PV, comments as follows:Opt1: I am slightly distrustful that the...

PV, comments as follows:

Opt1: I am slightly distrustful that the 25% buyback will occur in Dec'09. It is a bit irrational, but the way that they lost control of the trust leading to cancellation of the 10% buyback dissapointed me.

Opt2: What do you mean by a disorderly liquidiation (too aggressive leading to value distruction?) Personally I don't think the alignment issue is a biggie. Currency issue the only one, otherwise you be getting what you opt for (ie a windup). Clearly diversification will diminish, but this a product of a wind-up. I think the rump will take some time to clear (I think we agree that the mezz loans placed via B&B are illiquid and probably unsalable except at low prices.)

I am undecided, leaning towards Opt2 partly b/c I think Laxey less conflicted. EBB conflicted by their desire to retain FUM. I don't believe that any sane person wants a portfolio of hedge funds at the moment, assuming they are paying close to NTA. I dont think this will change either. So their business is buggered.