What is $362 million between friends? ************************* Refco Owes Jim Rogers Fund $362 Million By Matthew Goldstein Senior Writer 10/18/2005 2:49 PM EDT Investment guru Jim Rogers could be one of the losers in the collapse of Refco (RFX:NYSE - commentary - research - Cramer's Take), the scandal-tarred commodities and derivatives brokerage. A Rogers-managed investment fund is one of the largest unsecured creditors of Refco, according to the bankruptcy petition filed by Refco Inc. in New York. The Rogers Raw Material Fund is owed more than $362 million, according to the filing. The fund is managed by Chicago-based Beeland Management Co., of which Rogers is majority owner. It trades in a portfolio of exchange-traded commodity futures and forward contracts. Rogers was not immediately available for comment. An employee with Beeland said the fund's officials were meeting Tuesday to discuss the situation. Rogers, a frequent guest on television business shows, has written several popular investment books. Last week, prior to the bankruptcy, Beeland sent a letter to investors saying it transferred "all trade execution to Refco effective Sept. 30, 2005, with funds in government securities held by Refco Capital Markets. "Beeland has requested a transfer of all funds and positions to a replacement futures commission merchant. That request has not yet been honored due to the freezing of many customer funds," the statement, which was obtained by TheStreet.com, said. In a bankruptcy proceeding, unsecured creditors traditionally stand at the back of the line, along with shareholders, in getting their claims paid off. Secured lenders, such as banks and some bond holders, tend to get paid first. It's unlikely Rogers will be totally out of luck. The bankruptcy filing says some of the money owed to unsecured creditors could be "an obligation to return to securities or currency." Complicating matters is that Refco's bankruptcy is occurring as the company tries to liquidate two of its divisions, Refco Capital Markets and Refco Securities. Some of the unsecured claims listed by Refco could include a mix of loans and securities held in customer accounts. . . . www.thestreet.com/_google...&cm_ite=NA
Jim Rogers won't let them off the hook easy. He'll get his money one way or the other. So what's up on the criminal liability. Who the heck under-wrote this scam IPO? I'm sure we'll see a ton of civil suits coming up next week. But question is if poor Martha got a few months jail time, this calls for years of hard labor.
in a salespitch for his fund and commodities in general, rogers always claimed that commodities could never go to zero. maybe, in this case, he was wrong.
One must also wonder how these positions are being liquidated in the various commodity markets. Would it be too far fetched that some trading desks around Wall Street know the positions already and can front run them?
There was an interesting article in Futures Magazine about the effect of long only funds on the market. The unwinding of Refco could be interesting if it happens and bring prices back to a more "normal" level in many markets. Brandon
=================== Jim Rogers may be wrong on commodities could never go to zero; do remember him making that statement. However with his nations wide study & trading skills; Jim Rogers will probably turn out well.