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More Mutual Funds Liquidating: Whitebox Calls It Quits
It may not be the latest junk bond-heavy mutual fund, but moments ago another iconic name in the asset management arena, Andy Redleaf's Whitebox Advisors threw in the towel on rigged markets and announced that it, too, has closed its mutual funds ahead of a January 19, 2016 liquidation.
According to the funds' overview, "Whitebox Mutual Funds are managed by Whitebox Advisors LLC, (“Whitebox” or the “Adviser”) an SEC-registered investment adviser, founded and led by visionary investment manager Andrew Redleaf."
It appears his vision got clouded when the market would no longer levitate every single day.
Among the funds to be liquidated are:
- the Whitebox Tactical Opportunities Fund (down -9.7% in the quarter, and 16.8% YTD)
- the Whitebox Market Neutral Equity Fund (down 3.7% YTD)
- the Whitebox Tactical Advantage Fund (up 1.58% YTD)
Of these the Tactical Opportunities Fund (mixed 27% equity, 18% fixed income, cash 43%) is by far the bigest (full portfolio as of Sept 30, 2015 here), and its top equity holdings are the following:
And its largest debt holdings:
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Bullish.
Send them to Equity in Dallas!
The Great Quickening
Whee! What a great roller coast ride. Down we go. But wait, there doesn't seem to be any more track ahead, how are we. . .CRASH!
Needing to liquidate when there is no liquidity. Coming soon to markets around the globe.
Hahaha that is a funny paradox. It is going to be a beautiful fire sale...
Can I catch a bid...? Any bid...
Our brave new world is arriving and I can hardly wait to meet the new overlords...preferably with a 165 grain hollowpoint......
...or millenials with a MacBook and a lathe from StarBucks...!?
When did StarBucks start selling machine tools?
must purchase breakfast pastry first.
rofl
Just say no to SB coffee
i donno. I meant to say that the lathe was from Starbucks. I rarely go to Starbucks so perhaps they sell it. Or maybe the new overlords come intead with a light saber. Any way I prefer the 165 grain hollowpoint.
latte....
sorry for the typo, I had some frappuccino in my eye.
" I had some frappuccino in my eye"
Oh, so that's what your type calls it now. Next time tell him to be more considerate and call out a warning! (or at least moan louder).
"When did StarBucks start selling machine tools?"
They're trying for a more manly look now. You can find the lathes near the three-axis mills (manual, no Fanuc controllers either!). The drill presses are from Harbor Freight though - avoid them.
Expect much more of this in the future as price discovery continues to be destroyed by the central planners of the world.
I got a laugh out of this, inflation will be driven by health care and financial services;
http://www.bloomberg.com/news/articles/2015-12-28/yellen-price-quirk-foc...
ah yes..
this would certainly explain this....
Salman Partners soon to be history.
http://www.vancouversun.com/business/investment+broker+salman+partners+close+doors/11594599/story.html?__lsa=a28f-9dbc
Goes more from mutual/private hands to central planners (big banks)/PPT/Fed.
Price discovery has been gone for a while.
Not coming back until a currency crisis hits.
unlike last week's losers at least i've heard of some of those equity & debt holdings
Am I missing something here? To my way of thinking Whitebox is doing their clients a great service by closing the shop. If I had been the founder of Whitebox and had made a shit ton of money for my clients, this is the exact time I would get them all out of the market. I would liquidate, give them their money back, and tell them why. And that would include advice to "stay out for the foreseeable future". I would explain why cash is king in a deflationary spiral and tell them that a deflationary spiral of biblical proportions is upon us. Clients may not thank Whitebox now, but they will surely thank them later.
Alberta, well said, he already was holding 43% in cash!
"To my way of thinking Whitebox is doing their clients a great service by closing the shop."
Yep - locks in the loss that way......
"locks in the loss"? The losses are yet to come. We have barely seen the first scratch on the surface. I guess you don't think there are any more losses coming? So you would keep all your clients in this market? I wouldn't.
"The losses are yet to come"
True, for others mired in the money markets. But, what I was alluding to was that they (Whitebox) just gave up while way behind for the year, and threw in the towel. The holders of the Whitebox MM shares will now not have any chance to try and recover the loss. That's just like the retail equity buyers selling on a long slide, only to see the stock move back up to initial strike price (or higher) in the years to come. When Whitebox decided the liquidate, the losses for their customers have just been made permanent.
Will other MM funds crash and burn? Most likely. In this case, the coach simply walked away while the team was far behind and left the players standing in the field.
They got Twitched & Vogeled. Could not happen to a better bunch of clowns.