Wed, Sep 3, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

News Briefs

Tuesday, March 10, 2009

NEWS BRIEFS

Dunn's Is Top Insurance Fund

A managed futures pool, Dunn's Insurance Dedicated Futures Fund LLC, was the best performer for 2008 in a specialized database of funds for variable-return life insurance wrap investing. Dunn's earned 73% for the year and has a compound annual return of 21% since inception in November 2005.

The database, covering insurance-dedicated vehicles in a wide variety of hedge fund and long-only strategies, belongs to Compensation Strategies Inc. The 2008 returns for 63 funds in the database ranged from (-)48% to 73%, according to Bill Dreher of Compensation Strategies. He said that with a couple of exceptions the funds did better than major market indexes.

Dunn's Insurance Dedicated Futures Fund is a multi-advisor pool which allocates its assets to six systematic trading programs, varying from short-term to long-term and from trend-following to pattern-recognition. All of them trade exchange-listed futures contracts. Dunn Capital Management Inc. licenses the fund's systems and provides trading and back-office services.

To be treated as a life insurance policy for tax purposes in the US, funds have to be dedicated to this kind of investing. The clients typically invest through insurance companies.

ICE Starts CDS Clearing

Having received permission from the Federal Reserve and the Securities and Exchange Commission last week, the IntercontinentalExchange began to process and clear credit default swap indexes. The exchange started with North American Markit CDX indexes; the clearing of liquid single-name CDS is expected in the following months.

The use of CDS, a form of insurance against the default of debt, grew immensely during the credit boom and is blamed for large losses at financial companies, notably AIG, the insurance giant that has been bailed out repeatedly by the US government in recent months. Regulators have called for central clearing of CDS and other exchanges such as CME are expected to get approval to provide this service.

ICE chief executive Jeffrey Sprecher says the clearing system is designed to further enhance well-functioning CDS markets by reducing counterparty and systemic risks and increasing transparency and capital efficiency.

The exchange has entered into an agreement with Markit to produce the daily settlement prices required for mark-to-market pricing, margining and clearing.

Copper Gains Continue

Copper futures went up 10% in the past week as China, the largest consumer of the metal, reportedly stockpiled copper and traders expected greater demand from Chinese stimulus spending. Short sellers covered their positions, giving a further boost to the price.

CME to Clear S&P Goldman Sachs Index Swaps

CME Group has signed a licensing agreement with Standard & Poor's to clear swaps on the S&P GSCI Excess Return Index, a widely used commodity benchmark. Centralized clearing of over-the-counter swaps is expected to appeal to customers because it minimizes counterpart risk, a major concern since the collapse of Bear Stearns and Lehman Brothers.



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius