Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (14177)	9/26/2000 10:58:05 PM
From: Das Boot	Respond to of 18998

Unfortunatly Mr Loeb is not here to personally defend his actions... However, it seems reasonable to assume that his fund acquired the CNC bonds some time in the past, And Conseco has since deteriorated to the point that Mr Loeb needed to start a short position in CNC equities, so as to hedge the fund's bond investment, in order to adequately fulfill his fiduciary responsibility to his investors. Perhaps Mr P. has additional insight into this matter. Aufwiedersehen, Das

To: Peter V who wrote (14177)	9/27/2000 12:23:16 AM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 18998

Because it's a "hedged" trade. One might guess that the man is performing capital structure arbitrage, just a guess mind you.

To: Peter V who wrote (14177)	9/28/2000 12:12:51 PM
From: Mr. Pink	Read Replies (2) \| Respond to of 18998

Perhaps Mr. Loeb, who manages a top rated hedge fund, (and is said to be quite handsome, charming and kind to small animals) determined that the bonds are a good relative value to the hyper-inflated stock and he purchased the bonds as a hedge. Furthermore, he might be upset that the bank deal, by giving a security interest to the banks in CIHC, has degraded the value of certain long-dated public debt. This is all conjecture since I do not know what Mr. Loeb was thinking. MP