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...