We aren't addicted to oil, but our cars are.
- R. James Woolsey, Jr.

Not the Absolute Return Letter

If you subscribe to the Absolute Return Letter, within the next week or two, you will receive a note from us called Not the Absolute Return Letter. Here is what it is all about:

In response to the financial crisis, the EU introduced a legislative framework designed to restore the faith in the financial industry after all the damage caused by the virtual meltdown in 2008 and the years thereafter. The latest ruleset which has been implemented as part of that framework is known as MiFID II, and that kicked into action early last year.

MiFID II has had one critical implication for us as authors of the Absolute Return Letter. Given the current setup, where the Absolute Return Letter is offered for free, under no circumstances can we discuss specific investment opportunities in those letters. If we do that, the letters will be deemed research and will be subject to the MiFID II rules. Suddenly, the letters can only be offered to paying clients of the firm.

As we don’t want to restrict these letters to paying clients, we have decided to introduce a new model. The Absolute Return Letter will continue to be freely available, but it will be subject to the MiFID II rules; i.e. we will never discuss specific investment opportunities.

For those of you interested in our work, and how we invest along the lines of the views expressed in the Absolute Return Letter, a new service will shortly be on offer, and that is what the forthcoming letter will be about. If you are already a paying client of Absolute Return Partners, you can disregard all of this. Nothing will change.