This is an update intended exclusively for clients, their advisors, and accredited investors, and may under no circumstances be construed in to be an offer to sell or asolicitation to buy a security. Past performance is not indicative of future results. Any offer must be made, if at all, only by the delivery of a Confidential PrivatePlacement Memorandum, as well as various other disclosure materials including especially the monthly update letters to investors.
With many good long and short ideas, Glenrock Global Partners continues in a fullyinvested (about 140%) gross position, but with only very modest (about 4%) net longexposure, in reflection of our deep concerns about plentiful risks in an overheated marketenvironment.
For the month of
, Glenrock lost
, as a material loss on the short side of theportfolio, combined with a lesser overall loss on our stub positions, narrowly overwhelmedoverall gains on our long positions.
In terms of geography, we lost money in Japan, Australia, Latin America, North America,and Africa, and made money in Europe and Asia Ex-Japan.
included a short in a US medical-device company; and long positionsin two US technology companies, US energy stocks, and a US forest-products company.
The biggest individual
included short positions in a US retailer, a European consultingfirm, a US auto dealership, and a US medical-device company; and a long position in aBrazilian credit-card processor.
year to date
, the fund has only a very modest gain of
1.3% in GGP QP and 1.4% inGGP AI
. Clearly, what has been rewarded so far in 2009 has not been caution, but areflexive return to the speculative behavior and wishful thinking of the good old daysbefore the burst of the bubble, goaded on by the usual cheerleaders on Wall Street and,even more than usual, by US economic policy makers, in willful ignorance of present factsand probable prospects. We are disappointed with only having made very little money forour clients so far this year, but are also confident that we are protecting our investors fromthe many booby traps around, and hope to make up for lost time during the rest of the year.
Exposure by Region as % of Equity
LongShortNet Long (Short)Cross-Border "Stub" Positions7(9)(3)South Africa101Asia Ex-Japan303Australia0(0)(0)Europe4(6)(2)Japan21(3)18Latin America202North America34(49)(15)Total72(68)4
Exposure by Market Capitalization as % of Equity
LongShortNet Long (Short)Small Cap (<$1 billion)11(2)9Mid Cap ($1-5 billion)23(21)3Large Cap (>$5 billion)37(45)(8)Total72(68)4