Wednesday, October 3, 2007

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"Life leaps like a geyser for those willing to drill through the rock
of inertia." -
Alexis Carrel

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 Top Stories


CRISIS FOR NEW CLASS OF FUNDS
Source: The New York Post
Hedge-fund executives say the next blow to hammer their industry will likely come from a wave of hedge-fund redemptions driven by highly-levered funds that invest in other hedge funds. More...

COLUMN-Hedge Fund Nation Britain looks exposed: James Saft
Source: Reuters UK
Britain, with its dependence on property speculation, consumer debt and the spoils of high finance, is looking very vulnerable to the global credit crunch. More...

Citadel builds a diverse business
Source: FinancialNews-US.com
If US hedge fund manager Citadel Investment Group floated, would it be as an alternative asset manager or an investment bank? More...

South Africa: Bid for Stake in UK's Stenham Lets Peregrine Spread Wings
Source: AllAfrica.com
WEALTH and asset management group Peregrine Holdings had secured a non-binding agreement to acquire 65% of UK-based asset manager Stenham for £150m to grow its hedge fund business, the company said yesterday. More...


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

  Term of the Day & Related News

Emerging Markets

Emerging markets strategies focus on traditional fixed income, value and growth equity investments in markets outside of the United States and Western Europe, including Asia and Latin America as well as Eastern Europe, Africa and the less developed Mediterranean economies. Emerging markets are highly volatile and information relating to the securities traded in these markets is often difficult to obtain. Such inefficient markets offer excellent opportunities for the resourceful manager. More...
 
Related News:

Emerging market boom replaces bursting U.S. bubbles
Source
: Reuters UK
The bursting of U.S. housing and mortgage market bubbles has suddenly been replaced by emerging markets inflating, and world equities have got pumped up into the bargain.

With the herd mentality of global investors ever sharper, the Federal Reserve's decision two weeks ago to combat a U.S. credit market seizure with lower interest rate has stampeded investors to Asia, Latin America and elsewhere in the developing world.
More...

Finisterre Boosts Emerging Market Teams With New Hires
Source
: FINalternatives
Emerging markets hedge fund shop Finisterre Capital has hired George Liberatore and Christopher Watson to boost its special situations and emerging market corporate research expertise teams. More...

  Scholarly Article & Related News

A Nonparametric Test of Market Timing
by Wei Jiang
In this paper we propose a nonparametric test for money managers’ market timing ability and apply the analysis to a large sample of mutual funds that have different benchmark indices. The test (i) only requires the ex post returns of the funds and the benchmark portfolios; (ii) isolates timing from selectivity; (iii) separates the quality of timing information a money manager possesses from the aggressiveness with which she reacts to such information; and (iv) is robust to different information and incentive structures as well as underlying distributions. Theta—the parameter for timing ability—is on average below the neutral level (indexation) among actively managed domestic equity funds, and is very difficult to predict from observable fund characteristics...
More...

 
Related News:

Do You Have "Prediction Addiction"?
Source: The Huffington Post
You are not alone. And it probably is not your fault. It may be chemical.

"Prediction addiction" was coined by Jason Zweig, a staff writer at Money magazine and the author of a fascinating new book, Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich (Simon & Schuster August 1, 2007).
More...

Fees Draw Skepticism as Answer to Timing
Source: The Wall Street Journal Online
Mutual-fund executives and board members aren't optimistic that short-term redemption fees, encouraged by a new federal rule, will put an end to "market timing," according to a new survey.
More...

  Top Stories by Category
  Book of the Day & Related News

   
Risk Arbitrage
by Keith M. Moore
Average Customer Review: 3.5 
out of 5 stars
Price: $50.40

 
 
 
Book Description
A much-needed, up-to-date primer on the risk arbitrage investment process. Widely popular during the M&A boom of the early '80s, risk arbitrage is making a comeback. This complete resource takes investors through the ins and outs of risk arbitrage, explaining how it works and how to apply it in real-world situations. It also presents a systematic approach to risk arbitrage techniques that work in today's market.

Related News:

Japan Begins to Embrace M&A as a Path to Growth
Source: The Wall Street Journal Online
Restructuring and the need to tap high-growth overseas markets as the domestic population declines should drive Japanese companies to embrace more mergers and acquisitions over the coming years, Japanese bankers say.
More...

Trading the Odds with Arbitrage
Source
: The International Business Times
"I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought." Many of you might recognize these words spoken by Gordon Gekko in the movie Wall Street. In the movie, Gekko makes a fortune as a pioneer of arbitrage. More...

 

  Personal Interest


Nuclear Deal Reached With North Korea
Source: The New York Times
North Korea has endorsed an agreement to dismantle all of its nuclear facilities by the end of the year, according to a joint six-nation statement released by China in Beijing today, the state-run Xinhua News Agency reported. More...

Springsteen performs "Magic" in tour open
Source: Reuters
Bruce Springsteen and the E Street Band kicked off their latest U.S. tour on Tuesday and rocked their way through several cuts from the newly released "Magic," a collection of songs that mix an up-tempo pop-rock sound with stinging social criticism. More...

 

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   Top Stories (Continued)


Hedge Fund Inflows Slow in August
Source: FINalternatives
All hedge funds, with an estimated $1.9 trillion in assets, posted an inflow of $8.9 billion in August, according to figured released today by TrimTabs Investment Research and BarclayHedge. The August inflow was less than a quarter of the $39.1 billion inflow in July, the lowest since January’s $7 billion inflow. More...

Hedge-fund realities
Source: The Washington Times
Could a financial H-bomb be ticking? If so, the "h" is for hedge, as in hedge funds. And the explosive ingredients include: an absence of regulation; large amounts of debt with relatively little cash leveraged into securing many multiples of assets; the demand for returns and profits well above market averages; and the size of the securitization market in which mortgages, credit-card and other derivative forms of debt are bought and sold in the form of asset-backed collateral paper in part as a means of reducing risk. More...


John Paulson to attend Hedge Funds Review annual summit in Bahrain
Source: MENAFN.com
John Paulson, the founder and president of Paulson & Co. Inc. ("PCI"), and the fund manager for the Paulson funds specializing in merger and event arbitrage announced that he will be attending their 3rd Annual Middle East Summit, sponsored by Investcorp, and held in Bahrain between 5 - 7th November. More...

Court Says Hedge Fund Insider Trading Requires Jail Time
Source: FINalternatives
The Securities and Exchange Commission has made prosecuting insider trading among hedge funds a priority. Now, a federal appeals court is giving that effort some teeth. More...

Hedge funds are down but not out
Source: MarketWatch
Even though hedge funds got slapped in August with the triple-digit drop in the equity markets, their force is not diminished. Indeed, the only question about hedge funds these days is where they will take aim next. And smart money should follow.
More...

Time to Invest
Source: The Motley Fool
Months ago, I came across a stock with some unbelievable numbers. Sales looked good. Income had doubled. Return on equity was out of control. And it was a player in the growing body armor industry. Its name? DHB Industries. More...

New hedge fund firm hires CIO
Source: Pensions & Investments
Ivan Feinseth joined startup hedge fund manager AlphaWorks as CIO and portfolio manager. Ron Resnick, AlphaWorks CEO, said Mr. Feinseth will manage the firm’s first fund, being launched later this year. Mr. Feinseth was director of research and a portfolio manager at Matrix Investment Research. Daniel T. Scalzi, Matrix CEO, assumed Mr. Feinseth’s duties after his departure in April. More...

Webber to lead HSBC hedge fund-of-funds unit
Source: Pensions & Investments
Nigel Webber was appointed CEO of HSBC Alternative Investments, the investment bank’s hedge fund-of-funds division, which has about $5.9 billion in assets under management. Mr. Webber will also retain his current role as CIO of HSBC Private Bank. He replaced Barbara Rupf Bee, who was named global head of institutional sales at HSBC Investments, a new position.
More...


Today's Stories unabridged on the web
 

 
   Today's Humor
My husband decided life would be easier if he wired a new light switch in the master bedroom to save us from fumbling in the dark for the lamp. He cut through the drywall and found a stash of bottles and small boxes inside the wall.

"Honey!" he called excitedly. "You've got to come here and see what I found."

I ran in and quickly realized that his next task would be to fix the hole that now led into the back of our medicine cabinet.
 

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