Nothing, but thats the point. They have been dragged kicking and screaming to this point, hence why people have lost confidence and trust in them and when you manage other peoples money, confidence and trust is all that matters.
If they had stood up at the first report and said - hey, we get that Glaucus has taken a view on our products, they have made some errors in calculating them - we will:
1. Start reporting our AUM as equity invested into funds.
2. Increase our disclosure around these investments
3. Order an independent valuation of each fund.
But no, they went with the other approach - hey market, theres nothing to see here, everything is rosy and nobody needs to look closely. (Couple of days later) Hey Mr Market, why no love, hmmm, its Mr Markets fault that the price is taking, not our. (Couple of days later again) Hey Mr Market, we cannot get anymore money to charge people fees on, why no love. (Couple of days later) Hey Mr Market, we are issuing a profit downgrade and independent valuations, can you love us again?
The response has been piecemeal and slow and communicates a total lack of understanding on the core underlying value of the business - the markets TRUST in it. 4 Months ago, people paid $14 a share for this, because they trusted it. Now the trust has been damaged... hence the $4.20 a share (so far).
BLA Price at posting:
$4.12 Sentiment: Hold Disclosure: Held
