Ann: Net Tangible Asset Backing, page-16

Standard fare for fund managers to attributed their good period to their superior skills and their bad period to external 'events'. While LSF could be saved at any time by a reversal of these 'events', one can be excused for wondering if L1 paid sufficient attention to risk control. The severity of their bad period suggests not.

Musing somewhat, but recalling Keynes's, "The market can remain irrational longer than you can remain solvent.", it's worth noting that, unlike a long only, any fund employing shorting techniques can theoretically go to zero without having a single stock selection go belly-up.