why hfa took a beating, page-2

after going through the announcememnts it seems they used derivatives that leveraged their long plays but the problem is that once the markets started to tank the leveraging accentuated the losses just like it had accentuated the profits in the past.

Also the company relies on profits form funds it manages and investers have been pulling their money out of the funds which has reduced the amount of fees that can be charged, that along with probably no performance related fees as income for the comong year reduces the revenue stream.

Another thing is they bought into an American company at the start of last year and it seems they paid a couple of hundred million for the goodwill but with no underlying assets.

Thats just my take on it but I stand to be corrected

I am holding a small amount seems to be no bricks and mortar with this one so need to tread very carefully.