Archive for January, 2011

US insider trading probe takes toll on small funds – Reuters

Monday, January 31st, 2011

Mon Jan 31, 2011 4:50pm EST

* STG Capital closes even though fund was up last year

* Hedge fund did business with firm under scrutiny

* Barai Capital closes, was raided in November

By Emily Chasan and Matthew Goldstein

NEW YORK, Jan 31 (Reuters) – Technology-focused hedge fund STG Capital, which did business with an expert network firm that has figured prominently in an ongoing U.S. insider trading investigation, is shutting down, said people familiar with the situation.

Steven T. Glass, the founder of STG, which once had more than $200 million under management, notified investors last week he was shutting down his fund, said one investor familiar with the situation, who declined to be identified.

STG is the second New York hedge fund to shut down in the wake of a series of arrests of people associated with Primary Global Research, a California-based expert network firm that matches hedge funds with industry consultants.

The Wall Street Journal reported on Monday that Barai Capital Management, a small $80 million hedge fund raided by federal agents in November, is also closing.

Four people familiar with the investigation said both STG and Barai regularly employed Primary Global consultants to gather information on tech stocks.

Glass said in an email that his fund’s relationship with Primary Global had nothing to do with the closing, but he declined to elaborate.

“You are factually incorrect in much of that, sir,” he said. “As I informed our investors last week, assets were not at a critical mass to sustain the business.”

SNAIL’S PACE

Glass opened the fund in 2002 after a stint as a trader at Kingdon Capital Management. He also previously worked at Credit Suisse Group AG (CSGN.VX) and Deutsche Bank AG (DBKGn.DE). Glass’ fund, which most recently had about $150 million, was up about 8 percent last year, said an investor source. That compares with gains of about 17 percent in the tech-heavy Nasdaq .IXIC.

According to SEC filings, some of STG’s top stock holdings as of Sept. 30 were STG Semiconductor Corp (LSCC.O), Qualcomm Inc (QCOM.O) and Apple Inc (AAPL.O).

The closing of STG Capital was reported last week by Dealbreaker.com. The popular Wall Street blog did not offer any explanation for the closing of the fund, which takes its name from its founders initials.

Neither Glass nor anyone associated with STG has been charged in the investigation, which involves allegations of industry consultants passing on confidential corporate information to hedge fund traders and analysts.

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Feds Push New Alcohol Detection Technologies in Vehicles – Inside Line

Monday, January 31st, 2011

Just the Facts:
The U.S. Department of Transportation is ramping up the push for advanced drunk-driving prevention technologies with the goal of integrating them into vehicles in 8-10 years.
A touch-based system called “tissue spectrometry” that senses blood-alcohol concentration is under evaluation.
The feds say “the goal over time is to equip all passenger vehicles in the U.S. with the technology.”

WASHINGTON — Saying that it has arrived at “a new frontier in the fight against drunk driving,” the U.S. Department of Transportation on Friday outlined plans for new alcohol-detection technologies in vehicles. It said the goal is to integrate such technologies into vehicles in 8-10 years.

The new Driver Alcohol Detection System for Safety includes a touch-based system called “tissue spectrometry” that senses blood-alcohol concentration. A second option is “distant spectrometry” that uses part of the infrared light spectrum to detect alcohol concentration in the driver’s breath. If the system detects that the driver is drunk, the vehicle will be disabled.

“The goal over time is to equip all passenger vehicles in the U.S. with the technology, since without full implementation the benefits will be reduced,” said the National Highway Traffic Safety Administration (NHTSA) in a statement.

The federal government is in the middle of a five-year, $10-million cooperative effort with automakers to develop such technologies. The NHTSA said it will kick off “practical demonstrations of one or more of the alcohol-detection technologies” later this year. The automakers involved in the project include BMW, Chrysler, Ford, GM, Honda, Hyundai/Kia, Jaguar/Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Toyota, Volkswagen and Volvo.

“The [alcohol-detection] technology is not intended to prevent anyone from having a glass of wine or an alcoholic beverage for dinner,” said the NHTSA.

It said the cost per vehicle has not yet been established, but that such technology could be “voluntarily installed as an option for new cars.”

The NHTSA said 10,839 people died nationwide in crashes involving a drunk driver in 2009. These deaths make up 32 percent of all fatal crashes, it said.

Inside Line says: Look for these new systems to become a reality in cars and trucks by the end of the decade. — Anita Lienert, Correspondent

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New Technology Measures Emotional Responses to Web Videos

Monday, January 31st, 2011

Startup Affectiva is building technologies to measure emotion in web video. It is technology the founders, MIT scientists Dr. el Kaliouby and Dr. Rosalind Picard, are looking to perfect with the help of a newly awarded $150,000 grant from the National Science Foundation (NSF).

Affectiva, a commercial rendering of MIT’s FaceSense (also NSF-funded) technology, was originally dreamt up to help those with autism spectrum disorders better understand emotion. The founders now see the potential of opening their emotion measurement technology for market research, product testing and development, clinical use and other academic purposes.

In its current web state, Affectiva analyzes a single facial expression associated with happiness: the smile. Viewers, who must grant the application permission to “watch them,” tune in to a film trailer. The software tracks when the user smiles, and he or she can see the complete “Smile Track” once the viewing is complete.

This early prototype is centered around the smile, but Affectiva’s software is capable of analyzing multiple expressions and associating them with states of minds. More of those technologies will be carried over to the web thanks in no small part to the NSF grant.

With the new funds, the team now has a six-month window to move Affdex, its facial expression recognition technology, to a cloud environment. The company is also eligible for $600,000 in additional grant funding and has enough runway to go without outside funding for the immediate future.

Image courtesy of iStockphoto, Yakobchuk.

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Obama seeks Internet kill switch for U.S. – Examiner.com

Monday, January 31st, 2011

While the Middle East crisis continues to simmer or boil over in Egypt’s case, American lawmakers revisit the need to implement an Internet kill switch for the U.S.

The need for such aggressive measures by any government has played out in recent days and U.S. lawmakers have dusted off their playbooks and will take a hard look at the need to “protect” its constituents from a so-called cyber attack.

Leading the charge are Senators Joe Lieberman (I-Conn) and Susan Collins (R-Maine) who point to WikiLeaks as a reason to control the Internet cyber space. The bill titled, “Protecting Cyberspace as a National Asset Act,” would give the president the authority to track critical cyber-infrastructure lists. This legislation would give the president the ability to turn off the Internet without any judicial review. Something the world is now witnessing in Egypt.

However, Senator Collins claims the “switch” would be different in the United States. “It would provide a mechanism for the government to work with the private sector in the event of a true cyber emergency,” she explained. “It would give our nation the best tools available to swiftly respond to a significant treat.”

Does she mean a threat like a country-wide uprising against an out-of-control government?

The unprecedented crackdown of Egypt’s dictator, Hosni Mubarak, to shut off the Internet, outside TV and cell phone services prompted immediate criticism from the Obama Administration. It’s ironic they are asking for the same “kill switch” technology for Americans.

Experts agree that if the U.S. government shut-down the Internet the ramifications would be far-reaching. A majority of the population currently uses the World Wide Web to get its news coverage as well as monitor their financial accounts or pay their bills.

American’s need to learn from Egypt’s hard-line with internet services says Dan Costa of PC Magazine.

“The surprising thing isn’t that a corrupt, authoritarian regime would launch this kind of state-sponsored denial off service attack on its own citizens,” Costa said. “Nor that it is willing to jeopardize its economy by cutting its business off from the world markets. No, the thing that surprises me is that the U.S. government has plans for its own Internet ‘kill switch.’”

For more stories; http://www.examiner.com/county-political-buzz-in-san-diego/kimberly-dvorak

© Copyright 2011 Kimberly Dvorak All Rights Reserved.

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Could Egypt Happen Here? Obama’s Internet “Kill Switch”

Monday, January 31st, 2011

Egypt pulled the plug on the Internet. A Senate bill would give Obama the power to do the same–or something like it.

Egypt unrest in Cairo

First it was Facebook. Then it was Twitter. Now, in the face of massive protests in the streets of Cairo and throughout the country, Egypt has pulled the plug on the entire Internet for its citizens. As this chart from Arbor networks shows, Internet traffic mounted steadily in Egypt steadily over several days, then suddenly and precipitously dropped to nil at 5:20 PM EST yesterday.

The U.S. has condemned the move–in a tweet, no less.

Such a flagrant violation of communications–possible only in the less free corners of the world, right? But since last summer, when a Senate bill was introduced by Joe Lieberman, the U.S. has been considering an Internet “kill switch” of its own. Full text of the bill, “Protecting Cyberspace as a National Asset,” can be found here. “For all of its ‘user-friendly’ allure, the Internet can also be a dangerous place with electronic pipelines that run directly into everything from our personal bank accounts to key infrastructure to government and industrial secrets,” Lieberman said in June.

As recently as three days ago, CNET reported on a “renewed push” to implement the bill. Plenty of people criticized the first version of the bill, but the latest version has raised even more red flags. The revision bans judicial review over executive decrees. “The country we’re seeking to protect is a country that respects the right of any individual to have their day in court,” Steve DelBianco of the NetChoice coalition told CNET. “Yet this bill would deny that day in court to the owner of infrastructure.”

Now, the purpose of the bill is not, of course, to allow the president to undermine the freedom of speech, or to limit the ability of people to protest. The bill (which doesn’t use the term “kill switch” itself) is in the name of cybersecurity, and allows the president to declare a state of national cyberemergency. The legislation calls for the establishment of a “list of systems or assets that constitute critical infrastructure.” Homeland Security would only add systems to the list if 1) disruption of the system could cause “severe economic consequences,” 2) the system is “a component of the national information infrastructure,” and 3) the “national information infrastructure is essential to the reliable operation of the system.”

It’s a bill that has worried proponents of free business more than proponents of a free society. OpenMarket.org, for instance, calls the measure a “kill switch for capitalism.”

Few people are likely lighting fires to police vans in Egypt to protest a threat to corporations’ bottom lines. For some of the best live coverage of events as they unfold in Egypt, check out this stream at Al Jazeera English.

Read more of our coverage on the protests in Egypt.

[Top image: Al Jazeera English]

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New Car Technology Tells Tailgaters To Back Off – NPR

Monday, January 31st, 2011

January 31, 2011

Audio for this story from All Things Considered will be available at approx. 7:00 p.m. ET

 

Ford's vehicle communications technology enables cars to talk to each other wirelessly using a short-range network.Enlarge Courtesy of Ford Motor Company

Ford’s vehicle communications technology enables cars to talk to each other wirelessly using a short-range network. The system alerts drivers to a change in traffic patterns with red lights on the dashboard and an audible tone.

Courtesy of Ford Motor Company

Ford’s vehicle communications technology enables cars to talk to each other wirelessly using a short-range network. The system alerts drivers to a change in traffic patterns with red lights on the dashboard and an audible tone.

In 2009, more than 30,000 Americans were killed in car crashes. Most of those accidents were avoidable — the result of driver error.

Now, the auto industry wants to cut down on traffic deaths by using vehicle-to-vehicle communications technology.

The technology enables cars in close proximity to one another to share information wirelessly. The premise behind it is that most crashes are avoidable if drivers have enough time to react.

This isn’t exactly a new idea. A General Motors film from the 1939 World’s Fair imagined a technology similar to what’s finally making it onto roads today.

Avoiding Pileups

In an empty parking lot in Washington, D.C., Ford Motor Company engineer Joe Stinnett demonstrates how its “intelligent vehicles” technology works today.

He follows two other cars closely — too closely. It’s the kind of scenario that often leads to 60-car pileups.

“So, we’re just going to drive down to the end of the track here,” Stinnett says. “At the end of the track, the lead vehicle is going to hit the brakes. So, you can imagine if this was a foggy or snowy day with limited visibility, this would be even worse.”

All three cars are equipped with a small GPS and Wi-Fi unit, just like inside a smart phone.

Ford is investing heavily in the technology and plans to launch a fleet of prototypes equipped with it this spring. The cost is pretty cheap — about $100 per car. And it lets cars communicate things like latitude, longitude and speed with one another at a range of about 1,500 feet.

“They’re monitoring the position of all the vehicles around you and determining who is an immediate threat to your vehicle — and what type of threat that vehicle is,” Stinnett says.

An alarm sounds in Stinnett’s car because he’s following the other vehicles too closely.

“So, basically, what you saw was, you saw the lead vehicle’s brake lights go off, and then you immediately saw the alert go off in this car — even before you had this vehicle ahead of you, before you saw their brake lights,” he says. “So, you get that advanced alert.”

Installing The Technology In All Cars

Ford is working with most of the world’s other major automakers to turn this technology into a basic safety feature of every car.

This vehicle-to-vehicle communications technology will be most effective if pretty much every car on the road is equipped with it.

James Sayer, a safety expert at the University of Michigan Transportation Research Institute, says giving drivers a few extra seconds of warning before a crash could dramatically reduce traffic accidents.

“It still is the case that the weakest link is the driver,” he says. “The vast majority of errors in driving that lead to crashes are because of the driver. It’s rarely the case that the wheel falls off.”

Privacy Concerns

There is one concern about this technology that the auto industry is very sensitive to: privacy.

After all, cars could soon be telling every other nearby car — and who knows who else — details about location, speed and where they’ve been in the past five minutes.

Ford and other companies are trying to make that data as anonymous as possible.

“The fact that we walk around the streets with smart phones all the time means that, essentially, the phone companies can track where we are if they wanted to, so I think there’s lessening concern on the part of the public about the privacy,” Sayers says.

Limited trials of vehicle-to-vehicle communications technology will start later this year. If they’re a success, the government could mandate that all cars be equipped with these devices before the end of the decade.

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