Why Doesn't Jones Issue More LP Units?

or Register to post new content in the forum

30 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Dec 23, 2005 7:41 pm

Maybe some of your homies at HQ can explain to all of us why the GPs at EDJ have not issued any LPs units for the past couple of years?  This should be a fun post!

Dec 23, 2005 9:35 pm

Wasn't the last time LP was offered in 2000?

Dec 23, 2005 10:03 pm

CJ



LP was offered in 2003. It was not completed. All who accepted the offer have been earning profits on whatever amount they were offered even though they did not actually have to put any many up. LP has averaged 20%+ earnings over the last two years. The LP bonus pool continues to earn profits and will contine to earn profits until the next offer is completed. Not a bad deal.



Sorry to ruin your thread Lance.



You may want to take off the "It's The Capital Stupid" tagline. It's making you look rather stupid.



BPD



P.S. The Jones LP has averaged 22%+ over the last 15 years. Not a bad return considering that the stock market which has had one of it's best runs over that same period has only averaged about 11% comparitively.

Dec 23, 2005 10:12 pm

candybar,


you are correct, what I meant to say was that the last time an LP was ISSUED was 2000.


If your stement is correct AND your firm has collect ed the funds for an offering that was pulled then perhaps this is the next SEC investigation in the making. How can you offer , collect and credit an investment IF it doesn't have SEC approval?????


candybar I believe you are winner when it comes to awarding who looks stupid as it is ALWAYS about the Capital

Dec 23, 2005 10:19 pm

CJ,



You would think that someone that works in the compliance department like yourself would have better reading comprehension. Notice where I said "..didn't have to put any money up.." and "..lp bonus pool..".



Maybe you should just take your ball and go home.



BPD

Dec 23, 2005 11:41 pm
BigPayDay:

CJ

LP was offered in 2003. It was not completed. All who accepted the offer have been earning profits on whatever amount they were offered even though they did not actually have to put any many up. LP has averaged 20%+ earnings over the last two years. The LP bonus pool continues to earn profits and will contine to earn profits until the next offer is completed. Not a bad deal.

Sorry to ruin your thread Lance.

You may want to take off the "It's The Capital Stupid" tagline. It's making you look rather stupid.

BPD

P.S. The Jones LP has averaged 22%+ over the last 15 years. Not a bad return considering that the stock market which has had one of it's best runs over that same period has only averaged about 11% comparitively.


It is an illiquid investment concentrated in a single private company.  Thus, risk/return would suggest that it SHOULD deliver better returns than the S&P 500 which is diversified and liquid, in order to compensate for the greater risk.

Dec 24, 2005 5:21 pm

Not to be picky, but isn't the "22% annually" a single year at a time (ie simple interest) whereas that S&P 500 11% is compounded--makes the numbers looks a lot different.  Obviously the LP has been a great investment, but you can't reinvest in more shares with your returns, can you?

For simplicity, if you have 100 units and earn 20 units simple interest for 7 years, you have 240 units (100 + 7x20)...if you earn 10 units compounded annually, rule of 72 says you have about 200 units.  The former still gives you more units, but the difference (240 vs. 200) isn't as stark as a "I got 20% and you got 10%" comparison would make it sound.

Dec 24, 2005 11:27 pm

Again The Question:



Why hasn't EDJ issued LP units in over 5 years?

Dec 26, 2005 11:44 am

22% per year?? Gee, Warren Buffett is jealous.

Dec 26, 2005 3:26 pm
Lance Legstrong:

Again The Question:

Why hasn't EDJ issued LP units in over 5 years?


Most likely:


a.)  Regulatory issues make it impossible...they're having to spend too much time and energy elsewhere.


b.)  There is something else in the way of big problems that they would legally have to disclose in the process of offering the units for sale.


c.)  They have nowhere to use new capital that would generate a sufficient return to support the payback on the LP's.  They can't earn above their cost of capital on new LP's, so issuing them would cut into the returns paid to the GP's.


I vote for C or B.

Dec 26, 2005 11:31 pm

BIGPAYDAY


Just curious if you are going to comment on Cowboy93s remarks or are you still wiping egg off your face?


"It's the MATH stupid"


Dec 27, 2005 5:41 pm

I guess I don't understand - what does it matter to you whether Jones
issues more LP units?  Unless you are a current or prospective LP
Unit holder, isn't this a worthless point?



Unless your sole purpose in life is bashing the company.  I don't work for Jones so it doesn't effect my life in the least.

Dec 27, 2005 8:12 pm

Beagle


you don't know the history of all of us "darker siders", so you don't understand why we're always slammin' the only firm that does right by it's clients.

Dec 27, 2005 10:27 pm

I just enjoy reading the post that the Kool Aid drinkers post. 
The fact is that EDJ can not issue any kind of equity capital units due
to its pending litigation exposure

Dec 27, 2005 11:06 pm

Thanks Captain Obvious!!

Dec 28, 2005 11:21 pm

BPD,


Are you still trying to figure out Cowboys math on you Jones terminal.  Here's a hint: Use your Putnam sliding calculator(shows 10k growing at diff rates over diff lengths of time), that's a better tool than most of the tech your firm provides.


Noggin,


Captain Obvious?  Here's a question with a less than obvious answer: Why are you still at Jones?

Dec 29, 2005 8:23 pm
Cowboy93:

Not to be picky, but isn't the "22% annually" a single year at a time (ie simple interest) whereas that S&P 500 11% is compounded--makes the numbers looks a lot different. Obviously the LP has been a great investment, but you can't reinvest in more shares with your returns, can you?For simplicity, if you have 100 units and earn 20 units simple interest for 7 years, you have 240 units (100 + 7x20)...if you earn 10 units compounded annually, rule of 72 says you have about 200 units. The former still gives you more units, but the difference (240 vs. 200) isn't as stark as a "I got 20% and you got 10%" comparison would make it sound.





Cowboy93, Unsung,



Gees....let me think. Would I rather have 22% simple interest over the past 15 years or 11% compounded. You don't really need to use fancy math to figure this one out. A pretty week argument. My earnings from my partnership over the last 15 years have gone directly into various equity mutual funds. The Jones partnership has been the best investment I have ever made. Period.



BPD

Dec 29, 2005 11:44 pm
BigPayDay:
Cowboy93:

Not to be picky, but isn't the "22% annually" a single year at a time (ie simple interest) whereas that S&P 500 11% is compounded--makes the numbers looks a lot different.  Obviously the LP has been a great investment, but you can't reinvest in more shares with your returns, can you?For simplicity, if you have 100 units and earn 20 units simple interest for 7 years, you have 240 units (100 + 7x20)...if you earn 10 units compounded annually, rule of 72 says you have about 200 units.  The former still gives you more units, but the difference (240 vs. 200) isn't as stark as a "I got 20% and you got 10%" comparison would make it sound.



Cowboy93, Unsung,

Gees....let me think. Would I rather have 22% simple interest over the past 15 years or 11% compounded. You don't really need to use fancy math to figure this one out. A pretty week argument. My earnings from my partnership over the last 15 years have gone directly into various equity mutual funds. The Jones partnership has been the best investment I have ever made. Period.

BPD


Good for you!

Dec 30, 2005 6:07 pm
Lance Legstrong:

Maybe some of your homies at HQ can explain to all of us why the GPs at EDJ have not issued any LPs units for the past couple of years?  This should be a fun post!



Here's a hint:


Bill Lockyear. 

Dec 30, 2005 9:07 pm
BigPayDay:
Cowboy93:

Not to be picky, but isn't the "22% annually" a single year at a time (ie simple interest) whereas that S&P 500 11% is compounded--makes the numbers looks a lot different. Obviously the LP has been a great investment, but you can't reinvest in more shares with your returns, can you?For simplicity, if you have 100 units and earn 20 units simple interest for 7 years, you have 240 units (100 + 7x20)...if you earn 10 units compounded annually, rule of 72 says you have about 200 units. The former still gives you more units, but the difference (240 vs. 200) isn't as stark as a "I got 20% and you got 10%" comparison would make it sound.





Cowboy93, Unsung,



Gees....let me think. Would I rather have 22% simple interest over the past 15 years or 11% compounded. You don't really need to use fancy math to figure this one out. A pretty week argument. My earnings from my partnership over the last 15 years have gone directly into various equity mutual funds. The Jones partnership has been the best investment I have ever made. Period.



BPD





You asked me to comment on Cowboys93 question. I have. No comment?



Didn't think so. Maybe you need to take your ball and go home.



BPD