please stop it. the Bass case is regarding his accusations against
fund IV and there are very few excuses for what he did. the damage
he created is in > $100M for the then unit holders and worse than
that, he did not just manipulate information, but also went further
and on purpose tried to destroy the assets of the trust itself.
I calculate that part to be ~$100M. the reason the damage to former
unit holders is not higher is due to many not selling. those who
did not realized their losses, in theory, should be compensated by
damages to the trust itself (as they still hold the uniits in the
trust).
I do not acknowledge anything that has to do with the udf people etc.
all I am looking at are the actions of Bass. he said one thing
publically and did the opposite in private. he was trying to destroy
the value of the assets of the trust.
Bass's claims about ponzi etc. are ignoring the fact that while
asset sales and loans were made between funds (hardly disclosed -
udf major problem) there was an offsetting entry in the form of
payment for these monies. atleast when it comes to IV.
The whole story here should focus on Bsss vs UDF IV fund. Bass did
not short any other fund, trust or entity.
If Bass would have wanted to be a good semaritan, he could have done
things differently: the results would have been a reduction of IV
valuation, but the costs of the short position would have killed
him - so he took shortcuts - which undercuts his defense.
Time will tell, but that is my take.
I have very little sympathy for both sides in this fight between UDF
people and Bass. both sides wanted to take away the investors' money
and the irony of the story is that the investors' money might become
free from both as a result...
AI
