
Posted: 10/08/2008 4:44:30 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=indx&story=indx1307.html
Ukraine: Bails Out Major Bank
October 8, 2008 1529 GMT
The National Bank of Ukraine extended a low cost credit to one of the country’s banks,...
http://www.stratfor.com/sitrep/20081008_ukraine_bails_out_major_bank
October 8, 2008 1529 GMT
The National Bank of Ukraine extended a low cost credit to one of the country’s banks,...
http://www.stratfor.com/sitrep/20081008_ukraine_bails_out_major_bank
Brutal September for Hedge Funds
Wall Street Journal - USA
By DONNA KARDOS September turned out to be the worst month for hedge funds in a decade, reflecting market turmoil and a ban on short selling. ...
Wall Street Journal - USA
By DONNA KARDOS September turned out to be the worst month for hedge funds in a decade, reflecting market turmoil and a ban on short selling. ...
Funds of Funds- The elderly are vibrant - as long as they grow up first: Researchers find that being small can be good and being old can be good. But being small and old? Not so good.
Alpha Beta Separation - a separation of church and state: Separating secular beta from spiritual alpha may be the best way to organize portfolios too.
130/30 funds: So Much For $2 Trillion By 2010 by Christopher Holt
Awaiting the Lehman CDS Auction by Felix Salmon
Roubini Was Right by Felix Salmon
Oct 8, 2008 ... Such is the irony of modern capitalism, with more government intervention, not less, being needed to keep the ship above water as the
IMF raises estimate of losses from crisis to $1.4 trillion
In its quarterly report on global capital markets, the International Monetary Fund increased its estimate of losses from the financial crisis to $1.4 trillion, up from $945 billion in April and $1.3 trillion last month. The IMF also estimated that major global banks will need approximately $675 billion in capital in coming years. "The combination of mounting losses, falling asset prices and a deepening economic downturn has caused serious doubts about the viability of a widening swath of the financial system," the IMF said in its assessment. International Herald Tribune/Reuters (07 Oct.)
In its quarterly report on global capital markets, the International Monetary Fund increased its estimate of losses from the financial crisis to $1.4 trillion, up from $945 billion in April and $1.3 trillion last month. The IMF also estimated that major global banks will need approximately $675 billion in capital in coming years. "The combination of mounting losses, falling asset prices and a deepening economic downturn has caused serious doubts about the viability of a widening swath of the financial system," the IMF said in its assessment. International Herald Tribune/Reuters (07 Oct.)
Japan cancels government-bond auction
Because of rising yields, Japan canceled an auction Wednesday for the 10-year inflation-linked government bond, the first time the Ministry of Finance has canceled such an auction. The bond has a yield of 2.25%, versus the 1.4% of conventional bonds. That makes the break-even inflation rate minus 85, compared with last week's minus 32, foreboding increased government-funding costs. The Ministry of Finance will have to find a way to raise the needed $3 billion. Financial Times (07 Oct.)
Because of rising yields, Japan canceled an auction Wednesday for the 10-year inflation-linked government bond, the first time the Ministry of Finance has canceled such an auction. The bond has a yield of 2.25%, versus the 1.4% of conventional bonds. That makes the break-even inflation rate minus 85, compared with last week's minus 32, foreboding increased government-funding costs. The Ministry of Finance will have to find a way to raise the needed $3 billion. Financial Times (07 Oct.)
Wed, 08 Oct 2008, 06:02
Hedgeweek
VW passes Toyota to top spot
Oct 07 2008 19:09
Volkswagen has overtaken Toyota as the world's largest carmaker by market capitalisation after an extraordinary scramble by hedge funds to cover positions betting on a share price fall in the German company Read more »
Oct 07 2008 19:09
Volkswagen has overtaken Toyota as the world's largest carmaker by market capitalisation after an extraordinary scramble by hedge funds to cover positions betting on a share price fall in the German company Read more »
Nouriel Roubini's Global EconoMonitorNouriel RoubiniOctober 8, 2008
Nouriel Roubini's Global EconoMonitorNouriel RoubiniOctober 8, 2008
Oct 7, 2008 ... [We're Not Headed for a Depression] David Gothard. First of all, the magnitude of this financial disturbance should be placed in perspective ...
Tycoon Pickens Sues Lehman over Collateral
By: Reuters
Posted: 10/08/2008 1:59:07 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15314.html
By: Reuters
Posted: 10/08/2008 1:59:07 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15314.html
Top hedge funds reopen to new investors<http://www.hedgefund-index.com/newstoday.asp>
Source: Reuters
The credit crisis is providing a rare chance for investors with sufficient cash to get into previously inaccessible hedge funds, according to Swiss-based Partners Group's head of fund manager selection Roberto Cagnati. More...<http://www.hedgefund-index.com/newstoday.asp>
Source: Reuters
The credit crisis is providing a rare chance for investors with sufficient cash to get into previously inaccessible hedge funds, according to Swiss-based Partners Group's head of fund manager selection Roberto Cagnati. More...<http://www.hedgefund-index.com/newstoday.asp>
While an overwhelming 91% of respondents believe there are even more write-downs coming from elite banks, survey respondents suggest there is a silver lining in the midst of this spiraling economic crisis.
Oct 8, 2008 ... With state-sponsored terrorism back on the horizon, the time has come to recognize the changing face of terrorism beyond the post-9/11 world ...
Afghanistan: The Taliban's Break With Al Qaeda
October 7, 2008 1624 GMT
Saudi Arabia stands to benefit from the Afghan Taliban's decision to cut ties with al Qaeda.
http://www.stratfor.com/analysis/20081006_afghanistan_talibans_break_al_qaeda
October 7, 2008 1624 GMT
Saudi Arabia stands to benefit from the Afghan Taliban's decision to cut ties with al Qaeda.
http://www.stratfor.com/analysis/20081006_afghanistan_talibans_break_al_qaeda
Tosca seeks to restructure largest fund
Financial Times - London,England,UK
By James Mackintosh Toscafund Asset Management is asking investors if it should restructure its largest hedge fund, after the $3.5bn (£2bn) Tosca Fund fell ...
Financial Times - London,England,UK
By James Mackintosh Toscafund Asset Management is asking investors if it should restructure its largest hedge fund, after the $3.5bn (£2bn) Tosca Fund fell ...
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Yield Curve Corner
Are Paulson and Bernanke Running Out of Options?
TIME - USA
The indefatigable Paulson, along with Federal Reserve Chairman Ben Bernanke, this week unveiled a slew of new initiatives to try and restore confidence in ...
TIME - USA
The indefatigable Paulson, along with Federal Reserve Chairman Ben Bernanke, this week unveiled a slew of new initiatives to try and restore confidence in ...
_________________________________________________________________________
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/TRCnorbert282_G11.jpg
_________________________________________________________________________
Iranian Situation and Other Man Made Disasters
Six powers to discuss Iran in a few days: US
AFP via Yahoo! News Wed, 08 Oct 2008 11:29 AM PDT
The six powers trying to scale back Iran's nuclear ambitions will consult soon via telephone about the "next steps" to take at the United Nations, a State Department official said Wednesday.
AFP via Yahoo! News Wed, 08 Oct 2008 11:29 AM PDT
The six powers trying to scale back Iran's nuclear ambitions will consult soon via telephone about the "next steps" to take at the United Nations, a State Department official said Wednesday.
_________________________________________________________________________
Opalesque’s Corner
- Opalesque Exclusive: Some investors are willing to see longer lockups against lower fees, funds of hedge funds become casualties in overcrowded space
- Launches - Frontier Capital launches global FoHFs, WERU A. M. launches Japan credit fund
- Closures - Update: Close Man hedge fund to shut amid fall to GBP4m, redemptions suspended, Hedge fund closures to soar (video)
- Assets - Shares in Brevan Howard listed macro fund sink to 13% discount to NAV, Invesco Multi-Strategy capability grows to $100m, Hedge Fund seeder SkyBridge held a first close in July, next in December
- Investors - Hedge investors ask for longer lock-ups to avoid closures, Survey finds 15% sophisticated investors see potential for strong returns from hedge funds, UBS Equity risk index shows investor tolerance at historic lows, CBOE`s fear gauge (VIX), S&P 500 index options hit records, LGT Capital recommends Indian investors to invest in domestics
- Opalesque Exclusive: While the EurekaHedge Hedge Fund Index is down 3% (est.) in September (-6.21% YTD), Titan Capital Volatility US fund is up 18% (20.86% YTD)
- Indices - BarclayHedge Fund Index (est.) -5.96% for September, -11.31% YTD, Parker Index down -0.73% for August, top performer is Trigon FX Program (+16.55%), Hedge funds losses balloon in September, average hedge fund down 9.41% YTD (-4.68% in September, est.): HFR, Hedge funds outperform equity market but not bonds
- Opalesque Exclusive: Agricultural value investor Craton Capital sees opportunity amidst sell off
- Commodities - Red Kite`s metals hedge fund lost 30% in August - source, Commodity managers say investors are cashing out profits to cover shortfalls elsewhere, Opalesque Commodities Briefings, new free daily commodities publication
- Credit Crunch Update - US financials slumped to lowest level since 1997, Fear factor vs. opportunity knocking, Bernanke signals readiness to cut rates, Update: Fed creates facility to buy commercial paper, Morgan Stanley seeks to buoy confidence as shares fall 25%, capital raising from Mitsubishi UFJ still on track, BofA raises $10bln by selling shares at lower price, shares fall 26%, Pandit defends Citi, which sued Wachovia and Wells for up to $60bn in damages, AIG under fire for $370,000 trip to resort, $23,000 in spa charges, IMF warns about failure to act decisively on financial turmoil, $675bln in capital needed by major global banks to keep private sector credit growing, China`s central bank welcomes bailout plan, denies buying American debt
- EU agrees action on banking crisis, UK banks to be part-nationalised, Pressure remains on Commerzbank, Dresdner Bank, Deutsche Bank, Spain announces Eur30-50bln emergency fund, Russia`s Medvedev pledges $36bln more for banks, Iceland seeks $5.4bln emergency loan from Russia, Russian Finance Minister says no decision made, Iceland nationalises Landsbanki, Icesave accounts blocked, UK govt launching legal action against Iceland
- Lehman Update - N.J. Attorney General investigating Lehman Brothers after state loses $180m invested in Lehman in June
- Short Selling Regulations - SEC Director confirms agency considering reinstatement of uptick rule, Regulators set to lift ban on short selling tonight
- Regulatory - Cox`s SEC censored report on Bear Stearns collapse, SEC gave `preferential treatment` to Morgan Stanley`s John Mack, attempts to question Mack `connected` to firing of SEC lawyer, China`s regulator (CSRC) to allow margin trading and short selling of A-shares on a trial basis, Dubai Financial Services Authority signed information sharing and co-operation agreement with China and Singapore`s regulators
- Legal - Pickens, whose HF lost $1bln this year, sues Lehman unit for $59.9m for breaking default agreement
- M&A - Jeffries report: Asset manager M&A for 3Q-08 climbing, 69 worldwide transactions were announced, SocGen to merge internal fund management arms Lyxor and SGAM A. I.
- Institutions - Cerulli Report: Pension and investment consultants focus on alternative asset classes while demand for traditional long-only products is stagnant
- Opalesque Exclusive: Hedge fund industry`s growing pains ripple down to show the faces of individuals, how one former fund manager is holding onto the silver lining
- Opalesque Excusive: GEM Global Equities loses head of research and manager, hires new investor relations for Istanbul office
- People - Gottex hires Dr. D. Kuettel to manage new Zurich office, Hermes appoints Godfrey to head performance analysis, Quant shop Hagin I. M. hires Xiaoli Wang, PhD, as analyst, Christopher Cooke formerly of CQS to join investment bank Greenhill as managing director, Update: CalPERS CEO recruitment underway, process and position information available
- Europe - European financing squeeze intensifies, refinancing healthy companies has become difficult
- Asia - Oaktree plans joint projects with South Korea`s $170bln National Pension Service, South Korea to hunt currency speculators as won tumbled 7% yesterday, HK follows Australia, cuts interest rate by a percentage point, China financial system still relatively closed market, less damaged by crisis, Japan suffers massive stock sell-off
- Australasia - AIMA Survey: More than half of Australian hedge funds hit by shorting ban, HBOS sells BankWest to CBA for A$2.1bln
- Environmental Investing - Weather Risk Solutions launches Hurricane Risk Landfall Options - HuRLOs, available for remainder of 2008 hurricane season
- Opalesque Real Estate Briefing, Opalesque`s new free daily Real Estate publication
- Opalesque Exclusive: Altestque Events presents 2008 Hedge Fund Insider`s Update, NYC, November 10th
- Exchanges - CME Group and Citadel launching joint venture credit default swaps trade platform and central counterparty facility to be linked to CME Clearing, Information on SEB`s exposure to Icelandic banking groups, Barclays Capital absorbs Lehman Forex, commodities operations
- Activist Investing - Sandelman discloses former Countrywide stake
- News Briefs - Moody`s downgrades Legg Mason debt, Insurer MetLife pre-announces expected 3Q-2008 results, decline in investment income driven by negative HF and PE returns, Sullivan, Simpson law firms awash in work as crisis deepens
- And Finally. When you have time on your hands: genealogy experts found that Palin may be related to Princess Diana, Roosevelt, and Obama is Brad Pitt`s distant cousin
- Logon: http://www.opalesque.com/index.php?act=archive
- Launches - Frontier Capital launches global FoHFs, WERU A. M. launches Japan credit fund
- Closures - Update: Close Man hedge fund to shut amid fall to GBP4m, redemptions suspended, Hedge fund closures to soar (video)
- Assets - Shares in Brevan Howard listed macro fund sink to 13% discount to NAV, Invesco Multi-Strategy capability grows to $100m, Hedge Fund seeder SkyBridge held a first close in July, next in December
- Investors - Hedge investors ask for longer lock-ups to avoid closures, Survey finds 15% sophisticated investors see potential for strong returns from hedge funds, UBS Equity risk index shows investor tolerance at historic lows, CBOE`s fear gauge (VIX), S&P 500 index options hit records, LGT Capital recommends Indian investors to invest in domestics
- Opalesque Exclusive: While the EurekaHedge Hedge Fund Index is down 3% (est.) in September (-6.21% YTD), Titan Capital Volatility US fund is up 18% (20.86% YTD)
- Indices - BarclayHedge Fund Index (est.) -5.96% for September, -11.31% YTD, Parker Index down -0.73% for August, top performer is Trigon FX Program (+16.55%), Hedge funds losses balloon in September, average hedge fund down 9.41% YTD (-4.68% in September, est.): HFR, Hedge funds outperform equity market but not bonds
- Opalesque Exclusive: Agricultural value investor Craton Capital sees opportunity amidst sell off
- Commodities - Red Kite`s metals hedge fund lost 30% in August - source, Commodity managers say investors are cashing out profits to cover shortfalls elsewhere, Opalesque Commodities Briefings, new free daily commodities publication
- Credit Crunch Update - US financials slumped to lowest level since 1997, Fear factor vs. opportunity knocking, Bernanke signals readiness to cut rates, Update: Fed creates facility to buy commercial paper, Morgan Stanley seeks to buoy confidence as shares fall 25%, capital raising from Mitsubishi UFJ still on track, BofA raises $10bln by selling shares at lower price, shares fall 26%, Pandit defends Citi, which sued Wachovia and Wells for up to $60bn in damages, AIG under fire for $370,000 trip to resort, $23,000 in spa charges, IMF warns about failure to act decisively on financial turmoil, $675bln in capital needed by major global banks to keep private sector credit growing, China`s central bank welcomes bailout plan, denies buying American debt
- EU agrees action on banking crisis, UK banks to be part-nationalised, Pressure remains on Commerzbank, Dresdner Bank, Deutsche Bank, Spain announces Eur30-50bln emergency fund, Russia`s Medvedev pledges $36bln more for banks, Iceland seeks $5.4bln emergency loan from Russia, Russian Finance Minister says no decision made, Iceland nationalises Landsbanki, Icesave accounts blocked, UK govt launching legal action against Iceland
- Lehman Update - N.J. Attorney General investigating Lehman Brothers after state loses $180m invested in Lehman in June
- Short Selling Regulations - SEC Director confirms agency considering reinstatement of uptick rule, Regulators set to lift ban on short selling tonight
- Regulatory - Cox`s SEC censored report on Bear Stearns collapse, SEC gave `preferential treatment` to Morgan Stanley`s John Mack, attempts to question Mack `connected` to firing of SEC lawyer, China`s regulator (CSRC) to allow margin trading and short selling of A-shares on a trial basis, Dubai Financial Services Authority signed information sharing and co-operation agreement with China and Singapore`s regulators
- Legal - Pickens, whose HF lost $1bln this year, sues Lehman unit for $59.9m for breaking default agreement
- M&A - Jeffries report: Asset manager M&A for 3Q-08 climbing, 69 worldwide transactions were announced, SocGen to merge internal fund management arms Lyxor and SGAM A. I.
- Institutions - Cerulli Report: Pension and investment consultants focus on alternative asset classes while demand for traditional long-only products is stagnant
- Opalesque Exclusive: Hedge fund industry`s growing pains ripple down to show the faces of individuals, how one former fund manager is holding onto the silver lining
- Opalesque Excusive: GEM Global Equities loses head of research and manager, hires new investor relations for Istanbul office
- People - Gottex hires Dr. D. Kuettel to manage new Zurich office, Hermes appoints Godfrey to head performance analysis, Quant shop Hagin I. M. hires Xiaoli Wang, PhD, as analyst, Christopher Cooke formerly of CQS to join investment bank Greenhill as managing director, Update: CalPERS CEO recruitment underway, process and position information available
- Europe - European financing squeeze intensifies, refinancing healthy companies has become difficult
- Asia - Oaktree plans joint projects with South Korea`s $170bln National Pension Service, South Korea to hunt currency speculators as won tumbled 7% yesterday, HK follows Australia, cuts interest rate by a percentage point, China financial system still relatively closed market, less damaged by crisis, Japan suffers massive stock sell-off
- Australasia - AIMA Survey: More than half of Australian hedge funds hit by shorting ban, HBOS sells BankWest to CBA for A$2.1bln
- Environmental Investing - Weather Risk Solutions launches Hurricane Risk Landfall Options - HuRLOs, available for remainder of 2008 hurricane season
- Opalesque Real Estate Briefing, Opalesque`s new free daily Real Estate publication
- Opalesque Exclusive: Altestque Events presents 2008 Hedge Fund Insider`s Update, NYC, November 10th
- Exchanges - CME Group and Citadel launching joint venture credit default swaps trade platform and central counterparty facility to be linked to CME Clearing, Information on SEB`s exposure to Icelandic banking groups, Barclays Capital absorbs Lehman Forex, commodities operations
- Activist Investing - Sandelman discloses former Countrywide stake
- News Briefs - Moody`s downgrades Legg Mason debt, Insurer MetLife pre-announces expected 3Q-2008 results, decline in investment income driven by negative HF and PE returns, Sullivan, Simpson law firms awash in work as crisis deepens
- And Finally. When you have time on your hands: genealogy experts found that Palin may be related to Princess Diana, Roosevelt, and Obama is Brad Pitt`s distant cousin
- Logon: http://www.opalesque.com/index.php?act=archive
_________________________________________________________________________
Misc. Items of Interest
What Obama Can Teach You About Your Business | by Kermit
Pattison
Fast Interview: John Della Volpe, founder and managing
Partner of SocialSphere Strategies and director of
polling at Harvard University's Institute of Politics,
contends that Obama campaign marks a once-in-a-generation
innovation in American politics.
http://trax.fastcompany.com/k/w/mailman/fasttake/20081008/john_della
What Sarah Palin Might Have in Common with Your Boss |
by Tom Stern
A Kick in the Career: Can lack of experience make someone
a bad leader? In this week's column, humorist and
careers expert Tom Stern considers the ramifications
of elected officials emulating managers at a business
when making decisions (such as the little matter of
choosing a running mate).
http://trax.fastcompany.com/k/w/mailman/fasttake/20081008/sarah_palin
Pattison
Fast Interview: John Della Volpe, founder and managing
Partner of SocialSphere Strategies and director of
polling at Harvard University's Institute of Politics,
contends that Obama campaign marks a once-in-a-generation
innovation in American politics.
http://trax.fastcompany.com/k/w/mailman/fasttake/20081008/john_della
What Sarah Palin Might Have in Common with Your Boss |
by Tom Stern
A Kick in the Career: Can lack of experience make someone
a bad leader? In this week's column, humorist and
careers expert Tom Stern considers the ramifications
of elected officials emulating managers at a business
when making decisions (such as the little matter of
choosing a running mate).
http://trax.fastcompany.com/k/w/mailman/fasttake/20081008/sarah_palin
_____________________________________________________________________
Funnies, Facts, Quotes, etc….
circumlocution sir-kuhm-loh-KYOO-shuhn, noun:
The use of many words to express an idea that might be expressed by few; indirect or roundabout language.
_________________________________________________________________________
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)
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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
respective publishers, as referenced by header and appropriate hypertext links.
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