Hedge Fund Communications
Hedge Fund Crisis Statements
(http://HedgeFundBlogger.com) Below are a series of excerpts from hedge fund manager communications over the past several months. I've posted some of these to my site before in the past here but below are some excerpts again:
THE events of September have had a profound negative effect on our performance. On behalf of the team, we apologise for this outcome. It is emotionally and financially draining that after eight solid years the fund should be so damaged by the failed global monetary system. The speed of regulatory intervention, the mania of negative business coverage and panic have clearly hurt our mid-term investment plans.
WE never claim to be able to invest at the bottom. So we always consider it inevitable that we’ll buy on the way down, and that’s what we’ve done to great effect in the past. Our funds’ recent losses prove we’ve been doing just that. In other words, we’re grabbing at falling knives. Others may refuse to do so and instead wait for the dust to settle and the uncertainty to be resolved. We consider it our job to catch falling knives - in a careful, skilful manner.
REGRETFULLY, we did not foresee the financial disaster that was to unfold in September. The financial crisis dramatically raised the cost of borrowing and reduced the availability of credit to market participants, materially reducing the value of cash assets. The decision of regulators to ban the short-selling of equities created material dislocations across many of our portfolios and disrupted our ability to assume and manage risk. Read more...