The Famed Solengo Brochure

Posted by Bess Levin, Mar 28, 2007, 2:14pm

solengocapitallogo.pngWe posted this yesterday but it's not available through our old link (nor is it on FT Alphaville, or Naked Shorts, where it was previously...fishy indeed). So we're putting it up again as an easy to view image file. No downloading necessary. See especially: “Each fund contains margin restrictions and maximum capital restrictions to prevent serious liquidity and contagion risks from arising” and “Violation of restrictions eliminates ALL capital locks for investors in the fund," p.2. Though the pictures are our favorite parts, particularly the one of the flames, also p. 2 ("Our fund is on FIRE!"? "Investing in our fund will be like putting your money in a paper bag and lighting it on fire"? These things are so subjective).

Solengo Capital-1.jpg


Solengo Capital-2.jpg

Solengo Capital-3.jpg

Solengo Capital-4.jpg

Solengo Capital-5.jpg

Solengo Capital-6.jpg

Solengo Capital-7.jpg

Solengo Capital-8.jpg

0Recommend this! 32Comments
Posted in: After Amaranth

Comments

Posted by pete, Mar 28, 2007 3:44PM

Pdf?

Posted by , Mar 28, 2007 3:51PM

interesting that the address for Solengo in Calgary is near a strip mall a fair ways out from the city centre (ie. where the financial energy centre is located).

Posted by Anon, Mar 28, 2007 4:13PM

This is the building in Cowtown.

http://www.space4lease.com/main/results.asp?type=building&id=7519&uid=

Keeping a low profile, I see.

Posted by , Mar 28, 2007 6:40PM

nothing but the best for the boys

http://www.space4lease.com/object_manager/view_object.asp?objectID=33464

Posted by , Mar 29, 2007 3:04AM

Keeping a low profile does not (normally) involve driving a Bentley around Calgary.

Kind of like having the jet take you from the Upper East Side to Wall St. every morning.

Posted by hammer, Mar 29, 2007 11:54AM

It's a double thumbs up for dealbreaker.com for posting the investment prospectus/brochure despite pressure from Solengo.

In a zero sum game for futures/derivative trading its truly amazing that (1) anyone would pay the fees demanded, and (2) invest substantial amounts of money in someone who lost $6bn, (3) invest money with traders who have limited experience in crude and refined products, (4) and have the right, but certainly not the skill to trade other commodities such as metals.

The term hedge fund is a misnomer in this case, since they will make all their money with directional bets in underlying prices and or volatility. The initial speculation was that the Arabs were big backers of Solengo. But, I don't think they are that foolish, since there are other hedge funds that have a proven track record and where the fund manager have a substantial amount of net worth tied to the success of the fund.

Given the large universe of energy funds available, why would anyone select them? It really borders on the realm of insanity.

Posted by Anon, Mar 29, 2007 12:01PM

Aside from the fact that their new digs looks like a more appropriate office for a J.T. Marlin-style outfit, that might have been all they could get. Calgary's office vacancy is hovering at all-time lows, no matter how much money you throw at the building managers.

Posted by Anonymous, Mar 29, 2007 12:42PM

hammer, you are wrong on SEVERAL accounts.

First of all, many derivatives are NOT a zero-sum game. With dynamic hedging it is possible for both sides in a derivatives transaction to make a profit.

Secondly, trading in futures and other derivatives does not imply directional bets. It is also possible to take relative value bets (such as the kind of bet that led to Amaranth's collapse). In volatility trading you are usually making relative bets (e.g. realized vs implied volatility / dispersion) and not directional bets. That being said, ANY trade is a directional bet on SOME market value.

FInally, regarding Non-Performing Arabs (NPAs), they are stupid enough to invest in just about anything. The trick is that you have to be friends with them. I have trouble seeing how a hedgie living in Calagary could have made those kinds of connections. So while you are right that Solegno probably ISN'T backed by NPAs, you have the wrong reasons for thinking so.

Posted by RMS, Mar 29, 2007 12:54PM

Does anymore have a picture of Brian H.

Posted by RMS, Mar 29, 2007 1:08PM

I should learn to speak....Does anyone have a picture of Brian H?

Posted by NGHJ, Mar 29, 2007 3:23PM

I do

Posted by NGHJ, Mar 29, 2007 3:30PM

100K offered

Posted by Last Man Standing, Mar 29, 2007 6:16PM

Execellent job Carney on posting and bringing this to light.
Keep up th good work and maybe Hunter will crawl back into his rathole.

Posted by , Mar 29, 2007 6:21PM

LMS: Levin posted it-- she's the rebel.

Posted by John Carney, Mar 29, 2007 9:43PM

Credit where credit is due. Bess did post it.

Posted by , Mar 29, 2007 9:52PM

They'll probably both go to prison, though, maybe even the same cell. Hope you guys enjoy each other's company!

Posted by , Mar 29, 2007 9:53PM

They'll probably both go to prison, though, maybe even the same cell. Hope you guys enjoy each other's company!

Posted by larry, Mar 29, 2007 10:36PM

I wish I could put money in this fund.He will do great.He is a great trader.Now that his ego has been checked his best days are ahead!!!!!!!!!!!!!!!!!!1

Posted by Lord Marchmain, Mar 30, 2007 2:00PM

JC: "Credit where credit is due. Bess did post it."

Classic! Looks as though Carney is trying to hang Levin out to dry.

As this case heats up I bet he's telling her that he supports her 110% and is standing right behind her--a few hundred miles behind her in another country, but he's behind her nonetheless.

You guys crack me up.

Posted by John Carney, Mar 30, 2007 2:04PM

We stand together. Have no doubt.

Posted by Alex, Mar 30, 2007 4:47PM

"First of all, many derivatives are NOT a zero-sum game. With dynamic hedging it is possible for both sides in a derivatives transaction to make a profit."

Cumulatively, they're still zero sum! The dynamic hedger is simply passing his loss to the flat price market (the other side of his dynamic hedges...) Most of the natural gas market is speculative, and a lot of these funds are really just trading with one another.

One could argue that by adding liquidity, they're helping to smooth cashflows, so their "dealers spread" is earned and value additive. But no one takes positions like Amaranth's as a market maker.

Posted by junomb, Mar 30, 2007 5:08PM

brochure appears to have been written by spy magazine writers....sure this isn't a joke?....internet bubble echo?....offering terms beyond arrogance...this must be a hoax

Posted by Edmundo, Apr 05, 2007 3:23PM

What happened to the brochure???

I can only see 8 pictures of puppies

Posted by Edmundo, Apr 05, 2007 3:34PM

Please, if anyone can send me the brochure to elikhom@yahoo.com it would be greatly appreciated

Posted by Anonymous, Apr 05, 2007 3:59PM

I guess the Dealbreaker team realized that posting the brochure was a violation of copyright law.

Posted by anonymous, Apr 05, 2007 4:06PM

Yes. Expect JC and BL to start posting from an "undisclosed location." I hear Brazil is pretty nice this time of year.

Posted by Anonymous, Apr 05, 2007 4:11PM

I think Brazil has extradition treaties in place. It will have to be Israel.

Posted by anonymous, Apr 05, 2007 4:20PM

If they go to Namibia, they can hobnob with fellow outlaw Kobi Alexander.

Posted by Vivek Dandapat, Apr 09, 2007 4:24PM

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Posted by Vivek Dandapat, Apr 09, 2007 4:24PM

I try to find out how to get free movies from bolgs advertise

Posted by Brian, Apr 10, 2007 2:37AM

Prospectus:

http://www.bestsharing.com/f/cC1Z6259563

Posted by JT, Jun 22, 2007 10:12PM

Is there anywhere this brochure can be obtained?

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