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to both the purchase of CPG in 1985 and the sale of the company in
1991. At all relevant times, David A. Ackert was a vice president
at Goldman Sachs.
In 1992, Mr. Ackert developed an investment strategy called
Special Treasury and Mortgage Partnership Units (STAMPS). The
STAMPS strategy employed leveraged and hedged investments in short-
term U.S. Treasury securities, mortgage-backed securities, and
other arbitrage positions in fixed-income securities, in an effort
to provide a cash investment vehicle for corporate or institutional
clients seeking above-market returns.
The STAMPS strategy was designed not only as an investment
strategy, but also involved accounting, tax, and legal
considerations. Mr. Ackert concluded that it would be preferable
for corporate investors to pursue the STAMPS investment strategy
through a partnership that would allow the investor the possibility
of “off balance sheet” accounting treatment. Mr. Ackert believed
that off balance sheet accounting treatment was essential to making
the STAMPS strategy appealing to potential investors because, to
the extent that the program required a leveraged position, the
investor’s balance sheet would reflect the net amount of its
investment without showing any related debt.
B. BEA Associates/MAPS
In conjunction with the creation of the STAMPS investment
strategy, Mr. Ackert approached Mark Silverstein, vice president
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