1/n A 🧵 with some questions I have for @GRDecter. I'm confused so I'm hoping you can clear everything up. First, you make repeated statements that you managed/ran the Redwood Global Smallcap fund for 7 years, including through the 2008 financial crisis.
2/n As an investment fund registered in Canada, all of the fund's regulatory filings are available at sedar.com. I was particularly interested in the fund's Annual Information Filings for each of these 7 years.
3/n starting with the first one, dated May 2008, the fund's inception. For some reason it says that the portfolio manager of the fund is someone named Michael B. Decter.
4/n 2009 (which would have covered "through the 2008 financial crisis"), I see the same:
5/n 2010:
6/n 2011
7/n 2012 which has a slight change, saying this person is still principally responsible for the portfolio management decisions, and "oversees and approves them."
8/n Checking with the Canadian Securities Adminsitrators, it seems you weren't even registered as a portfolio manager until December, 2011 (unconfirmed rumors that this is after the 2008 financial crisis), about 3.5 years into the fund's inception.
9/n I'm also wondering how one manages a fund for 7 years when only registered as a portfolio manager for 4 years and one month. Moving on.
10/n 2013
11/n 2014 Here, it appears, if I'm not mistaken, is the first time you appear as a "co-portfolio manager" of this fund.
12/n This seems to be the final year of the "7 years", as in May 2015 the firm stopped managing this fund.
13/13 So the Qs are: 1) How did you manage/run a fund from 2008-2015 when not apparently not registered as a PM until 2011, and 2) Why is someone else listed as the sole PM for the first several years, and as the principal PM for all 7. Or am I wrong on all of this? Thanks.
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1/n A 🧵: On August 9, 2022, Grit Capital / @GRDecter published a daily newsletter that had a paid "advertisement" for a company called "Boomerang" . I won't link it as Elon seems to not like S_ubstack links on Twitter.
2/n Clicking on that "advertisement" brings you to a website called GetVersed () GetVersed = Grit Capital, as they registered the name as a dba (doing business as): https://t.co/nwUcDSvGuHget-versed.io
3/n You can read the article/advertisement/report in the Google cache. You will see that "Boomerang" is really Lotus Bio-Technology Developments $LBTD, an unregistered OTC stock. In the disclaimer you can see $LBTD paid $87,480 for this content https://t.co/2MUkrJE3zawebcache.googleusercontent.com/search?q=cache…
Hah it looks like the toxic $BBBY deal is designed to soak up every single authorized common share (from 117M to the full 900M authorization), and they still of course had to add the risk factor that the toxic VWAP-based conversion feature means the 900M may not be enough. 1/3
This is smart as it means the buyers of this deal don't have to compete with $BBBY issuing more shares to the baggies. They can have the baggy bids all to themselves. Looks like common warrants will have a fixed (likely in the money now) price, but pref has VWAP discount. 2/3
3/3 The C.H.U.D.'s also made sure that when the bankruptcy is filed, they'll stomp the common equity baggies even further into the mud by making the prefs redeemable at a "Required Premium" that on the surface just looks like 15%, but in reality could be massively higher.