Author Topic: The 400% Man!  (Read 167769 times)

merkhet

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Re: The 400% Man!
« Reply #340 on: April 15, 2020, 07:56:51 AM »
IIRC, he used margin to increase the BRK position which is why it's so large.

I think that was a few years back. My understanding was that the fund was no longer levered the last few years, but I could be wrong.


jeffsreng

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Re: The 400% Man!
« Reply #341 on: April 15, 2020, 07:58:46 AM »
Once a business investor will always be a business investor.  He will always be in the game.

skanjete

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Re: The 400% Man!
« Reply #342 on: April 15, 2020, 08:14:48 AM »
It's a pity, really.
I had a lot of respect for him.

But now, his excellent long term track record will be greatly diminished because of an ill-timed exit at the worst possible time.

erdospi

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Re: The 400% Man!
« Reply #343 on: April 15, 2020, 09:07:24 AM »
I'm sorry to hear this, Allan is an all around good person who has a darn good track record.  Hope he comes back one day and all is OK with him healthwise.

opihiman2

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Re: The 400% Man!
« Reply #344 on: April 15, 2020, 10:24:53 AM »
I'm hearing new rumors that it's likely he's been re-levering, and to be frank, that actually explains why he's dissolving the fund and has had sleepless nights and "health" issues.  I've looked at the last quarter filings, and it just doesn't explain why you would dissolve the fund even if the draw-down is calculated to now about 40%.  I'm thinking if he did lever up, there's more worries than fund losses.  He'll be facing lawsuits and SEC inquiries. 

I hope this guy never comes back.  He'll be another hack job like Ackman, Tilson, and a whole host of other frauds that closed up shop, and re-opened to wipe out their bad years.

AzCactus

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Re: The 400% Man!
« Reply #345 on: April 15, 2020, 10:46:15 AM »
I'm hearing new rumors that it's likely he's been re-levering, and to be frank, that actually explains why he's dissolving the fund and has had sleepless nights and "health" issues.  I've looked at the last quarter filings, and it just doesn't explain why you would dissolve the fund even if the draw-down is calculated to now about 40%.  I'm thinking if he did lever up, there's more worries than fund losses.  He'll be facing lawsuits and SEC inquiries. 

I hope this guy never comes back.  He'll be another hack job like Ackman, Tilson, and a whole host of other frauds that closed up shop, and re-opened to wipe out their bad years.

Tell us how you really feel  ::)


kab60

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Re: The 400% Man!
« Reply #346 on: August 02, 2020, 05:04:51 AM »
Anyone here have any more details as to what happened?

Looking at the Q1 portfolio update, it seems he would either have been levered and getting margin calls or hit by redemptions - both at the worst possible time. His massive selling in Q1 probably explains some of the crazy drawdowns many of his holdings had. Really terrible timing because some of his recent picks, like Wayfair in Q1 and Covetrus the quarter prior, have been huge winners. Trying to figure out if there's anything to learn from this - other than sticky money goood, leverage baaad.

muscleman

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Re: The 400% Man!
« Reply #347 on: August 02, 2020, 07:54:50 AM »
I'm hearing new rumors that it's likely he's been re-levering, and to be frank, that actually explains why he's dissolving the fund and has had sleepless nights and "health" issues.  I've looked at the last quarter filings, and it just doesn't explain why you would dissolve the fund even if the draw-down is calculated to now about 40%.  I'm thinking if he did lever up, there's more worries than fund losses.  He'll be facing lawsuits and SEC inquiries. 

I hope this guy never comes back.  He'll be another hack job like Ackman, Tilson, and a whole host of other frauds that closed up shop, and re-opened to wipe out their bad years.

Could you tell me where you heard these rumors? If he did not lever up, then he would have survived the COVID crash and be fine right now. But if he had levered up, it would be strange for him to say in his letters that he will dissolve the fund in 6-9 months, because with margin calls, he does not have 6-9 months to dissolve.
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Spekulatius

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Re: The 400% Man!
« Reply #348 on: August 02, 2020, 08:13:41 AM »
I'm hearing new rumors that it's likely he's been re-levering, and to be frank, that actually explains why he's dissolving the fund and has had sleepless nights and "health" issues.  I've looked at the last quarter filings, and it just doesn't explain why you would dissolve the fund even if the draw-down is calculated to now about 40%.  I'm thinking if he did lever up, there's more worries than fund losses.  He'll be facing lawsuits and SEC inquiries. 

I hope this guy never comes back.  He'll be another hack job like Ackman, Tilson, and a whole host of other frauds that closed up shop, and re-opened to wipe out their bad years.

Margins calls get executed the same day, but it takes time to wind down a fund.

Could you tell me where you heard these rumors? If he did not lever up, then he would have survived the COVID crash and be fine right now. But if he had levered up, it would be strange for him to say in his letters that he will dissolve the fund in 6-9 months, because with margin calls, he does not have 6-9 months to dissolve.
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muscleman

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Re: The 400% Man!
« Reply #349 on: August 02, 2020, 03:17:45 PM »
I'm hearing new rumors that it's likely he's been re-levering, and to be frank, that actually explains why he's dissolving the fund and has had sleepless nights and "health" issues.  I've looked at the last quarter filings, and it just doesn't explain why you would dissolve the fund even if the draw-down is calculated to now about 40%.  I'm thinking if he did lever up, there's more worries than fund losses.  He'll be facing lawsuits and SEC inquiries. 

I hope this guy never comes back.  He'll be another hack job like Ackman, Tilson, and a whole host of other frauds that closed up shop, and re-opened to wipe out their bad years.

Margins calls get executed the same day, but it takes time to wind down a fund.

Could you tell me where you heard these rumors? If he did not lever up, then he would have survived the COVID crash and be fine right now. But if he had levered up, it would be strange for him to say in his letters that he will dissolve the fund in 6-9 months, because with margin calls, he does not have 6-9 months to dissolve.

If he gets margin calls, then he had to blow it out on the same day. Then the fund is probably already in cash right? Why does it still take another 6-9 months to dissolve?

Is it confirmed that he started using leverage again right before the COVID crash, which caused this tragedy? I feel so sorry for him.
I am muslceman. I have more muscle than brain!