Did I just write "We are of the opinion...". Yikes.
Anyhoo, this line of thought was triggered by a visit to LongorShort Capital who long-time readers may remember for their End of the Universe Puts, issued when CERN fired up the LHC.**
Here's some of their output:
Tinderbox Capital LLC, an incendiary investment management firm and subsidiary of Long or Short Capital LLC, announces its first fund, Dangerous Fund I.
Dangerous Fund I will specialize in positions that lack defensible absolute return theses. Assets will be allocated so as to leverage Tinderbox Capital’s expertise in trades of which they have little understanding, so-called “dangerous” trades. These trades will include vega convergence bets, investments in opaque levered pass-through instruments, naked red/black hedge trades, and proprietary coin-in straddles. Their due diligence process will include a rigorous “bottoms up” analysis that is comparable to the processes of Fairfield Greenwich Group and other top investment management firms.
Tinderbox Spokesman Johnny Debacle:Possibly related:
“We see a clear need for an investment vehicle for people who want to lose all their money. Competitors out there have lost on average 30-40% in this cycle. We think we can lose more, especially with our so-called ‘dangerous’ trades. Our trades are dangerous because we don’t fully understand them. Frankly, we may not understand them at all. Take a vega convergence bet wherein we form a pair trade with options with two assets with similar, but not the same, underlying. We make that trade and we’re pretty sure something happens, we just don’t know what that is. Does anyone? I may not have the details of that trade correct either. That is a core strength of our investment process....MORE
How to Say All Their Money is Gone
How to Say All Their Money is Gone – Part II
And LoS' latest, alternative valuation measures including buying the companies whose CEO's tweet the most.
*See "Short 'em All. They Aren't Worth the Paper They're Printed On"
**Large Hadron Collider Starts Up, Earth Suvives, End of the World Puts Plummet
Baguette breaks Large Hadron Collider (End of the Universe Puts Trade Down)
