Ibexx, my sources are probably not as plugged in as yours,
but I heard that LTCM was a U.S. limited partnership which creates fiduciary duties between the managing (unlimited) partner (often a corporation) and the limited partners, the details of which are prescribed by the partnership agreement. Other hedge funds differ, some being overseas corporations (esp. Netherlands Antilles) and have no reporting responsibilities to the IRS or SEC. Sometimes, American investors invest in these through their personal overseas trusts.
The limited partnership is limited, I think, to 59 partners. All the limited investment partnerships I have ever been in provided daily statements of net asset value per unit or partner, and I certainly wouldn't invest in one that didn't. I am not nearly as smart or rich as LTCM (minimum $10 million investment) partners so I doubt if they do not get daily NAV reports. But these, unlike mutual fund reports, are not generally available to the public, or they would be splattered daily in the press. My guess is the -3% was probably right, although there are no doubt many positions for which the net asset value is quite hazy. |
