Managing money tax-efficiently is getting more and more difficult and time-intensive. With a full-time job and a family I no longer feel able to dedicate enough time to take care of your money.
Furthermore I believe that, despite recent losses, most of the "pain" in equities markets is still to come, as banks are under tremendous pressure to reduce their balance sheets and credit is no longer available for a lot of companies and individuals. This must lead to a significant reduction in company earnings that will top the recessions of the years 2001/2 and 1991/2 by far.
The US equity market reached its peak in October 2007 - the bear market is not even a year old, and could last for a couple of years. A stabilization of house prices in the US is not expected before 2010 or 2011.
I therefore decided to liquidate HPF-funds after almost 23 years and return your money. I will begin selling our assets tomorrow and work out ways of returning cash with each investor individually.
Thank you very much for your long-lasting trust. I hope I will be able to manage money professionally at a later stage, as over the long term we have outperformed our benchmarks systematically and substantially.
August 15, 2008 – March 12 3 (c) Lighthouse Investment Management 3/24/2010
Just 3 bits of information 4 (c) Lighthouse Investment Management 3/24/2010 Consumer = 2/3of GDP Impact of MEW on GDP Future of residential home prices (Whitney Tilson) Ignore everything else (e.g. Bernanke, Paulson)
“Person of the Year” 2009: 5 (c) Lighthouse Investment Management 3/24/2010
July 12th, 2007 – Paulson: "This is far and away the strongest global economy I've seen in my business lifetime.”
August 1st, 2007 – Paulson: "I see the underlying economy as being very healthy,“
October 15th, 2007 – Bernanke: "It is not the responsibility of the Federal Reserve - nor would it be appropriate - to protect lenders and investors from the consequences of their financial decisions.“
February 14th, 2008 – Paulson: (the economy) "is fundamentally strong, diverse and resilient.“
February 28th, 2008 – Paulson: "I'm seeing a series of ideas suggested involving major government intervention in the housing market, and these things are usually presented or sold as a way of helping homeowners stay in their homes. Then when you look at them more carefully what they really amount to is a bailout for financial institutions or Wall Street.“
February 29th, 2008 – Bernanke: "I expect there will be some failures. I don't anticipate any serious problems of that sort among the large internationally active banks that make up a very substantial part of our banking system.“
March 16th, 2008 – Paulson: "We've got strong financial institutions . . . Our markets are the envy of the world. They're resilient, they're...innovative, they're flexible. I think we move very quickly to address situations in this country, and, as I said, our financial institutions are strong."
Lighthouse Services:1. Definition of appropriate investment strategy2. Execution and monitoring3. Risk control4. Reinvesting dividends / interest if desired5. Reporting (statements) by Fidelity6. Daily updates via Facebook, monthly Outlook
What to expect 86 (c) Lighthouse Investment Management 3/24/2010
Investment strategy tailored to individual risk preference