I am troubled by being called a short earlier today
So I thought I would transmit my summary of activities in LINE from my IB account for last calendar year.
I run a rather large personal port with a Berkowitz theory of taking big positions in your best ideas.
I don't know why I am doing this except that I don't appreciate being called a liar.
I do the same strategy, and unless my position is small, I too do not hold for the distributions. The only thing I find, is that if an MLP releases big news at some point before a good entry price can be achieved...then that blows the entire strategy out of the water until that excitment dies down a little.
This hedge fund attack is stupid...let me tell EVERYONE why...they are stating cash flow deficiencies based on GAAP accounting, and attempting to tie that to distributable cash flows. IMPOSSIBLE. Those are two different metrics, and GAAP demands cash outflow at time of hedge, while the other demands cash inflow/outflow with cash use at some point in time. Whatever hedge is in place, has been paid for in cash, and thusly negatively affected DCF in that manner. Gains or losses on a hedge to not matter.
This is an easy arguement if you understand accounting...and as an accountant, I find this hedge fund attack insulting to my profession.
Okay. I concede and retract my post. I do wish, though, that you had cited reasons why this latest hedge fund attack is flawed. (Although maybe this is niggling considering the distress that yet another short-seller is causing.)
No big deal. But I did call IR today and had a lengthy convesation. I called mainly to let them know this was coming, which of course they already knew and actually listened to the Hedgeye call. He told me that Hedgeye's assumptions were embarrassinly naive and wrong of course.
They were clearly short sellers trying to throw anything against the wall and see what sticks.
I assume this goes back to the same GAAP accounting misrepresentation that we experienced last time.
He went through the numbers with me again, CAPEX, restructuring costs for hedges, amount spent on acquisitions and showed me that 2.4 left over for distributions did not come from capital raising as Hedgeye apparently alleges.
In spite of the fact that I am sooo long right now, I may try to pick up a little more LNCO in the next couple of days if some sellers take this newest B.S. seriously.