After placing the winning bid in this year’s
auction for lunch with famed investor Warren Buffett, the
principals of Salida Capital may find that they have bitten off
more than they can chew.
Three of Salida’s hedge funds posted losses when
their holdings were frozen in Lehman Brothers International
during the Wall Street firm’s bankruptcy last
fall. Investors in those funds are unlikely to see their money
again anytime soon – if ever. Not surprisingly, the
firm’s decision to drop $1.68 million on a single
lunch has irked these investors.
"They just lost more than $200 million of their
investors’ money and now they’ve paid
$1.68 million for lunch with Warren Buffett. What are they
doing?" questioned one investor in the $300 million
Toronto-based hedge fund firm, whose assets under management
plummeted 75% since last year.
"This is a publicity scheme," he said, adding...