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To: John Vosilla who wrote (328)	2/27/2007 4:30:43 PM
From: SouthFloridaGuy	Respond to of 1718

<<What are you hearing from your Wall Street friends? What to make of the collapse in stocks of the mega Wall Street banking concerns?>> Technical retrenchment. Hopefully some streaks were broken today (i.e. longest period without a 2% correction) so I don't have to hear about them anymore. This is a growth scare and it's very typical of the mid-cycle. However, given the amount of liquidity out there, I don't think it affects cheap equity that much. You look at the data for 1994 and it was much worse.

To: John Vosilla who wrote (328)	2/27/2007 5:59:28 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 1718

Getting a couple of emails from some well known hedge funds tonight. Most good ones that I know have had protection in OTM puts. Others have said their arb trades worked beautifully today. All in all a non-event for the 1st and 2nd tier hedge funds. Days like today make my business that much better. The clueless bears don't understand how the hedge fund business works. Our best years asset raising wise were 2002-2004 when people were shell-shocked from long-only. The worst years were 1998-2000 when the cost of leverage was high and people had no reason for long/short (why buy long/short when you can just be long). I bet today alone will add 3-5% to my firm's asset raising ventures as scared allocators have yet another reason to lower equity sensitivity.