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October 2007

3.10.2007 - Regulator action on commodities hits record levels
The number of cases involving manipulation and false price reporting in commodity and commodity futures markets caught by US regulators has reached record levels in the past 12 months.

3.10.2007 - Currency hedge funds down 1.54% in August
Absolute returns from currency hedge funds fell 1.54% in August, the second straight month of declines as the financial market turmoil of recent weeks took its toll on the industry.

4.10.2007 - Funds' relationship with commodities change
Pension funds are devoting a growing share of their nascent commodities portfolios to more complex strategies on top of their simpler long-only commodity indices investments. Pension fund managers and their bankers told the Commodities Week conference in London that the gradual shift was proof that investment in commodities was maturing, with vastly more managers and products on offer than five years ago.

5.10.2007 - Harbinger Returns Up 65%
Harbinger Capital Partners has generated a whopping 65% in returns this year by betting against subprime mortgage bonds and investing in commodities. According to the HRFX Index, the industry’s average return for the first nine months of 2007 was 4%.

5.10.2007 - Tiberius Getting Physical
Commodities and energy hedge fund manager Tiberius is mulling getting into physical crude or base metals, a ?next step? from its current mandate of trading futures contracts.

5.10.2007 - Oil holds above $81 while gold rises
Crude oil prices were trading above $80 a barrel for a third successive week as poor supply levels and low heating oil inventories overshadowed worries about a slowdown in the US economy.

9.10.2007 - Goldman Sachs Fund Buys Stake In Winton Capital
Call it a private equity fund of hedge funds. Goldman Sachs Asset Management’s new $500 million private equity fund has bought nearly 10% of London-based hedge fund manager Winton Capital Management, Winton said.

9.10.2007 - Uncertain outlook for base metals
For the first time since the base metals bull market started in 2001, the mining executives, metal traders and investors gathering for the London Metal Exchange week’s dinner tonight face an uncertain outlook. The possibility of a significant US economic slowdown that could extend to other geographical areas in 2008, and cut consumption, is a threat to the longest and strongest base metals bull market in a generation, argue the bears.

10.10.2007 - ICE to list forex contracts on ICE Futures U.S. in November
In a move aimed at competing for market share with a rival exchange, IntercontinentalExchange Inc. said Wednesday it will offer a range of foreign exchange futures on its ICE Futures U.S. platform on Nov. 9.

10.10.2007 - Managed Futures: Pitfalls in Performance Evaluation
While the futures industry's regulatory rules provide clear guidance as to the presentation of managed account composite performance reporting, there are pitfalls in making investment decisions based on a track record's outward appearance without considering the potential for internal distortions.

11.10.2007 - Gibbs of ABN Amro Expects Further Dollar Weakness  Video news
Greg Gibbs, a currency strategist with ABN Amro Holding NV, talks with Bloomberg's Bernard Lo from Sydney about the outlook for the euro and European Central Bank interest-rate policy, the dollar, Asian currencies and so-called commodity currencies.

11.10.2007 - End Of The Hedge Road
It's déja vu all over again, for Victor Neiderhoffer. A decade after losing a good portion of his personal fortune as a result of the Asian financial crisis, he's facing more losses at Manchester Trading, the liquidation of his flagship Matador Fund and another unnamed fund.

11.10.2007 - Wheat and cotton in commodities turf war
It is often said that each financial boom contains the seeds of the following correction. Nowhere is that truer than in the agricultural commodities market, where today’s high wheat prices are encouraging farmers to seed a large crop for 2008 in a move that is likely to depress next season’s prices.

11.10.2007 - A Look At The Next Generation of Commodity Indexes
Investors seem to have a love-hate relationship with commodities. Not me - long time readers know that I am a big fan of both commodities and managed futures. Three months ago I wrote an article on managed futures and how Renaissance was planning on launching a $25 billion fund.

11.10.2007 - Copper bull market 'to persist next year'
Codelco, the world’s largest copper producer, on Tuesday said the metal’s bull market would continue next year as rising Chinese demand more than offset weak US consumption and a “double-digit” surge in production costs.

11.10.2007 - European Hedge Funds Try Self-Policing
Attempting to head off calls for greater regulation, a group of Europe's largest hedge-fund managers yesterday proposed ways to make the secretive industry more transparent.

11.10.2007 - Algorithms pose risks to funds' FX trades
The increasing use of algorithms to trade foreign exchange by hedge funds and institutional money managers is exposing them to new risks, a report has warned. The report, by trading platform provider FXall, came soon after a Bank for International Settlements survey found that algorithmic trading of foreign exchange had almost trebled in the past three years, to account for 30% of foreign exchange volumes.

12.10.2007 - A New Way to Invest in Commodities and Large Cap Momentum
A new family of ETNs called Elements Spectrum (www.elementsetn.com) launched by Nuveen Invesetments, Merrill Lynch, BNP Paribas, and Swedish Export Credit Corporation. Swedish Export Credit Corporation is the ETN issuer, and has a strong credit rating.

12.10.2007 - Turkey fears send oil to record high
Crude oil prices on Friday surged to a fresh high of $84 a barrel on concerns that Turkey might soon launch an invasion of northern Iraq in an attempt to hit Kurdish militants it accuses of attacking Turkish targets.

13.10.2007 - Fauchier tells clients to be wary of 'black box' funds
One of London's most successful hedge fund groups alerted clients to the dangers of "black box" hedge funds yesterday, arguing that their computer-driven strategies contained the seeds of their own destruction. Fauchier Partners, which advises wealthy individuals and institutions, said that it shunned black box, or quantitative, funds because of what it regarded as weaknesses in their design.

15.10.2007 - Price of coffee jumps to 10-year high
Coffee prices have surged to a 10-year high, pushed by fears that a drought in Brazil, the world’s largest producer, might halve its crop for the second year in a row and concerns about the Vietnamese harvest.

16.10.2007 - Hedge Funds Get Physical
Investing in hedge funds no longer involves a virtual or paper chase for higher returns. Hedge funds are increasingly acquiring stakes in physical commodities as a way to boost performance. ?Wherever you look, the trend is to move into the physical side of the business,? Gary Vasey of UtiliPoint told Reuters. Hedge funds that specialize in commodities are forming special opportunities funds for the occasion as they get physical to get a better handle on the market.

17.10.2007 - Eclectica says soft commodities to emulate oil rally
Soft commodities like corn and wheat, which have lagged behind the oil price rally, are set to boom, helped by a growing world population and rising income in developing countries, Eclectica Asset Management said.

17.10.2007 - Da Vinci Soaks Up Volatility, Preps Healthcare Hedge Fund
German pension schemes are flocking into the Da Vinci Arbitrage Fund and for good reasons: the Zurich, Switzerland-based volatility arbitrage fund is up 22.77% year to date through September.

18.10.2007 - ETNs Get Better: Daily Redemptions
The argument for using exchange-traded notes [ETNs] to access the commodities market gets stronger every day.

18.10.2007 - Gemini Rushes Into Gold With First Hedge Funds
Gemini Futures in August began trading its first two hedge fund strategies, looking to capture profits from gold deposits, which was previously only accessible to industry insiders such as metals mining companies, manufacturers and bullion dealers, according to the firm.

18.10.2007 - Commodities Jobs Soar By Default
Subprime mortgage defaults have inadvertently helped strengthen the already sizzling commodities sector at least with regard to staffing. According to Bloomberg News, demand for commodities traders is so high these days, that staffers who lost their jobs because of the recent market crises--include those specializing in fixed income--can find refuge in commodities, which still are long on growth possibilities but short on talent.

19.10.2007 - Be wary of 'one-way' currency bets, euro official warns
As expected, the communiqué handed down by the finance ministers and central bankers of the Group of Seven industrialized nations Friday night made no specific mention of the declining U.S. dollar or the weak Japanese yen, but European officials appeared to again put currency traders on warning.

19.10.2007 - With euro at new high, pressure mounts for action on dollar
The embattled U.S. dollar sank to a new low against the euro Thursday as fresh evidence of losses in the mortgage industry stoked fears of a sharper-than-anticipated economic slowdown in the United States.

19.10.2007 - Managed Futures Bounce Back In September
What a difference a month makes: August heat gave way to a cooler September breeze as managed futures gained 3.76% last month, according to flash estimates from the Barclay CTA Index. The Index dropped 1.63% in August.

20.10.2007 - De Rato of IMF Says U.S. Dollar `Is Still Overvalued'  Video news
Rodrigo de Rato, managing director of the International Monetary Fund, Italian Finance Minister Tommaso Padoa-Schioppa, and John Lipsky, first deputy managing director of the IMF, speak at a news conference in Washington about the International and Monetary Financial Committee, surveillance of the IMF and the U.S. dollar.

22.10.2007 - G7 wants appreciation in yuan vs euro: ECB member
The message of the recent Group of Seven meeting is for an appreciation of the yuan against the euro, following the Chinese currency's gains versus the dollar, a European Central Bank executive board member said.

24.10.2007 - CFTC Seeks ICE Restrictions In Amaranth’s Wake
Amaranth Advisors lost billions trading natural gas contracts on the Intercontinental Exchange, and the U.S. Commodity Futures Trading Commission wants to make sure that nothing like it ever happens again.

24.10.2007 - iPath Doubles Offerings With Eight Commodities ETNs
The iPath family of exchange-traded notes [ETNs] literally doubled overnight. Barclays Bank launched eight new ETNs today on the NYSE Arca exchange. The family already included eight ETNs.

24.10.2007 - CME's Net Income Nearly Doubles
CME Group Inc. posted a 94% jump in third-quarter net income the first quarter following its $12 billion acquisition of CBOT Holding, as the derivatives exchange was boosted by the summer's market turmoil.

25.10.2007 - CME, Brazilian Merc To Swap Shares
CME Group and the Brazilian Mercantile & Futures Exchange (BM&F), the world's fourth largest derivatives exchange, signed a non-binding letter of intent detailing a cross-investment proposal. Per the proposal, CME Group would acquire a 10% equity stake in BM&F and the Brazilian bourse would get a 2% equity stake in CME Group.

25.10.2007 - Hedge Fund Honcho Preps Multi-Strat Portfolio
Jürg Bühler, co-founder of Zug, Switzerland-based Dighton World Wide Investment, is readying a multi-strategy, de-levered version of the firm’s US$100 million Dighton Funds SPC. The new strategy will launch within a few weeks with between US$20 million and US$30 million in assets.

25.10.2007 - CFTC signals radical change to OTC markets
US watchdogs on Wednesday signalled sweeping change to the way the vast over-the-counter commodity and energy derivatives markets are overseen when they unveiled proposals that would tighten regulation of trading on OTC electronic trading platforms.

26.10.2007 - Property derivatives point way
As banks and hedge funds increasingly seek new ways to shore up balance sheets in the wake of the credit squeeze, property derivatives have emerged as a lucrative way of bolstering returns.

27.10.2007 - Oil and gold rise to fresh highs
Crude oil hit a record high above $92 a barrel on Friday, driven higher by fresh geopolitical tensions in the Middle East, tight market fundamentals and increased options-related buying.

29.10.2007 - ProShares Files To Launch 48 News ETFs
ProShares recently filed with the Securities and Exchange Commission to launch 48 new exchange-traded funds providing leveraged, short and inverse-short exposure to commodities and currency.

29.10.2007 - NFA Clamps Down On Trade Secrets Abuse
The National Futures Association has filed a proposed rule change with the Securities and Exchange Commission and the Commodity Futures Trading Commission clarifying that its members may not misuse secret information and trade secrets from competitors.

30.10.2007 - Robert Rubin Says Weaker Dollar Isn't `Sound Approach'  Video news
Robert Rubin, chairman of Citigroup Inc.'s executive committee and former U.S. Treasury secretary, talks with Bloomberg's Sophie Caronello and Daniel Whitten in Washington about the U.S. dollar and monetary policy, the outlook for the economy and the potential impact of aggressive U.S. investment in carbon-control technologies on U.S. growth.

30.10.2007 - For New Hedge Fund, All That Glitters Is Gold
Newly-formed hedge fund Hinde Capital has launched the Hinde Gold Fund, focusing on the precious metal. The U.K.-based fund will primarily invest in the physical commodity and securities of companies that explore, mine, produce or process gold through a combination of long- and short-term investments.

31.10.2007 - Credit Suisse Names Commodities Co-Heads
Adam Knight and Beau Taylor have been named co-heads of global commodities at Credit Suisse. Knight will be based in London, reporting to Gael de Boissard, head of regional fixed income, and develop the firm’s alliance with Switzerland-based commodities trading shop Glencore International.


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