Dear Clients,

As a general policy, we refrain from giving specific investment ideas. There is little upside to revealing our investments in specific, publicly traded companies. On the contrary, there is significant downside in telegraphing our methods and trade secrets that will ultimately hamper our ability to act discretely and quickly.  I will thus refrain from discussing specific investment ideas outside of regulatory requirements.

What I hope to impart through these memos is the business and investment policy of our partnership. We are not in the business of predicting the fluctuation of markets. Our expertise lies in seeking out discrepancies between value of price in mis-priced securities i.e common/preferred stock, warrants or bonds.

We view shares in a company as a very real & tangible ownership in the business. Mindful of the fact that we are minority shareholders, we typically seek businesses that are awash in cash, either as ...