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October 2008

3.10.2008 - Commodities benchmark falls 28% in 3Q
Severe selling pressure this week led to sharp falls in oil and metals prices amid mounting fears that the ongoing turmoil in financial markets will drag the global economy into recession. Agricultural commodities also fell this week amid concerns that weakness in oil consumption could also affect demand for ethanol and biofuels.

3.10.2008 - Commodities Head for Biggest Weekly Decline in Over 50 Years
Oil, copper, and corn drove commodities toward their biggest weekly decline in more than 50 years on concern that the worst financial crisis since the Great Depression will push the U.S. into recession.

3.10.2008 - Newedge Reveals Index Monthly Performance Data
Newedge, a global brokerage, has posted the monthly performance data for its Alternative Edge Short-Term Traders and CTA Indices. The AlternativeEdge Short-Term Traders Index (STTI) finished the month of September up 2.12% (11.3% YTD), while continuing to maintain its low correlation to equity-based indices.

4.10.2008 - UBS cuts jobs in proprietary trading and commodities
UBS will drop most of its commodities business and cut its involvement in proprietary trading, leaving a further 2,000 workers at the troubled bank jobless.

6.10.2008 - Da Vinci Hires New Portfolio Manager
Paolo Bozzo, a former trader at Beegee Trading, a proprietary commodity trading shop, has joined Da Vinci Invest Ltd. as a portfolio manager in charge of commodity volatility arbitrage.

7.10.2008 - CME-Citadel form CDS clearing facility
The battle for control of the $54,000bn credit derivatives market intensified as CME Group and Citadel, the hedge fund, teamed up to form an electronic marketplace with central counterparty clearing for credit default swaps

8.10.2008 - NY Hedge Fund Launches Global Macro Fund
New York-based MQS Asset Management recently launched a quantitative global macro hedge fund to invest in currencies and commodities.

8.10.2008 - Pickens, Hedge Funds Sue Lehman Commodity Services
Legendary Texas oilman T. Boone Pickens and four of his hedge funds have sued a Lehman Brothers division for breach of contract.

9.10.2008 - Pension funds favour "plain vanilla" in commodities
Sharp falls in commodity prices have yet to cause an exodus by pension fund investors from raw materials but the credit crisis could prompt a shift to simplicity and away from complex derivatives. "We haven't seen them (pension funds) coming out yet and we don't anticipate it," said Eric Kolts, vice president, Commodity Indices at Standard & Poor's.

10.10.2008 - Diapason’s L/S Ag. Fund Wilts In September
Diapason Commodities Management, the $7 billion Lausanne, Switzerland-based commodity-focused alternatives shop is currently feeling the pinch of the downtrodden market.

10.10.2008 - CME, Thomson to shut FXMarketSpace
CME Group and Thomson Reuters Corp. said Friday that they are taking steps to close their joint venture, FXMarketSpace. Launched in March 2007, FXMarketSpace was the world's first centrally-cleared global foreign exchange marketplace.

11.10.2008 - Dig in for the long term as commodities slide
Last week's report from Barclays said it all. The total amount of money invested in commodities has fallen to 210bn L123.5bn from 270bn in the third quarter.

12.10.2008 - Rush to put private commodities contracts on exchanges
Commodities traders are rushing their private bilateral contracts into exchanges and clearing houses as they race to reduce their counterparty risk amid a deepening financial crisis

13.10.2008 - Mr. Rogers' Neighborhood (SmartMoney Magazine)
John Rogers has his own personal comfort zone. He always wears a gray pinstripe suit to work, eats at least one meal a day at McDonald's and collects -- get this -- teddy bears. Sound quirky? Perhaps. But this fund manager has used his eccentric style to clobber the Standard and Poor's the past five years.

13.10.2008 - Mulvaney Trumps Hedge Fund Indices
Not every hedge fund is down in the dumps. Mulvaney Capital Management’s Global Diversified Fund returned 11.58% in September bringing its year-to-date returns to 27.45%.

13.10.2008 - FUND VIEW-Currency shakeout to benefit hedge funds
Recent sharp moves in global currencies are the start of longer trends set to produce strong money-making opportunities for trend-following hedge strategies, according to Insch Capital Chief Executive Chris Cruden.

13.10.2008 - Fundamental changes in commodities trading
Higher counterparty risks mean some over-the-counter deals have moved to public exchanges

15.10.2008 - JWH ‘Thrives’ In September
While hedge funds struggled with drawdowns last month, one quantitative shop made gains in an otherwise precarious market.

15.10.2008 - Merchant Commodity Trounces Hedge Funds in September
Merchant Commodity Fund, the hedge fund run by former Cargill Inc. traders Michael Coleman and Doug King, gained 12 percent in September as energy and agricultural prices slumped, two people with knowledge of its performance said.

15.10.2008 - Commodity trend followers profit, even in a crisis
The credit crisis has hammered most commodity prices to multi-month lows as investors pulled billions of dollars from the sector, but trend-following traders have survived, and even profited.

15.10.2008 - BCM Launches CTA Database For Managed Futures Investors
Balarie Capital Management recently announced that they have launched a free CTA database that tracks several hundred Commodity Trading Advisors. The CTA database allows individual and institutional investors (family offices, endowments, pensions) to view performance data on several hundred different Commodity Trading Advisors from all over the globe.

15.10.2008 - Commodities Head for Biggest Weekly Decline in Over 50 Years
Oil, copper, and corn drove commodities toward their biggest weekly decline in more than 50 years on concern that the worst financial crisis since the Great Depression will push the U.S. into recession.

15.10.2008 - Gibraltar domiciled fund launches managed futures cell
Quay Umbrella PCC Fund has launched its managed futures cell, CrystalClear Capital Management Fund, running a medium to long term trend following strategy under the Quay Financials (Gibraltar) Experienced Investor Fund Umbrella.

15.10.2008 - Commodity funds gird for more deleveraging
Commodity funds are struggling to regain a footing after a record fall in futures prices last week suggested to many that more liquidation could be in store for a sector that lost up to $60 billion (34 billion pounds) in the last quarter.

15.10.2008 - Trafigura Unit Plans $500M Energy Hedge Fund
Prominent commodities trader Trafigura Beheer plans to launch an energy hedge fund early next year, aiming to raise US$500 million.

16.10.2008 - Lehman Looks to Unwind Derivatives Trades
Lehman Brothers Holdings Inc.'s legal and financial advisers said Thursday they plan to hire about 200 professionals to help settle the more than 1 million derivatives trades the investment bank entered into before it collapsed last month.

16.10.2008 - NYSE Futures Exchange Selects OCC
US futures exchange NYSE Liffe has chosen the Options Clearing Corp to clear its precious metals futures contracts.

17.10.2008 - Unauthorised derivatives trading costs French bank Caisse d'Epargne €600m
Finance minister orders emergency audit of all country's banks after Caisse indicated team of four or five traders, since disciplined, exceeded their limits

17.10.2008 - Managed Futures Post Modest Gain In Sept.
Investors spooked by their hedge fund portfolios may do well to diversify into managed futures. Commodity trading advisors posted a modest gain of 0.68% last month, bringing their average year-to-date return to 7.86%, according to the Barclay CTA Index.

20.10.2008 - London Firm Launches Carbon Hedge Fund
London-based CF Partners, an environmental finance firm specializing in carbon advisory and trading, is launching a carbon emissions hedge fund strategy next month.

p> 21.10.2008 - Dubai Multi Commodities Centre launches cotton platform
Dubai Multi Commodities Centre has launched Dubai Cotton Centre, a new trading subsidiary, to consolidate its position as a key link in the global cotton supply chain between central Asia and

21.10.2008 - La Fayette Launches Global Macro Fund of Funds
London-based La Fayette Investment Management has launched a niche hedge fund of funds that invests in global macro strategies. read more

21.10.2008 - Chinese giant Citic may suffer 2bn loss from unauthorised currency bet
An unauthorised currency bet may cost Chinese giant 2bn.

22.10.2008 - Citic Pacific scarred by currency bet
Making a one-way bet on the Australian dollar, Citic Pacific is facing a massive loss as the currency tumbles and losing its reputation as a jewel in China's overseas corporate crown.

22.10.2008 - Dow Jones-AIG Commodity Indexes licensed to Eurex to underlie futures and options
Dow Jones Indexes, a leading global index provider, has licensed the Dow Jones-AIG Commodity Index and its nine sector sub-indexes to international derivatives exchange Eurex, to underlie standardised exchange-traded futures and options contracts, which are scheduled for launch in the first quarter of next year.

22.10.2008 - Galena Plans to Start $500 Million Energy Hedge Fund
Galena Asset Management Ltd., the fund unit of closely held commodities trader Trafigura Beheer BV, plans to raise at least $500 million for an energy hedge fund that will start in the first half of next year.

PFGBEST.com Launches Asset Allocation and Management Subsidiary
22-Oct 2008 | "managed futures"

The experience that we have developed in managed futures helped us bring our latest fund, PECTA, to market in 2005. Following our very positive experience ...

PFGBest to launch commodity fund - Chicago Tribune
23-Oct 2008 | "commodity fund"

The fund, which will have multiple strategies and advisers, joins an existing commodity fund in PFGBest .com's Peregrine Asset Management subsidiary.

24.10.2008 - Alpha And Style Persistence For Currency Managers
Institutional investors are increasingly turning to currency traders. This article confirms that past performance is no guarantee of future returns. But there is evidence that managers have a tendency to persistently use the same investment strategy, suggesting that investors may wish to diversify across currency managers.

24.10.2008 - SEC's Cox says supports merger of agency, CFTC
The chairman of the U.S. Securities and Exchange Commission said on Thursday he "strongly" supported a merger between his agency and the Commodity Futures Trading Commission.

26.10.2008 - Market swings expose Chinese offshore derivatives trades
Large fluctuations in global commodity and currency markets have exposed a string of offshore derivatives trades made by large Chinese companies, prompting the government to issue a warning to speculators

28.10.2008 - ETFS to launch carbon futures ETC
ETF Securities will list the world's first carbon exchange traded commodity on the London Stock Exchange later this week, to provide investors with access to the fast growing carbon futures market.

RAB Halts Withdrawals From Second Fund, Seeks Restructuring
28-Oct 2008 | FINalternatives

For the second time in as many months, RAB Capital is seeking to restructure one of its hedge funds. read more

World's first carbon exchange traded commodity to launch on LSE
29-Oct 2008 | Opalesque Commodities Briefing

From Citywire.co.uk: Investors will be able to access the rapidly growing carbon futures market later this week with the launch of the world's first carbon exchange ...

PIMCO Launches Global Fund Using Index Derivatives
29-Oct 2008 | IndexUniverse

MF Global CEO Resigns
29-Oct 2008 | WSJ.com: US Business

Winton's Harding `Worries' About Exchange Shutdowns, Holds Cash
29-Oct 2008 | Managed Futures News

David Harding, founder of $15.5 billion Winton Capital Management LLC, said he is holding more cash on the possibility that exchanges may be closed.

CME remains confident in long-term growth prospects
30-Oct 2008 | MarketWatch.com

(This article was originally published Wednesday) CHICAGO (MarketWatch) -- Trading volume in CME Group Inc.'s core interest rate futures complex continued to slide ...

RAB restructures energy portfolio as sector falls
30-Oct 2008 | Latest news from Wealth Bulletin

RAB Capital is restructuring its second hedge fund in as many months after its energy portfolio lost 56% this year in a peer group that fell about 21%, making it one of at least ...

Global Commodities Investment Forum
31-Oct 2008 | emii.com : Hedge Funds

Mulvaney Appoints Chief Legal Officer
31-Oct 2008 | FINalternatives

Mulvaney Capital Management has appointed Alistair McNaughton as chief legal officer. read more

Wary investors fuel forex jitters
31-Oct 2008 | FT.com

Foreign exchange markets experienced extreme volatility in October as recession-wary investors continued to shy away from risk and parked cash in the relative safety of yen ...

The Hedgeweek Interview - Simon Glossop, CF Partners: "We actively trade carbon from a relative value and arbitrage perspective"
31-Oct 2008 | Hedgeweek News

Simon Glossop, partner and chief investment...

MFC starts futures fund
31-Oct 2008 | Opalesque Commodities Briefing

From Bangkokpost.com: MFC Asset Management will launch its new commodities fund investing in farm futures contracts in early 2009. MFC president Pichit Akrathit said the fund ...

Options trading gains traction in troubled financial times
31-Oct 2008 | Opalesque Commodities Briefing

From Cattlenetwork.com: Though investor confidence may be at or near historic lows, the wild swings in commodity and equity prices in recent months have been nothing short ...

NFA Suspends Missing CTA
31-Oct 2008 | FINalternatives

The National Futures Association announced has suspended SNC Investments and its principal, Peter Son, from membership. read more

Some monthly stats: October has been the worst month for the Commodities index since 1956, best month for the Dollar index since 1991. [CNBC]
31-Oct 2008 | SeekingAlpha.com: Market Currents

Some monthly stats: October has been the worst month for the Commodities index since 1956, best month for the Dollar index since 1991. [CNBC]


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