Lehman’s Private Letter to Limited Partners

June 13, 2008

Lehman Brothers (NYSE:LEH) sent another “feel-good” letter to their clients that hold positions in Lehman sponsored partnerships. This is not the first of these smokescreens that Lehman published in an attempt to take our eyes off of the real problems.  Is it me or is it terribly concerning how gullible many of these companies believe that we are. I still have not hear an apology for the blatant and disrespectful lies misinformation that was promoted by the overzealous PR team over at Lehman HQ. Below is the June 11 letter and my comments….

LEHMAN BROTHERS
399 PARK AVENUE, NEW YORK NY 10022 TELEPHONE (212) 526-0977 FACSIMILE (646) 758-4269
MICHAEL J. ODRICH,  MANAGING DIRECTOR, HEAD OF PRIVATE EQUITY

Dear Partner:

As the second quarter comes to a close, financial markets remain under stress. Actions taken by the Federal Reserve have provided additional stability for capital markets, although the operating
environment has yet to revert to what we would consider normal. We write to discuss how Lehman Brothers has been impacted and to reiterate our confidence with where we stand as a Firm.

My comment: Did they say confidence?

Click here to read the rest of the article on MSN Money/Top Stocks

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Written by Andrew Horowitz · Filed Under MarketMash, Short Ideas, Stocks 

Comments

6 Responses to “Lehman’s Private Letter to Limited Partners”

  1. cheezburger on June 13th, 2008 9:07 pm

    Your head is up your rear end

  2. Andrew Horowitz on June 13th, 2008 9:13 pm

    Cheeze…

    I assume you have a long position here.. Sorry… Really…

    What is the plan?

    A

  3. Jon lawson on June 14th, 2008 11:34 am

    Actually Dick F,
    had his head up his rear end.

    And you can extrapolate that as to what has happened to LEH investors.

    j

  4. Jon lawson on June 14th, 2008 11:38 am

    Why do ‘investors” hold on to stocks like this? It is a piece of electronic paper. It should have been sold months ago.

    I feel bad for employees who get paid in stock and cannot sell it. They need to learn a strategy Andrew talks about in his book, the Married put position, or better yet a position which should be added in the next edition of the book.. The Collar strategy.

    j

  5. my two cents on September 14th, 2008 2:11 am

    Just to clarify, it appears that the letter is addressed to limited partners (investors) in Lehman’s private equity funds. LP’s usually can’t pull out from the fund until the end of the investment period, but their invested capital is safe even if Lehman goes down. Of course the major downside is if Lehman’s entire PE division is shut down, the investors are stuck with a fund but no fund manager.

  6. Andrew Horowitz on September 14th, 2008 8:21 am

    2 cent:

    Agreed, but the point was the fine print of the letter with regard to Lehman itself…

    A

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