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Another down month in July, 7th in a row. Pigs get slaughtered too. http://capitalistpig.com/investment-fund/

“On an unlevered basis, our models produce modest returns with very low volatility,” Mr. Brown testified at a hearing of the Senate Permanent Subcommittee on Investigations. Without the leverage and lower taxes, it was uneconomic. It's hard being a market maker without actually being a broker.

Right, and we're supposed to believe that those trades were all executed by Barclays using Barclays own money, with mere "suggestions" coming from Rentech. Meanwhile, Barclays took the whole scheme off its balance sheet - because it was always just Rentech's brokerage account, "fronted" by...

why do all these reports repeat the claim that the scheme was "complex"? It wasn't complex in the slightest. All Rentech did was wave a wand over it's brokerage account and call it an "option." That's it. There was nothing at all clever or complex about it.

it's going to be hilarious when it turns out not to be 4

Good quote from a NYT interview: "I don’t get wrapped up in things or even wrapped up in myself. My son once told me, “You’re really not that smart; you’re just so well organized and have a clear brain.”

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http://www.hsgac.senate.gov/download/report-abuse-of-structured-financial-products-misusing-basket-options-to-avoid-taxes-and-leverage-limits

Having read some of the 93 page report, it appears that the broker would create an option, sell it to Rentec, and Rentec would exercise the "option" after one year to avoid short term taxes. Supposedly the "option" is held by the broker, and the broker bears some risk, and Rentec is hired as...

It's amazing how many people will come out of the blue to defend the rich & successful. I'm not saying that about you, MoreLeverage, but people react to criticism of the rich and successful like you criticized their mother. Simons is a $15.5B billionaire with great press: mathematician...

It looks like I got the argument for this post from here. I didn't really understand it the first time around, but the latest allegations seem to indicate that there might be something to it. In other words, Rentech used all of the leverage to run the quasi-market making business...

Rentech had such stringent non-compete agreements that two MIT Phds left to work for a competitor without ever signing any non-compete agreement. As to the compensation argument, Simons has $15.5B. He hired people out of universities who tended to compare their salary with what professors make...

In other words, what at first looks like a tax avoidance scheme is really a business model. And the reason Rentech never had to worry much about employees leaving and starting new funds was because Rentech wasn't really a fund. All of the intellectual property is inseparable from essentially...

In the latest Senate hearings into Jim Simons and his tax fraud, it was revealed that Rentech avoided leverage limits by putting many of its trades in the name of the broker. The broker would then legally own the trade, and rentech would collect a "fee" for advising the broker on what trades to...

could go either way, long term trend is down.

That looks bearish to me . . . I always thought ascending triangles were supposed to be bearish. That looks like yen breaking down. In conclusion, bearish.

June performance of the Capitalist Pig is more of what we've come to expect. Down -2.33. Not a single positive month this year. Jan Jun 2014: -8.58% -3.68% -0.48% -7.40% -2.05% -2.33%

This guy has worked for Tudor, Caxton, and Bacon Moore and he's got ye olde blogspot blogge. There are a lot of political posts, but you can find good trading posts by searching for Tudor, Caxton, Moore, etc. and whatever else you think might be interesting. Very smart guy. Part of what's...

Learn the business? The business? This is so similar to all of the "grinding it out" and "it's just like a job" and "1% a day" threads. I don't mean to stomp all over your thread, but mentioning your GPA kind of makes me wonder what you think you're getting into. Good luck, of course.

All that shows is that refiners are selling their retail gas stations.