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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Surfer who wrote (19803)	10/30/1997 12:07:00 AM
From: Jeff Mills	Read Replies (1) \| Respond to of 61433

Surfer, here is the letter Neiederhoffer sent out to clients today (I am not a client BTW!) '''''''''''''''''''''''''''''''''''''''''''''' The following unsigned letter was faxed to clients of Victor Niederhoffer on Wednesday, October 29, 1997 after 5:00 p.m. EDT: October 29, 1997 To: Limited Partners of Niederhoffer Intermarket Fund, L.P. Limited Partners of Niederhoffer Friends Partnership, L.P. Shareholders of Niederhoffer Global Systems, S.A. Dear Customers: As you no doubt are aware, the New York stock market dropped precipitously on Monday, October 27, 1997. That drop followed large declines on two previous days. This precipitous decline caused substantial losses in the fund's positions, particularly their positions in puts on the Standard & Poor's 500 Index. As you also know from my previous correspondence with you, the funds suffered substantial losses earlier in the year as a result of the collapse in the East Asian markets, especially in Thailand. The cumulation [sic] of these adverse developments led to the situation where, at the close of business on Monday, the funds were unable to meet minimum capital requirements for the maintenance of their margin accounts. It is not yet clear what is the precise extent (if any) to which the funds' equity balances are negative. We have been working with our broker-dealers since Monday evening to try to meet the funds' obligations in an orderly fashion. However, right now the indications are that the entire equity positions in the funds has been wiped out. Sadly, it would appear that if it had been possible to delay liquidated most of the funds' accounts for one more day, a liquidation could have been avoided. Nevertheless, we cannot deal with "would have been." We took risks. We were successful for a long time. This time we did not succeed, and I regret to say that all of us have suffered some very large losses.