NakedShorts' InvestorLetters

About-as-good-as-it’ll-get news

As the New Year begins, I wanted to take the opportunity to update you on the status of the Amaranth multi-strategy funds (the “Funds”). In addition, I thought it important at the outset to give you my personal assurances that my top priority remains the continued disposition of the Funds investments and distribution of capital to investors, as appropriate.
Nicholas Maounis
Amaranth
Jan 9. 2007

Dear Investor ...

Bad news is good news

I am writing to update you on recent developments at North Sound, and to convey to you our excitement for the positive impact we expect these changes to have in 2007...

We have taken steps to ensure that the reduction in our capital is as smooth a transition as possible for all investors...

...these changes will both address our performance and enable efficient management of the new capital base...We will be focusing the majority of our attention on fewer sectors...a smaller, more focused team will produce fewer but stronger ideas...

We believe this will address a problem we faced this year, which is that we mistakenly under-weighted many of our most successful ideas. Going forward, we intend to increase our participation in our highest conviction names...

and so on and so forth.

Dear Investor
Thomas E. McAuley
North Sound Capital
Dec. 5 2006

So, let’s motivate him again!

Florian Homm, chief investment officer of UK-based Absolute Capital Mgt Holdings, is back at work after been shot while visiting Venezuela in mid-November. The understandably happy-to-be-alive manager lavishly praises his outfit’s performance during his absence, and says:

Please be assured that post this incident I am even more motivated than before. The value of my having both the physical and mental strength post this incident has made me realize how important “being in the ring” is. In many ways the support of all of you has motivated me to levels I have not experienced since my early days with Peter Lynch.

Let’s hope nobody misinterprets that as a suggested course of action the next time someone feels that Homm’s motivation needs a little extra alpha. Japes in dubious taste aside, glad it all worked out so well.

Dear clients, colleagues and friends
by Florian Homm
Palma de Mallorca, Dec. 5 2006

Earlier NakedShorts coverage