Long-Term Strikes Back
(This is interesting!)
In reaction to allegations made by the Gold Antitrust Action Committee (GATA) , Eric Rosenfeld, a principal of Long-Term Capital Management filed an affidavit in Connecticut court today denying the hedge fund was involved in any manipulation of the gold market.
"None of Long-Term Capital Management, [Long-Term Capital Portfolio] nor their affiliates has ever entered into any transaction involving the purchase or sale of gold, including without limitation spot, forwards, options, futures, loans, borrowings, repurchases, coin or bullion, long or short, physical or derivative or in any other form whatsoever," the affidavit states.
The ill-fated hedge fund did trade in six gold mining stocks involved in mergers as part of its arbitrage strategy, but "such equity positions never exceed $25 million in value on a gross basis long and short at any one time, and actual net positions were significantly less," the statement says.
Neither Bill Murphy, chairman of GATA, nor attorneys at Berger & Montague, the firm hired by GATA to investigate alleged manipulation of the gold market, could be reached for comment.
thestreet.com |
