http://hf-implode.com Tracking as hedge funds learn about risk ... the hard way. en http://hf-implode.com/viewnews/2008-07-23_PossibleRoleofSemGroupBankruptcyinOilPriceDrop.html http://hf-implode.com 2008-07-23 Traders sold oil futures as news emerged that tropical storm Dolly was set to miss oil and natural gas installations in the US Gulf of Mexico. Oil traders said SemGroup could have exacerbated the spike in oil prices this month, when the market experienced unprecedented swings of more than $10 a barrel, as the company was buying back some previous bets on lower prices. http://hf-implode.com/viewnews/2008-07-23_RadioFreeWallStreet7232008.html http://hf-implode.com 2008-07-23 "Lee Adler, Russ Winter and Aaron Krowne analyze the impact of key financial events on the financial markets and economy and tell what to look for in the weeks and months ahead. What are the next opportunities for profit? Not a subscriber? Click here for a free extended preview of this podcast." http://hf-implode.com/viewnews/2008-07-23_CARLOANCALLEDASSETSEIZUREBYBANKINSPITEOFPERFECTPAYMENTRECORD.html http://hf-implode.com 2008-07-23 "I warned you... I warned you that the banks would resort to seizing assets of people even with perfect payment records." http://hf-implode.com/viewnews/2008-07-23_ANewSheriffinTown.html http://hf-implode.com 2008-07-23 "The powerful rally in financials illustrates an important point. A bear raid where many stocks are shorted by 15, 20, even 25% combined with the July 14-15 capitulation was a set up for a ferocious short covering move. When I suggested such at the time, some suggested I was trying to catch a falling dagger. But in reality this set-up was more akin to catching the dagger, throwing it back at the thrower, and embedding it in his jugular." http://hf-implode.com/viewnews/2008-07-23_Bunningcriticizessupportformortgagegiants.html http://hf-implode.com 2008-07-23 "U.S. Sen. Jim Bunning again condemned a support package for troubled mortgage giants Fannie Mae and Freddie Mac, saying the plan backed by the Bush administration "smacks of socialism."" http://hf-implode.com/viewnews/2008-07-23_FannieFreddieRaceBanksToBottom.html http://hf-implode.com 2008-07-23 "Fannie Mae and Freddie Mac may be unintentionally driving down prices in already depressed markets to the detriment of commercial lenders such as Bank of America (BAC), JPMorgan Chase , Wells Fargo and Wachovia " http://hf-implode.com/viewnews/2008-07-23_FDICDontworryaboutbankfailures.html http://hf-implode.com 2008-07-23 "The housing bust will put more banks out of business, but all but a handful of institutions will weather the crisis, one of the nation's top financial regulators said Tuesday." We know which one they are, the 19 chosen. http://hf-implode.com/viewnews/2008-07-23_FannieMaeUnsold5BillionHomesBringPeriltoShareholders.html http://hf-implode.com 2008-07-23 "-- Fannie Mae, the largest U.S. mortgage finance company, couldn't find a buyer who would pay $6,900 for the three-bedroom house at 1916 Prospect St. in Flint, Michigan. So broker Raymond Megie, who is handling the foreclosure sale, advised cutting the price to $5,000. Megie still couldn't sell it. ``There's oversupply,'' he said. The home sold in 2005 for $110,000." http://hf-implode.com/viewnews/2008-07-23_FreddieFannieShouldSplitNotGetAidFaberSays.html http://hf-implode.com 2008-07-23 "Freddie Mac and Fannie Mae should close down their business or split into private companies and not get government aid, investor Marc Faber said." http://hf-implode.com/viewnews/2008-07-23_WallStreetGotDrunk.html http://hf-implode.com 2008-07-23 "Of course, if your entire world view is predicated on the belief that tax cuts cure all ills, and that any sort of regulatory supervision -- even of FDIC insured banks by the Federal Reserve -- is an evil to be avoided, well, then, it might look like drunkenness to you." http://hf-implode.com/viewnews/2008-07-23_TimetoGetPoliticalFolksMassiveBailoutsFrontandCenter.html http://hf-implode.com 2008-07-23 "they are on the move guys. I have always kept my political affiliations and actions a private matter but what is going on with the Fannie/Freddie, housing, mortgage, Treasury, Fed, Wall St, Washington, rich investor and foreign Gov’t bailout plan could turn out to be nothing short of the largest fraud ever perpetrated on the taxpayers, at least in my lifetime. I feel compelled to use whatever soapbox I have here to get this message out there to as many as I can." http://hf-implode.com/viewnews/2008-07-23_CBOComesClosetoSayingItMadeUpThat25BillionFreddieFannieRescueCos.html http://hf-implode.com 2008-07-23 "Readers may have seen that we cast aspersions on the CBO's estimate that the Fannie and Freddie rescue program would "probably" cost taxpayers $25 billion. We had noted that the estimate was only through 2009 because that's how far the authorization extends, but there is no way that Fannie and Freddie will ever be cut loose. Thus an estimate the looked at the liability that was really being taken on, which is open-ended, would come up with considerably higher numbers. A couple of readers stressed that that is how the game is played and the CBO can only opine on bills as written. Hence, legislation is drafted with sunset provisions that everyone knows are a fiction." http://hf-implode.com/viewnews/2008-07-23_4ReasonsWhyInvestorsShouldAvoidHedgeFundsatAllCosts.html http://hf-implode.com 2008-07-23 "...four curious characteristics of hedge funds make them different than many standard investments. If you don’t bat an eye at this list, then go for it and you’ll at least enter the fray with your eyes wide open. http://hf-implode.com/viewnews/2008-07-23_DeathSpiralFinancingatWaMuMerrillLynchCitigroup.html http://hf-implode.com 2008-07-23 "Even though hundreds of billions of dollars of capital have been raised by the financial sector over the past several months, which of the investors in a financial institution have made money since their initial investment? Answer: Zero." http://hf-implode.com/viewnews/2008-07-22_Asthemarketsthrowknuckleballshedgefundstarsstillhithomeruns.html http://hf-implode.com 2008-07-22 Some hedge-fund stars of 2007 are having an encore year. In the process, they are defying sceptics who questioned whether they could keep their runs going. John Paulson, who directed the hedge fund Paulson & Co to gains of almost $15bn (€9.4bn) last year, is up as much as 20% in some of his hedge funds through June 30, according to investors, thanks to continued bets on the woes of financial companies. ... Not all of last year's heavy hitters are belting homers. Two funds run by emerging-markets specialist Marko Dimitrijevic at Everest Capital are down about 10% through June, after gaining 30% last year. Even some of those who anticipated the troubles of various financial giants haven't been able to clean up. Hedge funds run by David Einhorn and William Ackman, for example, were up only a few percentage points through June. Our favorite quote from the article is this one from Daniel Arbess of Perella Weinberg: "There's nothing behind this rally. There's hazard ahead for investors who jump into financials now," he said. He wouldn't comment on his performance. Amen to that, brother. http://hf-implode.com/viewnews/2008-07-22_AbCaphedgefundplungesintoannualloss.html http://hf-implode.com 2008-07-22 Its Octane and European Catalyst funds, both the ultimate responsibility of Mr Homm, posted heavy losses of 25.8 per cent and 24.3 per cent respectively for the year to the end of December, AbCap said today. This helped pushed the hedge fund, which at its height managed $3.2 billion, into a €32.9 million pre-tax loss for year. Last time, it recorded profits of €27.6 million. http://hf-implode.com/viewnews/2008-07-22_HedgeFundInflowsSufferSteep2QSlide.html http://hf-implode.com 2008-07-22 ``Inflows fell 78.7%, to $12.5 billion, in the second quarter from a year earlier, according to data released Friday by Hedge Fund Research.'' http://hf-implode.com/viewnews/2008-07-22_HedgefundsuesRBSfor250mwithdrawal.html http://hf-implode.com 2008-07-22 Royal Bank of Scotland is embroiled in a multi-million pound lawsuit after reversing a €250m ($394m) investment by ABN Amro in a London hedge fund shortly after its takeover of the Dutch bank. Merebis Capital Management has filed a case in London’s High Court, claiming it is owed a penalty fee of £17.8m ($35m) for the early withdrawal by ABN, which was repaid most of its investment earlier this month, prompting the closure of the hedge fund. The withdrawal of the cash by ABN helps bolster RBS’s recently rebuilt capital base and partially overturns a policy of investing in hedge funds to boost the amount of business done with the funds, including sales to private bank clients. It came as two other hedge fund investments by the bank turned sour. http://hf-implode.com/viewnews/2008-07-22_WilburRosstakesabeatingonAssuredGuaranty.html http://hf-implode.com 2008-07-22 ``Investor Wilbur Ross saw more than $100 million go up in smoke after Moody’s said it would review the rating of Assured Guaranty (AGO), the bond insurer Ross bought into earlier this year. The news that Moody’s might yank Assured Guaranty’s triple-A insurer financial strength rating sent shares of the Bermuda-based company plunging 47% in heavy trading Tuesday.'' http://hf-implode.com/viewnews/2008-07-22_NexttoFailABacklashHitsMediaAnalysts.html http://hf-implode.com 2008-07-22 The debate over publicizing a bank's problems took a couple more twists Monday as a bank sued an equity analyst for raising what it claims were false alarms about its health, and a federal regulator took the news media to task for stirring public fears. BankAtlantic Bancorp Inc.'s banking unit sued Ladenburg Thalmann & Co., claiming the analyst Richard X. Bove defamed the Fort Lauderdale, Fla., company in a research report issued last week.