- 18 -
closed Salina’s short position in Treasury bills by directing the
purchase of Treasury bills with a face value of $350 million for a
price of $344,675,333. On December 31, 1992, Mr. Silverstein sold
Salina’s long position in Treasury notes for $140,408,750 and
repaid Goldman Sachs approximately $70 million representing the
amount borrowed under the Salina/Goldman Sachs repo agreement. The
proceeds of these transactions were held in bank deposits pending
Mr. Silverstein’s reinvestment of those amounts under the MAPS
strategy after January 1, 1993. For financial reporting purposes,
Salina realized a book gain of $334,214 for the period December 17
through 31, 1992.
E. Salina’s Investments (January 1993 - November 1994)
After January 1, 1993, Mr. Silverstein actively managed
Salina’s investments pursuant to the MAPS strategy. Mr.
Silverstein executed approximately 2,000 trades on behalf of Salina
between January 1, 1993, and November 30, 1994, earning management
fees of approximately $1,500,000 in the process.
During the period January 1993 to November 1994, BEA prepared
monthly transaction and performance summaries detailing all of
Salina’s transactions for the particular month. In addition, Mr.
Silverstein routinely communicated with Salina’s partners in order
to apprise them of market developments and BEA’s strategy.
Salina conducted regular partnership meetings attended by
representatives of FPL, Caraville, and Pallico. At Salina’s August
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011