Investment, Stock News

Emerging Hedge Fund Manager Sentiment Survey Declares Technology As Best Investment

When asked where to invest in the U.S. stock market, hedge fund managers said that Technology (41.0%), Financial Services (31.2%), Consumer Goods (26.2%), Food & Beverage (21.3%) and Defense (21.3%) will be the best performing sectors in 2007. These results were released after VanthedgePoint Group Inc’s second annual Emerging Hedge Fund Manager Sentiment Survey. The hedge fund managers believe a continued “Real state market slowdown” (29.5%) and “inflation” (21.3%) will play the biggest role in how the U.S. economy will fare this year.

Over half of all respondents manage hedge funds with less than million in assets under management, while over 85% currently manage less than 0 million. In addition, emerging hedge fund managers indicated that the most difficult aspect of running a hedge fund business is “raising capital/marketing”.

In 2006, the survey results turned out to be quite accurate. Last year, respondents predicted increasing energy costs and a real estate market slowdown, both of which slowed the U.S. economy in 2006. They correctly predicted that Technology, Raw Materials, Financial Services and Defense would be among the top performing sectors in the U.S., and they narrowly missed the mark by indicating China would be the best performing international market.

Recent financial statistics have shown that pension plans are beginning to out-pace high net individuals with respect to hedge fund investing. At the same time, sub-prime funds struggle in the aftermath of blow-ups such as Amaranth and Bayou.

Here are the Emerging Markets in the headlines:

Investment News – Hong Kong’s Securities and Futures Commission is simplifying the licensing agreements for overseas hedge-fund managers looking to set up shop in the territory.

Reuters – Schroders said on Wednesday its fund-of-hedge-funds division had opened a research office in Hong Kong to try to capitalise on the region’s booming hedge fund sector.

Reuters India – Indian hedge funds will grow rapidly despite a hesitant attitude from the country’s regulators, industry participants said on Tuesday, as investors keep piling money into the nascent industry.

Also, according to Dr. Susan M. Mangiero, CFA, Accredited Valuation Analyst and certified Financial Risk Manager, “Pension fiduciaries are on the hook for making sure that they have done everything possible to avoid a hedge fund meltdown. We want to help plan sponsors before trouble starts. Issues such as independent valuations and good risk controls are essential but that is just the tip of the iceberg.”

Wall Street Journal- Hedge fund JANA Partners has agreed to pay 1.01 billion yuan, or about 2 million, for the equity stake in Shenyang Machine Tool (Group) Co., China’s largest lathe maker.

Global Investing Roundups

MAN AG Buying VW Brazil Unit; Siemens Settles Probe for Billion; Mattel Pays Million for Tainted Toys; Ireland Banks Getting a Bailout; Housing Market Facing Confidence Collapse; Boeing Raises Dividend; U.S. Homes Lose Trillion in Value

German manufacturing and engineering titan MAN AG said it will acquire Volkswagen Truck and Bus from Volkswagen AG (OTC: VLKAY). The 250-year-old MAN AG is Europe’s third-largest truckmaker, and this purchase marks its first major South American investment, Bloomberg reported.

Siemens AG (ADR:SI) will pay more than .3 billion to settle corporate corruption charges that it paid bribes to win major contracts in the United States and Germany. The scandal resulted in the resignations of former CEO Klaus Kleinfeld and ex-CEO and former supervisory board Chairman Heinrich von Pierer, Reuters reported.

Mattel Inc. (MAT) will pay to settle a probe that its Chinese-made dolls and accessories shipped to the United States were made with lead paint. The toys never made it to the shelves, but the world’s largest toymaker will pay million to the 39 states in the suit, Bloomberg reported.

Irish banks will be on the receiving end of a .5 billion (10 billion euro) investment from the Ireland government, MarketWatch reported. The recapitalization plan may take the form of preference or ordinary shares, the government said in a statement. And the list of banks that will receive the cash has not been determined.

The National Association of Home Builders/Wells Fargo housing market index remained at nine in December for the second month in a row, indicative of the pessimistic outlook permeating the market. Index readings higher than 50 indicate positive sentiment about the market. It has slumped below 50 since May 2006 and has been below 20 since April.

The Boeing Co. (BA) yesterday (Monday) increased its quarterly dividend by 5%, or 2 cents, to 42 cents. The aerospace and defense dividend is payable March 6, 2009 to shareholders of record as of Feb. 6, 2009.

Homes in the United States will lose more trillion dollars in value by the end of the year, and nearly 11.7 million American households currently owe more on their mortgage than their homes are worth, Reuters reported yesterday (Monday). “In general, homeowners in most areas we cover are struggling with foreclosures pouring into the market, large amounts of negative equity and dropping home values,” Dr. Stan Humphries, vice president of data and analytics for Zillow Real Estate Market Reports, said in a statement.

To read more click here

Investment News

Global Investing Roundups

Kenya Growth Stalls Quickly; Caterpillar Cuts Pay and Jobs; Wal-Mart Offers .66 Billion for Chile’s Biggest Grocer; Walgreen Falls Short, Cuts Opening Plans; Palm Gets 0 Million Injection; JPMorgan Buys UBS Assets; Oil Falls 6%

Kenya’s economy grew 2.1% in the third quarter, down significantly from the 6.3% gross domestic product growth it posted a year earlier. On top of the global financial crisis, Kenya suffered from post-election violence and a severe drought, Bloomberg reported.
Caterpillar Inc. (CAT) said it will offer buyouts to some employees and cut white-collar pay by up to 50%. Last week, the heavy equipment maker announced plans to lay off 814 works at its engine assembly plant, Reuters reported.
Wal-Mart Stores Inc. (WMT) has made a .66 billion offer for Chile’s biggest grocery chain, Distribucion y Servicio D&S SA (ADR:DYS). Wal-Mart’s outgoing international chief and soon-to-be CEO Mike Duke said in October that Chile’s economy is strong and growing, Bloomberg reported.
As its quarterly profits missed estimates, drugstore operator Walgreen Co. (WAG) said it is cutting back on plans to open more stores. Profit fell to 8 million, or 41 cents a share, in its fiscal first quarter ended Nov. 30, Reuters reported.
Palm, Inc. (PALM) yesterday (Monday) secured a much needed 0 million equity investment from Elevation Partners, a venture capital firm that includes Bono, lead singer for the rock band U2, BetaNews reported. Palm a maker of mobile electronic devices, will use the money to help launch a smartphone that will be compete with Apple’s 3G iPhone.
UBS AG (UBS) will sell its Canadian energy operations and global agriculture business to JPMorgan Chase & Co. (JPM), Reuters reported. JPMorgan is buying Canadian Energy, UBS’ Canadian-based commodities energy business, as well as UBS’ London-based Global Agricultural Commodities business.
Light, sweet crude for February delivery fell .45, nearly 6%, on the New York Mercantile Exchange yesterday (Monday) to settle at .91 a barrel. Crude prices have now fallen 70% from their July peak of 7.47 a barrel.

Mathematical Concept Used by Gov’t Code Breakers Can Predict the Market’s Movement…

The CIA uses it to crack codes. The government uses it for technological superiority. The B-2 bomber couldn’t fly without it. And for those that know how, it can be used to “speak the language” of the market.

But cutting through the “noise” and seeing through to the underlying hidden order of the markets, this strategy can be used to predict the movement of any investment – to the penny – with 95% accuracy.

And now for the first time, this strategy is being offered to a few investors as a reliable, emotion free guide to avoiding losses and making big money in these turbulent markets.

Read More

Investment News