Investment Objective and Strategy
The 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
Tremont – Privacy Policy.pdf

Did you invest in securities directly through Bernard L. Madoff Investment Securities, LLC?
Have you or your company invested in a Hedge Fund that failed to perform its due diligence before investing with Bernard L. Madoff Investment Securities, LLC?
If you answered “Yes” to either of these questions, the attorneys at Frier & Levitt, LLC can help you recover your losses.

You knew this was coming. Ah, freedom.
Attention Hedge Fund Investors And Securities Fraud Victims Of Bernard L. Madoff Investment Securities, LLC [Frier Levitt]

If you are going to defraud, make sure you include the personal places of worship of all the really good prosecuting authorities you can muster.

Moments ago, U.S. Attorney General Michael Mukasey confirmed that he will be recusing himself from the ongoing investigation into Bernie Madoff. The Justice Department didn’t specify a specific reason for his decision to step aside–early reports have suggested that Mukasey’s son, Marc, may be planning to represent a defendant in the case. But we can report a much more likely–and personal–reason why the Madoff case poses a serious conflict for the AG. Mukasey’s own synagogue was ripped off by Bernie Madoff’s Ponzi scheme.

We are beginning to respect this Bernie character.
Revealed: Mukasey’s Synagogue a Victim of Madoff [Cityfile]

Ok. Listen up people. I’m very worried. I think investors could well get hurt. Seriously. Hurt. If you guys slack off we are seriously going to have some problems. ‘kay? Thanks. Bye.
- Bernie Made-off.
If Only the S.E.C. Had Taken Madoff’s Advice [Dealbook]

Want support for your theory that ‘ole Bernie couldn’t have done it alone? The guy loved his vacations, and yet the firm apparently provided clients with trade-by-trade reconciliation of returns. Someone had to be doing all that backtesting to come up with trades that fit the numbers, and that’s probably not as simple when you are in the South of France for months at a time.
Madoff Scheme Was ‘Impossible’ to Do Alone, Says EIM’s Busson [Bloomberg]

On the bright side: Even if Bernie pissed all your money away and there aren’t any assets left to cover you, you can still sue any third party providers that didn’t bother to do due diligence of any sort before dumping 50% of their assets with the guy. They still have the other 50% for you to raid, don’t forget.
On the not-so-bright side: You had to invest through one of these third parties to get at that cash, probably.
On the bright side: The SIPC protects investors up to $500,000 per account.
On the not-so-bright side: Coverage is “murky” when the securities you were supposed to have in our account never existed.
On the not-so-bright side: Bernie’s investment advisory business wasn’t covered, only the broker-dealer.
On the not-so-bright side: The SIPC reserve is “only” about $1 billion.
On the not-so-bright side: It will take about two years to get money out of the SIPC.
Feeling better yet?
Madoff’s Indirect Investors May Recover Some Money, Lawyer Says [Bloomberg]

Who is surprised? The records in the Made-off case are so unreliable “There are some assets, but I have no idea what the relationships of the assets available are to the claims against them….”
I’m not remotely surprised. Are you?
Add to this the increasing pressure on the SEC to explain itself, particularly given it had reviewed the firm last year and brought no action…
“Senator Dodd is concerned not only about the people caught up in this reported scheme who may have been misled, but how such a massive fraud could have gone undetected…”
…and you have quite a recipe for an entertaining trial, recrimination and general melee phase.
Comfortable seat? Check.
Popcorn? Check.

Madoff’s Records ‘Utterly Unreliable,’ Says SIPC Head [Bloomberg]