Investment Objective and StrategyThe Partnership seeks to provide investors with long-term capital growth and a return linked to a three times levered exposure to the economic performance of the Rye Select Broad Market Fund, L.P. (the "Reference Entity"). The Partnership intends to achieve this return by entering into a total return swap transaction with one or more designated counterparties (each a "Counterparty") on a leveraged basis (the "Swap" or the "Transaction"). Furthermore, if, at any time, it becomes advantageous to achieve the foregoing investment objective by utilizing another type of investment transaction (e.g., note, option, etc.), the Partnership, in its sole discretion, may discontinue its use of the Swap in whole or in part. At present, the General Partner (as defined herein) serves as general partner to the Reference Entity. The General Partner may, from time to time in its sole discretion, invest the Partnership's assets directly in the Reference Entity (and other investment vehicles of which the General Partner may or may not serve as general partner) or in any other manner that the General Partner, in its sole discretion, believes is consistent with the investment objective of the Partnership.
Rye Select Broad Market XL Fund LP - PPM 12.1.08.pdf
Rye Select Broad Market XL Fund, L.P - Fact Sheet.pdf
Rye Select Broad Market XL LP - Subscription_Agreement 12 1 08 _FINAL_.pdf
Rye Select Broad Market XL LP -LP Agreement 12.1.08.pdf
Tremont - Form ADV Part II.pdf
Posted by guest , Dec 18, 2008 2:57PM
Bet Christine from KPMG gets a few calls.
"Nice job on the audit, please remit all fees plus treble damages to the investors."
Posted by guest , Dec 18, 2008 2:58PM
"Standard & Poor's took the first step toward potentially lowering its AAA ratings on GE." - WSJ
COME TO PAPA
- VIK
Posted by guest , Dec 18, 2008 2:58PM
HA HA HA
Posted by guest , Dec 18, 2008 3:04PM
I love how when you open the PPMs, and type "Madoff" in the search field - you come up with "No matches found". Nice disclosure.
Posted by guest , Dec 18, 2008 3:10PM
too much detail, didn't read
Posted by guest , Dec 18, 2008 3:17PM
@2 WB must be convulsing. How dare they!
Wouldn't mind an ol' fashioned selloff at the end. Been a while since we had ourselves one of those.
Posted by MarshallStack , Dec 18, 2008 3:19PM
@6
Are the margin clerks still employed?
Posted by AJ , Dec 18, 2008 3:21PM
"The Reference Entity allocates substantially all of its assets to one manager..."
Posted by guest , Dec 18, 2008 3:32PM
Even with all this, Madoff still had a better year than Cliff Asness ... at least Madoff wasn't really trying to make money for clients
Posted by guest , Dec 18, 2008 3:43PM
@9 And he wasn't on DB insulting Beth.
Madoff's Ponzi > His Royal Assness' misguided rants.
Posted by guest , Dec 18, 2008 3:49PM
I may, at my sole discretion, after due consideration, from time to time, tell the General Partner to take the Reference Entity, in whole or in part, and shove it up his ass.
Posted by guest , Dec 18, 2008 3:53PM
WSJ: The World's Largest Hedge Fund is a Fraud [PDF]
Posted by guest , Dec 18, 2008 3:54PM
Tremont founder & family are going to be taken to the cleaners...even E&O has caps/occurence limits
pulling $75-100M a year for this?
Hope he doesnt pimp out 5 daughters
Posted by guest , Dec 18, 2008 3:55PM
WSJ: The World's Largest Hedge Fund is a Fraud [PDF]
http://online.wsj.com/documents/Madoff_SECdocs_20081217.pdf
Posted by guest , Dec 18, 2008 3:58PM
sorry, meant Fairfield above
Tremont has no chix to pimp
Posted by guest , Dec 18, 2008 4:12PM
@2 - once again, the ratings agencies come to the party late. What value are they adding with this late call that GE "might" be downgraded? Where were they 6-12 months ago?
When they finally get around to investigating the ratings agencies (I'm not holding my breath), someone should check out whether they are taking positions in the stocks (or the market) before these announcements or if anyone is getting early access to the information.
The 'special status' they have MUST be taken away.
Posted by guest , Dec 18, 2008 4:26PM
Why in the world is everyone so outraged that these feeder funds would invest all of their assets in one manager?? Wake up people. Every major financial institution in the world runs their own feeder funds to allow smaller clients access to large minimum funds. The outrage here is that the feeder funds performed no due diligence and took a fee for it, not that they invested in one fund. Thats EXACTLY what feeder funds were built for. If I hear that crap one more time on CNBC I swear I'm switching to Fox Bus News...
Posted by guest , Dec 18, 2008 4:31PM
hey, wait a second -- did something happen with Madoff??!!
Posted by guest , Dec 18, 2008 4:45PM
would not want to be the TRS provider. good chance the collateral will be clawed back in bankruptcy given the whole fraudulent conveyance theme. at best, it's going to be tied up for a long time.
ex TRS dope
Posted by guest , Dec 18, 2008 5:09PM
meep
Posted by guest , Dec 18, 2008 5:17PM
@16:
Whatever, debt analysts are no better/no worse than the equity analysts. The people at fault here are investors that think an AAA rating from S&P is any different than a BUY rating from a Broker.
We some how in our minds allowed the rating agencies to be moved from the "opinion" category in our minds to the "fact" category.
Can you imagine if people wrote mandates for investment funds that said "This fund shall not be invested in the equity of a company that does not have at least a hold rating from Merrill Lynch" It would be ridiculous, what the fuck does the equity analyst at Merrill Lynch know, if he had any brains he'd doing something else.
But that's exactly how the rating agencies are treated. As though their opinion were some sort of objective fact rather than a guess, at best, and a bauble to be auctioned off to the highest bidder at worst. But its not the agencies who are to blame. Its the dumb ass investors (my self included) who forgot what the fuck they were dealing with. (Fortunately, before I realize that the agencies were guessing, I realized that a company could go broke faster than the agencies could down grade them.)
What's funny is, at least on the corporates side. The bankers are still scared of the agencies, they put as much faith in the ratings as anyone. I wonder when structured credit realized the agencies were for sale?
- VIK
Posted by guest , Dec 18, 2008 6:33PM
SEC Madoff smoking gun
http://online.wsj.com/documents/Madoff_SECdocs_20081217.pdf
Posted by guest , Dec 18, 2008 7:19PM
That is no smoking gun, that's a fucking nuke mushroom cloud. No wonder Chris Cox basically admitted the other day that the SEC is a joke, even by incompetent government agency standards. I wonder how many people at the SEC actually have the capacity, let alone the patience, to read and understand the memo.
Posted by guest , Dec 18, 2008 7:43PM
Is there *anything* which is not rigged?
http://online.wsj.com/article/SB122963497102619455.html
Posted by guest , Dec 18, 2008 8:25PM
Anyone who ever had a position of serious responsibility at a bank or hedge fund can show you many, many bodies are buried. If you're not smart enough/willing to outsmart the U.S. gov't and regulatory bodies you don't make it to the top of Wall Street. Your abilities and resume get you in the door. Your readiness and complicity in keeping the fraud going one more year earns you a nice bonus. Everybody else works for peanuts.
Posted by guest , Dec 18, 2008 8:31PM
@22 I read that letter. That guy was pissed at Madoff. I suspect that a number of the more successful "quant funds" are fronts for insider trading and ponzi schemes. Like *cough* BNP/Paribas Cooper-Neff *cough*
Posted by guest , Jan 03, 2009 6:23AM
All Rye Select Broad Market Series Funds were invested in Madoff.
Rye Select Broad Market LP 2.3 billion
Rye Select Broad Market Prime LP 9.3 Billion
Rye Select Broad Market XL LP 7.2 billion
Rye Select Broad Market Ltd 1.2 billion
Rye Select Broad Market XL Ltd 3.5 billion
Rye Select Broad Market Insurance Ltd 1.7 billion
Posted by guest , Jan 03, 2009 6:24AM
All Rye Select Broad Market Series Funds were invested in Madoff.
Rye Select Broad Market LP 2.3 billion
Rye Select Broad Market Prime LP 0.9 Billion
Rye Select Broad Market XL LP 0.7 billion
Rye Select Broad Market Ltd 1.2 billion
Rye Select Broad Market XL Ltd 0.3 billion
Rye Select Broad Market Insurance Ltd 0.17 billion
Posted by guest , Jan 03, 2009 6:24AM
All Rye Select Broad Market Series Funds were invested in Madoff.
Rye Select Broad Market LP 2.3 billion
Rye Select Broad Market Prime LP 0.9 Billion
Rye Select Broad Market XL LP 0.7 billion
Rye Select Broad Market Ltd 1.2 billion
Rye Select Broad Market XL Ltd 0.3 billion
Rye Select Broad Market Insurance Ltd 0.17 billion