Tuesday, September 25, 2007

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 Top Stories


Man Group Fee Income to Climb 15% as Assets Increase (Update3)
Source: Bloomberg
Man Group Plc, the world's largest publicly traded hedge fund company, said first-half net fee income will climb about 15 percent as it attracted more money from clients. More...

JPMorgan hedge fund unit turns to outsourcing
Source: The ADVOCATE
JPMorgan's hedge fund services unit in Greenwich is positioning itself for further growth with the advent of new technology that enables funds of hedge funds to outsource middle-office functions, such as administration and custody services. More...

LESS EDGY, MORE HEDGE-Y
Source: The New York Post
THE Meatpacking Dis trict has snazzy hotels, designer boutiques, glam restaurants, even a few surviving meat wholesalers - and soon, it will have its own hedge fund.

Paul Tudor Jones' iconic Tudor Investment Corp. is setting up shop at 401 W. 14th St., where landlord Taconic Investment is building a terraced penthouse atop the Ninth Avenue corner building.  More...

Treasury names hedge-fund study group members
Source: MarketWatch
The chief investment officer of the California Public Employees Retirement System and the chief executive of hedge fund Eton Park Capital Management will chair committees tasked by the Treasury Department to come up with guidelines for hedge fund managers and investors, the Treasury said Tuesday. More...


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

  Term of the Day & Related News

Risk Arbitrage

This strategy involves transaction-specific analysis seeking to profit by acquiring securities which are discounted from the value to be paid for them in a proposed merger or acquisition due to the uncertainty of transaction timing and completion. The difficulty is in analyzing the risk of delay or non-completion and determining when during the period from the commencement of a proposed merger or acquisition to the conclusion (successful or unsuccessful) of the transaction it is most efficient — on a present value basis — to take a position. Risk/merger arbitrage Portfolio Managers typically seek speculative profits from the purchase of shares in forecasted acquisition targets, while maintaining defensive positions through hedges in acquiring companies and disciplined risk management. More...
 
Related News:

Six weeks doth not an M&A trend make
Source
: FT Alphavilla
So say the prophets at UBS. So don’t panic.

European M&A may have dried up sharpish in late-July and showed few signs of a sustained come-back since. But the Swiss bank’s analysts believe that all is not lost. It’s not exactly ‘dealmania’, but they say don’t write off good old-fashioned deals between companies just yet.
More...

Canadian M&A rockets 81%
Source
: FinancialNews-US.com
Canadian mergers and acquisitions surpassed last year's record by 81% on mining and energy pacts, as this morning's activity hit more than $8bn (€5.67bn). More...

  Scholarly Article & Related News

Do Market Intermediaries Hedge their Risk Exposure with Derivatives? Evidence from UK Govt. Bond Dealers’ Spot & Derivatives Positions
by Narayan Y. Naik and Pradeep K. Yadav
Using a comprehensive dataset from the Bank of England of UK government bond dealers’ spot and derivatives positions at the end of each day, we find that dealers actively hedge their spot risk with derivatives. However, they hedge selectively rather than engage in full cover hedging. Some of these dealers hedge not only their main risk factor, i.e., Duration exposure, but also the second risk factor, Twist exposure...
More...

 
Related News:

In Defense of Credit Derivatives
Source: Portfolio.com
You can always tell when the newsflow slows down in the financial world, because invariably some columnist will trot out another brave reëvaluation of credit derivatives. Here's Scott Patterson:

The power of these derivatives -- most of which were launched just in the past few years -- is scrambling the way some investors think about financial markets. Brian Reynolds of M.S. Howells & Co. says he would be more bullish about stocks, except for pesky credit derivatives.
More...

Caution on derivatives
Source: The Bangkok Post
The Bank of Thailand has cautioned banks to exercise caution in marketing derivative products to clients.
More...

  Top Stories by Category
  Book of the Day & Related News

   
Equity Management: Quantitative Analysis for Stock Selection
by Bruce I. Jacobs, Kenneth Levy, Harry M. Markowitz
Average Customer Review: 3.0 
out of 5 stars
Price: $37.80
 
Book Description
Two pioneers and innovators in the money management field present their choice of groundbreaking, peer-reviewed articles on subjects including portfolio engineering and long-short investment strategy. More than just a collection of classic review pieces, however, Equity Management provides new material to introduce, interpret, and integrate the pieces, with an introduction that provides an authoritative overview of the chapters. Important and innovative, it is destined to become the "Graham and Dodd" of quantitative equity investing.

Related News:

The long and the short of JANA
Source: The Financial Standard
Lonsec has upgraded its “investment grade” rating on JANA’s long/short funds to “recommended” due to the group’s well-resourced and highly experienced research team led by long-time JANA executive John Coombe and new head of Australian equities Aidan Geysen.
More...

The summer bloodbath: Not a quant problem; just a problem
Source
: FT Alphaville
What went wrong? After a summer of quantitative pain, Amir Khandani and Andrew Lo have tested the theory that hedge funds have grown and proliferated to the point where in rushing for the exit from commonly held positions, they collide - and in some cases just knock each other out. More...

 

  Personal Interest


Amazon.com Begins Testing Digital-Music Downloads (Update4)
Source: Bloomberg
Amazon.com Inc., the world's largest Internet retailer, began testing a digital-music download service to compete with Apple Inc.'s iTunes. More...

Acupuncture is best way to treat back pain, study finds
Source: The Independent
The ancient Chinese practice of acupuncture works better than anything modern medicine has devised for the treatment of back pain, scientists have concluded. More...

 

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   Top Stories (Continued)


Hedge funds active in currency arbitrage
Source: Business Standard
Some hedge funds seem to resorting to currency arbitrage under the pretext of equity investments, if the FII inflows of $1.2 billion in a mere three days are anything to go by. More...

London’s Integrated sees lean time for hedge funds
Source: FT Alphaville
The flow of new money into hedge funds will dry up for the rest of the year as investors worry about collapses in the industry and re-evaluate their portfolios, according to London’s Integrated Asset Management, which invests in hedge funds, reports the FT on Tuesday. More...


UPDATE: Tapestry Listed Hedge Fund Co Raises GBP52 Million
Source: CNNMoney.com
Tapestry Investment Co. PCC Ltd. (TIC.LN), a listed fund of hedge funds managed by U.S.-based Ramius HVB Partners LLC, Tuesday said it has raised GBP52 million from a new share offering, nearly doubling its assets and indicating that investors are still keen on listed hedge-fund vehicles despite lackluster returns in July and August. More...

Paul Marshall: The heat may be off but hedge funds must still address fears
Source: FT Alphaville
Hedge funds - the bad boys of finance. Or is that private equity? We lose track of who is finance’s enemy number one from one month to the next. But not so long ago the funds were deeply unpopular - accused of stalking the markets, creating volatility, aggressively targeting respected UK companies through short-selling and looking for decent, hard-working public company executives to unseat. More...

US judge allows time for hedge funds' bankruptcy in Cayman Islands
Source: Caribbean Net News
Two bankrupt Bear Stearns Cos. hedge funds were granted continued protection from US lawsuits while they liquidate in the Cayman Islands, as long as they return $8 million to the US, a judge has ruled.
More...

Hedge Fund Execs Don't Expect New Rules
Source: Institutional Investor
A majority of executives at U.S.-based hedge fund firms do not think there will be increased regulation of the industry, new research has shown. Just 5% of partners at firms with assets worth between $100 million and $750 million and 15% of partners at firms with more than $750 million in assets said they believed there would be an increase in government regulation. Consulting firm Rothstein Kass, which conducted the research, polled 301 senior executives in June and July. More...

Hedge Funds Demystified - Applied Learning opens institutional level training to finance professionals for the first time
Source: SourceWire
Applied Learning, a leading training company in global financial markets, has announced today that for the first time it is opening its courses to institutional clients and (individual) financial professionals. Applied Learning has launched the “Open Course” Programme and the first course, “Hedge Funds Demystified”, will be run in London on December 4th. More...

MFS Investment says to expand into hedge funds
Source: Reuters
MFS Investment Management said on Monday it has set up a subsidiary to provide seed capital to hedge funds, in another instance of a mainstream money manager venturing into the alternative investments area.
More...


Today's Stories unabridged on the web
 

 
   Today's Humor
Deciding to eat healthier breakfasts, my brother-in-law declared that oatmeal would now be his cereal of choice. But after eating his first bowl, he told my sister, "I hope I develop a taste for the stuff. It goes down real rough."

"Well," she asked, "how long did you cook it?"

"You're supposed to cook it?" he said.
 

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