Ann: Market Guidance, page-101

Just responding to the two fellow holders of Shine above. You are both smart in seeing Slater's high risk and avoiding it. It is the most prudent decision even if there are big rewards promised. At least don't touch it with big money if you have no way of hedging the risk.

However, I will mention one thing. The reason we decided to give Slater a miss is not because of it's risk. Like I have already mentioned, we have instruments and ways to hedge Slater's risk away, and get it close to Shine's risk profile. Only major issue there was once we calculated the cost of hedging, Slater is not as profitable as Shine on a risk adjusted basis by a big margin.

Hedging just means insurance, for those of you that might be confused. Most hedge funds these days don't practise prudent hedging, they just use hedging instruments to gamble. They are not using the instruments to set up a position. They are like the guy who buys a car insurance without a car, and then trying to sell the car insurance to the next guy for a higher price.