Mark Axelowitz, director of wealth management at Morgan Stanley Smith Barney, and adviser to very high net worth individuals, was recently on CNBC's Fast Money program discussing trends that he has noticed among ultra high net worth individuals (see CNBC article).

Source: CNBC Video
Just as many investors are jumping back into stocks, essentially afraid that they may have missed the recent rising market, ultra high new worth individuals are more cautious, and appear to be worried about inflation, the dollar, and of course, taxes. This macro-economic perspective has kept the rich from chasing the recent rally, and instead has them investing heavily in fixed income instead of equities as they shy away from diving into the market with both feet. The rich stay rich for a reason. Maybe it is time to pay attention.

The announcement a few days ago by President Obama to increase fuel consumption by 2016 (see CNBC article) still has some scratching their heads, given the head-winds the automakers already face. Nonetheless, it is what it is, so you might as well start considering investment opportunities. A few days ago, Phil LeBeau, the CNBC Automotive Reporter, posted a nice article at his Behind The Wheel blog outlining a few companies that are poised to take advantage of the lower emission and higher fuel economy standards coming down the pike (see the post). The main idea behind the investment opportunities is that to lower emissions and increase mileage, cars will need to become lighter and/or more efficient. Five companies that could offer help in these areas include the following:

• Alcoa (AA): positioned for the push for lightweight steel and aluminum, while still maintaining strength.

• Borg Warner (BWA): maker of turbochargers that will give engines the desired performance while still providing for fuel efficiency.

• Eaton (ETN): auto parts supplier who makes camshafts and valve trains that help improve combustion engine efficiency for existing non-hybrid/electric designs.

• Honeywell (HON): for the same reasons as Borg Warner.

• Magna International (MGA): leader in hydroforming, which allows parts, including body panels, to be lighter.

These companies have also been pumped on CNBC's Fast Money recently, causing them to run-up a little, although each are still off their 52-week highs (then again, who isn't). A few are also still consolidating somewhat after the October 2008 sell-off, allowing for some opportunity to move. Of course, in this economy and market, anything related to automakers has to be given pause and due diligence, but each is still worth a look.

Even hedge funds that are doing well are seeing withdraws (see Reuters article). Why sell a good fund? As it turns out, the main sellers could be those that operate fund-of-funds. As a result of other funds (holdings) being down, redemption request at FoF are causing selling across the board, dragging down performing funds as well.

There is an interesting article from Cam Hui at SeekingAlpha discussing the need for hedge funds to return to basics, and for investors to rethink their expectations. Of interest from the article is the quote: "Hedge fund investors found out what they had wasn’t a contract with a hedge fund manager, but a call option on a management contract. When the incentive fees dried up, the manager packed up and went away." This gives me an idea. How about selling an option on ......, never mind.

Rumors of a Goldman / Citi merger have changed to a Goldman / Morgan Stanley merger (see Here Is The City News article). Still waiting for the Goldman / Yahoo / Microsoft rumor to surface.

I was just kidding about the 10 million. I did not want a bonus afterall (see Clusterstock article). Merrill and/or Thain doing damage control.

Fleckenstein, a regular guest on Fast Money, is calling it quits, or at least closing his short-only portfolio (see FINalternatives article). He is planning to open a new fund (not a hedge fund) that would be available to retail investors (ie., everyone). In a blog post, Fleckenstein states "I now (sic) longer want to run a short-only hedge fund, as it is very stressful, nerve-wracking and generally not very much fund (sic)." Then again, the money was nice .........

There is an interesting New York Magazine article on Jim Chanos. Even though he seems to be on CNBC just about every time you turn around, the article provides a little more detail on his background, and provides some insight into his approach. Interesting read.