Thursday, October 23, 2014

AAMC: How's That Working Out For You Guys


TO:        Luxor, SAB, White Elm, Tiger Eye et. al. 
FROM:      Cassandra
DATE:      24 October 2014
SUBJECT:   AAMC Altisource
In Feb 2014, I was curious as to the investment thesis(if there was one) underpinning the large positions you (individually and collectively) held in Altisource Asset Management (AAMC), and the Ocwen related entities. 
Despite my pleas, and promise to publish any such theses, no readers (or interested parties) came forth to enlighten me regarding the allure (investment or otherwise) that caused you (but not only you) to buy more and more shares, at high, and higher prices, culminating in a crackerjack-of-a-year-end mark, up more than 10-fold from beginning of the CY. 
The tone of my curiosity, was, unashamedly skeptical for reasons described in the post. Outsized positions, acquired with investors' capital, in illiquid  stocks, moving their price by eyebrow-raising amounts in the process of accumulation, with performance fees crystallizing at a single-point-in-time, which doesn't reflect liquidity or prospective unwind or investment risk, does raise potential conflict-of-interest questions, however unfounded they may be.  
So, here we are in October 2014, and I am certain many observers are wondering just how that's working out for you guys? 

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