Cambridge Varsity Online – Clare College has borrowed £15 million to invest in the stock market. The unprecedented inflation-linked loan is due to be repaid in 2048 and the College expects to make a profit of around £36 million.

Clare has already invested £3.5 million and aims to have invested the full amount within two months. Clare’s Bursar Donald Hearn said he hoped the market would have bottomed out by then: “We think the market is going to go down a bit more, but may begin to recover once the FTSE drops below 3,250.

“We’re borrowing at an interest rate of 1%, and we’re reasonably confident of a useful profit. The money will only be invested in funds which track stock market indices, and will be globally diversified including emerging markets,” he said.‘

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Tags: chief-executive, emerging-market, guerin, tenn, third-party, tudor, upfront, yen

Reuters – Hedge fund manager PMA said on Wednesday its flagship macro vehicle focusing on foreign exchange and interest rate markets returned 4.83 percent in October, even as the global financial crisis ravaged many of its peers.

The unit of SPARX Group Co Ltd, Japan’s largest listed hedge fund manager, said the PMA Harvester Fund managed by macro-strategy chief investment officer Shun Hong Liu had now returned 21.33 percent year-to-date.

"Given that we anticipate that market conditions will remain difficult in the near-term, our strategy will be to remain light and nimble in our positions," the CIO said in a statement.

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Tags: current-value, farhat, handful, henry-m-paulson, investment-arm, mitchells, murdoch, relative-newcomers, tenn, when-retirees

Bloomberg – The Australian and New Zealand dollars rose as Australian stocks advanced on anticipation interest-rate cuts worldwide will bolster global economic growth.

The currencies advanced against the yen as Australia’s S&P/ASX 200 Index gained for the fourth day, its longest winning streak since Aug. 12. Economists forecast the Reserve Bank of Australia will reduce its benchmark rate to 5.5 percent tomorrow after house prices fell in the third quarter and manufacturing contracted at a record pace in October.

“The Aussie dollar has been following equity markets quite closely on global risk sentiment,” said Jim Vrondas, manager of corporate business at online foreign-exchange dealer OzForex Ltd. in Sydney. “If other Asian equity markets rally we might see a bit of late Asian, early European buying of the Aussie.”

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Tags: australia, david-bryant, hurricane-gustav, martin-rapaport, nyse, plunge, repossessed-properties, russian-markets, sovereign, tenn, venom