Friday, August 3, 2007

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 Top Stories


Bear hedge fund sank as Merrill protected clients
Source: Reuters
A late June move by Merrill Lynch & Co. Inc. (MER.N: Quote, Profile, Research) to protect its clients from a struggling hedge fund run by Bear Stearns Cos. Inc. (BSC.N: Quote, Profile, Research) helped hasten the fund's ultimate collapse, court papers show. More...

Hedge funds: July winners and losers: first, the good news….
Source: FT Alphaville
For some hedge funds, it was like Christmas in July, notes the Wall Street Journal’s Heard on the Street column.

After a difficult two-month period for many hedge funds, some are now beginning to share their July results with investors - although, as FT noted on Thursday, others are not sharing, amid conflicts between funds and their administrators over the release of July performance reports. More...

Merrill Lynch Report: Hedge Fund Replication Avoids Headline Risk
Source: SeekingAlpha
Hedge fund replication has been touted as a way to avoid paying “excessive” hedge fund fees, get better liquidity, and even to achieve higher returns than actual hedge funds. But a new report by Merrill Lynch (MER) makes an argument that hits close to home for many pensions and endowments. More...

Hedge funds prepare to buy amid credit woes
Source: MarketWatch
Rising subprime mortgage delinquencies and pulled leveraged loan deals are roiling global credit markets, but some big hedge funds are preparing to buy and others have already begun stepping in to scoop up distressed assets. More...


More of Today's Stories continued below...  or  Today's Stories unabridged on the web

  Term of the Day & Related News

Market Risk

Market risk is the risk that the value of your investment will decrease due to moves in market factors.

Market risk is typically measured using a Value at Risk methodology. Market risk can also be contrasted with Specific risk which measures the risk of a decrease in one's investment due to a change in a specific industry or sector, as opposed to a market-wide move.
More...
 
Related News:

How to reduce investing risks
Source
: Rediff.com
All investors, whether in stocks or fixed-interest instruments, have to continually weigh the various risks associated with their investments. Money in a savings account assumes no risk factor, since the return is precisely what was originally expected. Further an investment (for example, com­mon stock) moves away from expected return, greater the risk. In short, risk can be defined as uncertain return.
More...

Risk diversification in multi-manager products
Source
: MoneyManagement.com.au
Beyond making the investment fund selection process much simpler, one of the primary reasons that investors are attracted to multi-manager funds is diversification.

The selection of a range of managers and asset classes increases the diversification of an investment, helping to cut investment risk. More...

  Scholarly Article & Related News

Cross-Border Listings, Capital Controls, and Equity Flows to Emerging Markets
by Hali Edison & Francis E. Warnock
International capital flows have skyrocketed over the past decade. Net private capital flows to emerging market countries tripled from $50 billion a year during 1987–89 to more than $150 billion a year over 1995–97. These flows, however, receded somewhat with the 1997–99 financial crises that spread from Asia to Russia and on to Latin America...
More...

 
Related News:

Emerging-Market Dollar Bonds Decline After U.S. Jobless Report
Source: Bloomberg
Emerging-market bonds fell after a U.S. report showing employers added fewer jobs than economists forecast suggested housing market woes were hurting the world's largest economy.
More...

Will Brazilian equities hold up amid rising risk aversion?
Source: MarketWatch
Can the Brazilian stock market, one of the star performers of the last two years, stand its ground in the face of a sharp spike in global risk aversion?
More...

  Top Stories by Category
  Book of the Day & Related News

   
Introduction to the Mathematics of Financial Derivatives
by Salih N. Neftci
Average Customer Review: 4.0 
out of 5 stars
Price: $62.96
 
Book Description
Provides an introduction to the mathematics utilized in the pricing models of derivative instruments. Approaches the mathematics behind continuous-time finance informally. Examples are given and relevance to financial markets is provided.

Related News:

Derivatives cloud U.S. economic outlook: IMF
Source: MarketWatch
The growth of derivative markets is making it more difficult to assess the vulnerabilities of U.S. financial markets and the risks to underlying economic activity, according to the latest report on the U.S. economy released Wednesday by the International Monetary Fund.
More...

Fortis Launches Commodity Derivatives Operations in New York and Expands London Team
Source
: EarthTimes.org
Fortis is delighted to announce the establishment of a Fortis Commodity Derivatives operation in New York, and a significant expansion of its team in London. More...

 

  Personal Interest


Cubs Knock on Wood
Source: The New York Times
The long, strange trip of Kerry Wood has, yet again, reached Wrigley Field. Before today’s game, the Cubs will activate Wood, who has not pitched in the major leagues since June 6, 2006, because of the same shoulder problems that have bothered him since the start of 2005. Wood has had 11 stays on the disabled list and two major surgeries. More...

Google sidesteps mobile reports
Source: BBC News
Google has refused to deny mounting speculation that it is working to produce its own brand mobile phone.

Reports suggest that the web giant is developing a series of"GPhones", centred on its mobile services, such as search, e-mail and maps.  More...

 

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   Top Stories (Continued)


Fusion Capital Launches ETF Hedge Fund
Source: FINalternatives
Southpointe, Pa.-based Fusion Capital Management is making its entrance into the hedge fund space via exchange-traded funds. The firm recently launched Global Fusion Partners, a global macro multi-strategy fund that exclusively trades ETFs. More...

Garden State To Allocate $225M To Three Hedge Funds
Source: FINalternatives
The head of the New Jersey Division of Investment last month recommended to the state investment council allocations totaling $225 million to a trio of single-strategy hedge funds and funds of funds. More...


Knight Capital CFO moves to hedge fund
Source: FinancialNews-US.com
The chief financial officer at US market-maker and online broker Knight Capital Group has left to join a $35bn (€25.5bn) hedge fund ahead of its planned initial public offering. More...

The Lie That Will Kill Hedge Funds
Source: TheStreet.com
It's all in the marks. Unless you have run a hedge fund, you have no idea what that means.

So I will explain it to the uninitiated. More...

Once were safety first products
Source: The Sydney Morning Herald
HEDGE funds were originally designed to be less risky than conventional superannuation funds. At their inception they aimed to cut investment risk by using options and futures. More...

Some hedge funds post big gains in July -WSJ
Source: Reuters
Some hedge funds were able to post big profits in July, usually by betting on problems in the subprime-mortgage market, the Wall Street Journal reported on its Web site on Thursday. More...

Blackstone Kailix hedge fund up 15 pct
Source: Reuters
Blackstone Group's (BX.N: Quote, Profile , Research) initial public offering performance has clearly disappointed, but investors in the firm's $1.8 billion hedge fund are likely to be happier, people familiar with the fund said on Thursday. More...

Hedge Fund Confidential
Source: TIME
Who are these people? The art- and yacht-buying escapades of hedge fund operators such as Kenneth Griffin of Citadel and Eddie Lampert of ESL Investments grab the headlines. Yet there are more than 9,500 funds managing upwards of $1.74 trillion in assets, according to Chicago-based Hedge Fund Research, Inc. Many of those funds individually run a mere billion or three. This group of hedgies tend to be secretive loners, not prone to trading recipes. 
More...


Today's Stories unabridged on the web
 

 
   Today's Humor

A rookie police officer was assigned to ride in a cruiser with an experienced partner. A call came over the car's radio telling them to disperse some people who were loitering.

The officers drove to the street and observed a small crowd standing on a corner. The rookie rolled down his window and said, "Let's get off the corner."

No one moved, so he barked again, "Let's get off the corner!" Intimidated, the group of people began to leave, casting puzzled glances in his direction. Proud of his first official act, the young policeman turned to his partner and asked, "Well, how did I do?"

"Pretty good," replied the veteran, "especially since this was a bus stop."

 

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