It’s ‘Dear Investor’ Day

Dan Benton throws in the Andor.

...“after 24 years in the investment business, I have decided to retire from managing outside capital” to devote more time to family and other interests...

Dan Loeb rolls his eyes.

As you may recall, the SEC conducted an audit of Third Point last year after we registered as an investment advisor. During the course of the audit, the examination staff noted that we regularly communicate with portfolio managers at other hedge funds about investment and trading ideas. The SEC later informed us that it had commenced a formal investigation of Third Point primarily relating to these types of communications. Such conversations permit us to test our hypotheses and refine our thinking and, as a result, we believe that participating in give-and-take with other managers is in the best interest of our investors. Our outside counsel has examined this matter thoroughly and assured us that our position is consistent with the securities laws and that we have not violated any law in connection with these communications.

Cassandra proffers a template.

But DSP Advisors LLC sees cause for optimism.

Dear Limited Partner,

DSP Advisors LLC wishes to advise investors in DSP Right But Early LP (“The Fund”) that a side pocket (“The Landfill”) was recently established for certain investments (“LEH $10 puts Aug. expiry” or “The Trade”) that are currently asleep.

We were 100% right, got the timing 100% correct yet for technical reasons (i.e. expiration date passing with options OTM) it appears the investment may be implicated in a 100% loss.  Our track record will, however, under FAS 157, reflect how right we were despite market manipulation that was responsible unexpected difficulties with execution, timing and strike price of The Trade.

Please note that our independent administrator and pricing service, UBS Fund Services (Caymans) Ltd, shows The Trade to have generated a 9.78 per cent return in July.

We are currently negotiating with the casino for the return of our chips, and will provide prompt updates concerning The Fund in the next few months. As I move on to new responsibilities, I hope that I may have the opportunity to serve you in future. Thank you for playing.

Respectfully yours

David S. Products
Managing Member
DSP Advisors LLC

PS: Please note the new address for redemption notices:

c/- Options Clearing Corp
Gaming Refund Operations
New Jersey Marshes (nr. Fort Lee)
NJ 07007-UHOH

 

 

Comments

[Art Kunkin:]

Dear Greg Newton,
I just came across your name and found we have some mutual interests. Please email me or phone me off-line if you have an extra moment in your undoubtedly busy day. [e-mail], 760-368-5410. Thanks. Art Kunkin, Founding editor/publisher Los Angeles Free Press, 1964-2008. Former president Philosophical Research Society of Los Angeles. Presently a life extension laboratory researcher.

2008 Aug 21 02:17 PM

[Bill Herbert:]

Greg - Absolutely hilarious, and so true!

I'm not sure the average HF investor is aware of how many gratuitous marks are floating around in some of these portfolios.

Once some of these swamps are drained, the true extent of the muck will be evident!

2008 Aug 22 07:57 AM

[notsosmart:]

"once some"?????. most will never be drained.the crooks & scammers will survive beautifully in this country.what a shame at what is being done to a not perfect system,but the best we had.

2008 Aug 22 11:04 AM