Rise in rail volumes bodes well for economy

Railroad shipments are the highest in almost three years, helping to defy concerns about a double-dip recession.

Total rail volumes excluding grain and coal averaged 381,831 carloads in August, the most since October 2008, according to data from the Association of American Railroads in Washington. These shipments represent the bulk of materials for industrial production, so rising volumes show the economy is still growing, according to Art Hatfield, a transportation analyst at Morgan Keegan & Co. in Memphis, Tenn.

"We’re not seeing declines in rail volumes that are synonymous with a recession," Hatfield said. "We remain in a slow-growth environment."

California puts cash in hedge-fund startup

The California Public Employees’ Retirement System, the largest U.S. pension, invested for the first time in a hedge-fund startup, putting $100 million into a Toronto-based firm.

The deal with Breton Hill Capital, which invests in equities and currencies as well as commodity and financial futures, represents Calpers’ first foray into seed funding for a money manager, Brad Pacheco, a Calpers spokesman, said last week.

Calpers, with $223.8 billion in assets, earned almost 21 percent on its investments in the 12 months through June, its largest gain in 14 years. The fund invests $5.3 billion, or 2.4 percent of its portfolio, in hedge funds, according to a statement.