HateFootball
New Member
HateFottball, OSB,
Hedge funds - Their objective is to make money. How does that make them any different than other investors?
The difference I see is Hedge Funds are specialized in making money from debt ridden and almost out-of-business companies, whereas 'normal' investors make money from already profitable (or likely to be in a short time window - a window that is bigger in good times and smaller in bad times).
Five years ago, when the financial world was booming, we probably could have attracted 'normal' investors as their patience to long term investments were bigger, but today we don't really have a choice. So unless there are normal investors out there being promissed they can have it all - the Ricoh, all income streams, all surrounding building prospects if only they accept to take along the football club, then we are stuck with what we have.
Communication - Hedge funds don't do public communications for a lot of reasons, but mostly because of what they do. They are in the public oppinion seen as vultures who thrive on others misfortune. In our case they left all communications to Ranson. And he did communicate in the beginning, but he became more silent as the income failed to match the budgets and he realized that a hedge fund is no sugardaddy.
When he was ousted and sisu took over the board they did try to communicate, but that didn't really go well. Clash of ego's in Brody and Dulieu who are both very communicative, but have very different - ehm - skill levels. KD was chairman and bound to win that contest, so LB went back to Canada .... and KD went back to Switzerland or whereever he lives. It all went from bad to worse. Now Tim Fisher is installed to do whatever communication he can, but even if I think he is doing a pretty decent job, nobody is ever going to listen or even trust his words. He will need 2 or 3 years to restore trust, but he is probably never going to get that.
The situation is looking very desperate and everybody is very creative in finding facts that our current owners have gotten this and that wrong. But is it helpful at this moment?
Is there no way we can help save the club?
Not all hedge funds make money from distressed companies. Some are experts in commodoties, others in equity options, others in currencies. One thing they have in common is to make lots with minimum risk.
SISU will do what they will and my gut tells me that they will restructure.
A rich overseas investor looking to raise their international profile to deter state persecution is a possibility.
A long shot would be to raise cash with an offer of warrants in CCFC with a strike price of the current debt levels.
The only potential investors who would be willing to become share-holders on this basis would be die-hard fans who trust SISU. Not a big market I would guess!