The new unit will provide standard commercial lines insurance services and expertise to several businesses in the Pacific Northwest by utilizing the independent agency system. Berkley has been associated with this region through the Boise regional office of Continental Western Group, which will become a branch of Berkley North Pacific Group.

The company has appointed Jeffrey R. Dehn as President of Berkley North Pacific Group. He has over 34 years of experience in the insurance and financial services industries and over 25 years of expertise in the Pacific Northwest market.

Berkley, which competes with companies such as Berkshire Hathaway Inc. and The Travelers Companies (TRV), posted second-quarter core earnings of 60 cents per share, in line with the Zacks Consensus Estimate.

However, the company has experienced a decrease in premium writings in the second quarter. This premium compression was due to lower business written in Regional, Alternative and Reinsurance segments. New business volume remains curtailed as a result of increased competition and downward pressure on pricing.

We are encouraged with this expansion of Berkley in the Pacific Northwest as such expansions will be accretive to the company's earnings. Recently, WRB has also increased its share repurchase authorization to 10 million shares of common stock. This represents about 6% of the company's outstanding shares at Jun 30, 2009.

Moreover, WRB has enjoyed a strong balance sheet and lack of material exposure from legacy issues, such as asbestos and environmental liabilities. These have resulted in additional visibility to its earnings stream in recent years.

Goldman Sachs Group Inc. (NYSE:GS), which passed the government's stress test, said it plans to soon repay the $10 billion of bailout money. Nevertheless, banking analyst Meredith Whitney warned, "the recessionary environment is very difficult," due to problems looming with credit cards and mortgage originations.

Oil and gas shares rose 8.7% and basic materials were up 6.5% as investors began to bet on the early stages of improved spending by businesses.

Exxon Mobil Corp. (NYSE:XOM) and Schlumberger Ltd. (NYSE:SLB) led energy companies in the S&P 500 to an 8.5% advance. Exxon added 4.1% to $70.80 and Schlumberger gained 12% to $56.53.  El Paso Corp. (NYSE:EP) was the leading gainer in the group, rising 27% to $9.03, after the company reported better-than-expected profit on expanding lines and hedging correctly on energy prices.  General Motor (NYSE:GM) led the declining issues on the DJIA after reporting a huge first-quarter loss that pushed it closer towards bankruptcy.  McDonald's Corp. (NYSE:MCD) reported another month of impressive comparable sales with April recording a 6.9% jump in same-store sales.

A U.S. Labor Department report Friday said non-farm payrolls declined 539,000 in April, beating economists' projections for a decline of 600,000. Figures for March were revised to show a steeper decline of 699,000.  Unemployment rate rose to 8.9% from 8.5% in March.    

Fed Chairman Bernanke speaks tonight on the stress tests. On Wednesday, April retail sales are due for release, and are expected to have declined 0.1% following March's 0.2% drop. Although economists doubt the ongoing strength of the consumer, Friedman Billings, Ramsey on Friday lifted the price targets on several retailers including Abercrombie and Fitch (NYSE:ANF), Ann Taylor (NYSE:ANN), and Pacific Sunwear (NASDAQ:PSUN). On Friday consumer price numbers are expected to show annual headline numbers at their lowest since January 1955, off 0.6%, with core CPI up 1.8% on an annualized basis. Among key companies slated to release earnings are JC Penney (NYSE:JCP), Macy's (NYSE:M), Nordstrom (NYSE:JWN) and Wal-Mart (NYSE:WMT).

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Global Equity Funds list.

3 Solid Picks

First Eagle Global A (SGENX) seeks long-term capital growth by investing in a wide range of asset classes from markets in the United States and around the world. It has a flexible approach and invests in securities regardless of market capitalization, sector or asset class.

The fund invests in undervalued common stocks, bonds, preferred and convertible securities and, at times, real estate and gold-related investments. It has topped its benchmark index in terms of total annual returns in the 1-, 3- and 5-year periods.

Berkshire Hathaway Inc. (BRK.A) SMC Corp. and Sodexho Alliance are among the fund's top holdings.

ING Global Value Choice A (NAWGX) was incepted in April 1993 and seeks long-term capital appreciation.

The fund invests in undervalued companies both U.S. and overseas that possess catalysts to improve profitability and/or unlock value. As of October 2008, its turnover ratio was 73%.

Unit holders have to make a minimum initial investment of $1,000 to enter the Zacks#1 Rank ("Strong Buy") shares. The fund distributes dividends and capital gains, if any, annually.

Mutual Discovery A (TEDIX) seeks capital appreciation. It may invest significantly in foreign equity and debt securities and participations in government debt.

As of March 31, 2009, the fund had invested 49% of its assets in stocks, 46% in cash and 4% in bonds. It has an expense ratio of 1.30%. It distributes dividends semi-annually and capital gains annually.

The fund's key holdings include UST Inc. (UST), British American Tobacco Plc (BATS) and Groupe Danone.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

T2 Capital Partners LP | Hedge Fund Notes

• Alliancebernstein Holding Lp (AB)
• Ambassadors International Inc (AMIE)
• American Express Co (AXP)
• American Italian Pasta Co (AITP.PK)
• American Oriental Bioengineering ... (AOB)
• Anheuser-Busch Cos Inc (BUD)
• Annaly Capital Management Inc (NLY)
• Atlas Pipeline Partners Lp (APL)
• Atp Oil And Gas Corp (ATPG)
• Barnes And Noble Inc (BKS)
• Berkshire Hathaway Inc (BRK.A)
• Borders Group Inc (BGP)
• Celebrate Express Inc (BDAY)
• Chesapeake Energy Corp (CHK)
• Cisco Systems Inc (CSCO)
• Clearpoint Business Resources Inc (CPBRU)
• Contango Oil And Gas Co (MCF)
• Delias Inc (DLIA)
• Ebay Inc (EBAY)
• Echostar Corp (SATS)
• Emc Corpmassachusetts (EMC)
• Fairfax Financial Holdings Ltd (FFH)
• Federal National Mortgage Associa ... (FNM)
• Goldman Sachs Group Incthe (GS)
• Greenlight Capital Re Ltd (GLRE)
• Hennessy Advisors Inc (HNNA.OB)
• Jamba Inc (JMBAW)
• Kinross Gold Corp (KGC)
• Microsoft Corp (MSFT)
• Odyssey Re Holdings Corp (ORH)
• Petmed Express Inc (PETS)
• Pf Changs China Bistro Inc (PFCB)
• Photochannel Networks Inc (PNWIF.PK)
• Premier Exhibitions Inc (PRXI)
• Proliance International Inc (PLI)
• Prospect Capital Corp (RK8.BE)
• Research In Motion Ltd (RIMM)
• Resource America Inc (REXI)
• Seabridge Gold Inc (SA)
• Sears Holdings Corp (SHLD)
• Southwestern Energy Co (SWN)
• Starbucks Corp (SBUX)
• Summer Infant Inc (SUMRU)
• Syneron Medical Ltd (ELOS)
• Target Corp (TGT)
• Travelcenters Of America Llc (TA)
• Universal Stainless And Alloy (USAP)
• Weyco Group Inc (WEYS)
• Whole Foods Market Inc (WFMI)
• Winn-Dixie Stores Inc (WINN)

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More from Jason in Money Morning:

Last month, the iconic investing guru once again displayed his enthusiasm for railroad stocks by adding to his already sizeable stake in Burlington Northern Sante Fe Corp. (NYSE:BNI). After picking up 7.85 million shares of Burlington in early October, Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A, BRK.B) last week added another 825,000 shares to its holdings at a price of $79.65 apiece

Buffett has been bullish on railroad stocks for the past year. Buffett made his…

I guess the stock jockeys figured they weren't going to get any bad news out of the credit markets, which were closed, so no news is good news!! The rally was certainly welcomed, and hopefully some of the gains will stick today as we return to a normal trading environment.

And I guess some of the credit for the stock rally has to go to finance ministers around the globe who finally agreed on a plan which seems to be able to work. The leaders of a majority of the worlds largest economies borrowed a page from Warren Buffet's playbook and decided to invest directly into some of their largest financial institutions. The Bush administration announced it would invest $125 billion in nine of the biggest US banks. The US move came after France, Germany, Spain, the Netherlands, and Austria committed $1.8 trillion to guarantee interbank loans and take equity stakes in European banks.

The investment represents a new approach for US Treasury Secretary Henry Paulson, who first promoted a bailout targeted at buying up illiquid mortgage-related assets. The government will obtain its stakes by purchasing preferred shares with warrants similar to investments that Berkshire Hathaway Inc. made recently in Goldman Sachs and General Electric. The move could be just what was needed to 'unfreeze' the credit markets and restore some liquidity in the markets.

I really think the new president should do all he can to try and convince Warren Buffet to at least take an advisory position in the new administration. Now that we have followed his lead on the $125 billion we should see what he suggests for the rest of the $700 billion 'rescue' package. Just think, with his guidance maybe the US taxpayers can come out of this whole episode with a bit of a profit!

The move got the backing of former Federal Reserve Chairman Paul Volcker who said the inevitable recession in the US would be made 'more manageable' by the new government plans to invest directly into American banks. The bailout measures were 'distasteful' and 'not consistent with a capitalistic system,' Volcker said at a lecture in Singapore today. 'But however distasteful, they are necessary to restore stability to the financial system.' But Volcker also warned that the global financial system is in 'intensive care' and will remain there for a considerable time before things return to normal.

The largest mover in the currency markets yesterday was the Australian dollar which has surged up 12% vs. the US$ since late last week; the biggest two day gain since it began trading freely in 1983. The Australian dollar gained as investor's confidence was restored and stock markets rallied. Australian Prime minister Kevin Rudd announced a A$10.4 billion spending package aimed at bolstering Australia's economy, adding to his Oct. 12 pledge to shore up the nation's banks. These moves by the Prime Minister should provide some support under the Australian dollar which had been falling fast. But the Aussie dollar will likely still be subject to some volatile swings, as investors continue to buy the Aussie dollar on carry trade investments, which have proven to be very erratic.

With investors moving back into carry trades, and some confidence returning to the equity markets, the Japanese yen fell against the higher yeilders. The yen headed for a record decline vs. the Australian dollar, but fell less against the US$. Japan's currency has become an excellent gauge of risk appetite in the markets, and the currency has risen as investors exited highly leveraged 'carry trades' over the past few months. But risk appetite has returned as we have exited the 'panic mode' and investors have started to move money back into these leveraged trades.

The Bank of Japan said it will hold an unscheduled monetary policy meeting today to discuss ways to make it easier to add funds to money markets. The bank said yesterday it's considering offering an unlimited amount of dollars to financial institutions, following a move by European counterparts to provide lenders with as much of the currency as they want to reduce short-term borrowing costs.

This recent flood of US$ into the markets has seemed to stabilize them, but what will it do to inflation in the US? One of the first lessons in Economics is that increasing money supply causes an increase in inflation. The billions or trillions (I can't keep up with all of the 'rescue' packages they keep announcing) of US$ which have been placed into the markets will eventually create a big up tick in inflation. And the huge amount of dollars which are being printed and pumped into the credit system will undoubtedly lead to an erosion of the value of the dollar. Simple supply and demand tells you that if we continue to throw unlimited supplies of US$ into the market, the value of these dollars will decrease in value.

And who is holding most of these dollars? China! China's foreign-exchange reserves rose to a world record $1.906 trillion at the end of September. Currency holdings rose 32.9% from a year earlier, the People's Bank of China said on its website yesterday. These reserves have helped to strengthen China's finances as the credit crisis threatens to trigger a global economic slump. The world's fourth biggest economy can still expand 10 percent this year and 9 percent in 2009 according to the central bank. Close to $2 trillion in foreign reserves provides China with a strong foundation and more room to adjust policies to enable it to maintain relatively fast growth. The worlds economic engine will continue to purr despite the slowdown in the US and Europe. Internal demand among these fast growing Asian economies will take the place of some of the exports which will undoubtedly slow. I look for the Chinese currency to continue to be a rock solid performer, with no big movements either way.

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