Very interesting article from Bronte Capital today: Blue Sky -...

Very interesting article from Bronte Capital today: Blue Sky - some notes and an agenda for ASIC

I have only three hypotheses to explain this situation.

Either

• a) The cash raised was invested in funds that remained there when Oaktree put the firm into liquidation – and Oaktree wound up for $50 million with investments that had about $200 million in cost. Oaktree made out like bandits.

• b) The cash raised and the accumulated profits were invested in Blue Sky funds – but that Blue Sky is such an atrocious investor that $200 million in investments at cost were not enough to repay Oaktree on liquidation or

• c) The investments were never made – and were fictional from inception. The cash raised wasn’t invested. It was diverted for purposes unknown. And likely the profits that Blue Sky booked along the way were fictional.