Manuel Guillén i Solà
Chief Executive Officer
Barcelona, June 3rd 2009
Dear investors and clients,
As all of you already know, Mediterranean Capital investment activities focus on distressed loan and mortgage acquisitions and trading, bridge financing supply, asset/real estate management activities and debt management professional services. Banks and Saving Banks are our main clients and suppliers. We started our investment activities in 2005 and, since our foundation, we have been delivering consistent superior investment returns to our investors and shareholders. Even today, when markets face their worst crisis since the end of WWII, we are delivering a consistent 22% IRR.
We decided to start this blog to open a real-time bidirectional communication window with our current and prospective clients and investors. As we have reported to you, we are growing both in number and size of transactions and the communication process between you and our management team is becoming more and more challenging. One of our basic Investment Principles defines our commitment in terms of communication with you: “We must (…) communicate our investment strategies, risk assessment policies and decision making processes to our clients in a quick, transparent and easy-to-understand manner. If we communicate properly, we avoid misunderstandings and reduce potential conflicts of interests”.
One of the various reasons why you invest with us is because we are able to provide you an ultra-personal and direct relationship with our management team. You feel comfortable investing with us and we feel comfortable investing with you. Transparency and direct relationship is an essential part of this comfort. This blog is another step in our continuous effort to “…communicate our investment strategies, risk assessment policies and decision making processes (…) in a quick, transparent and easy-to-understand manner”.
We strongly believe that distressed debt trading markets are non-efficient markets in which application of knowledge advantage, time-to-market approach, excellence in product and services development, and superior professional networking leads to superior returns. Consequently, we invest significant amounts of time and money to create a knowledge base strong enough to support our competitive advantage in a challenging investment environment. Our asset managers, lawyers and senior management spend an important portion of their time to deeply understand all financial, legal and operational aspects of our investment decisions. A significant part of this knowledge base in shared with you through our regular documents and reports exchange. This blog will be part of this communication process.
No changes will be introduced in our confidentiality policy. Those of you that receive our Quarterly Letter to Investors and/or our Investment Opportunities Report will continue receiving these documents and confidentiality restrictions will continue applying in accordance with the Confidentiality Agreement signed between you and Mediterranean Capital Management. None of these documents will be posted or published here. Additionally, no references to specific investment opportunities and/or past or current deals will be made. Investment opportunities analysis and deal decision process will continue being developed in the Investment Committee. This blog will not replace or substitute our formal reporting and communication process with you.
No investment recommendations will be made here. No investment commitments from our side will be made based in the opinions and/or analysis included in this blog. We can follow or not any strategic direction reflected here. Our investment decisions will continue being strictly confidential. If we decide to report any specific investment situation to support a case study or to reflect some of our policies, confidentiality of the clients and investors will be strictly protected.
This blog is open to our senior management, lawyers, business consultants and asset managers. Building our investment strategy is a common responsibility. All of us are fully responsible for the achievement of our common objectives and all of us have the right and the obligation to contribute to our strategy building effort. As all our regular reports and documents, this blog will be written bilingual English and Spanish and no translation will be provided for any document or information posted here.
As usual, we expect from you strong and direct feedback about this new initiative. Also as usual: “If you like it, tell us. In you do not like it, you must tell us”.
Finally, thank you again for your support. We will continue working hard to meet your expectations.
Best regards,
Manuel Guillén i Solà
