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Made-off Act II, Chapter I: The Damage

In our quest to bring you the latest, we have occasion to talk to all manner of Dealbreaker readers (you guys are the best) so it shouldn't surprise you to have a Made-off investor or two in the mix. Some interesting details have fallen out of a few of these conversations. Specifically:
Reporting was provided via "computer statement printed on an old school computer every month."
Tremont seems to have had a one to one levered fund and a 3:1 levered fund accomplished, apparently with swaps. We wonder quietly to ourselves where the bank exposure here might be.
Though listed with SIPC, that protection might only extend to the broker-dealer, and not the investment advisory practice (which is where all the loss is). Ouch.