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  "documentTitle": "Allied Capital (ALD)",
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  "authorName": "David Einhorn",
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  "presentationDate": "2002-06-17 00:00:00",
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  "notes": "This is a page from a research note/investor letter by Greenlight Capital regarding Allied Capital.",
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      "text": "Greenlight does not understand how debt securities that have to be partially equitized due to below plan operating performance can have a fair value of cost.",
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      "text": "Point 8—The CMBS portfolio",
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      "text": "Point 7—Cooper Natural Resources",
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      "text": "Greenlight thinks these examples speak loudly. Allied is required under the Investment Company Act of 1940 to mark its portfolio to “fair value.” For Velocita, Startec and Loewen it appears that Allied violated its own policy as stated in its 10-K: “The value of investments in public securities is determined using quoted market prices, discounted for illiquidity or restrictions on resale.”",
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      "text": "Greenlight cannot reconcile Mr. Walton's statement with the purchase of the senior MVL debt. Greenlight sees no sign of a recapitalization at MVL. Further, it seems that this management team is very quick to determine that markets are thin, quotations are not available and prices are fire sale.",
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      "text": "Allied owns around $700 million in commercial mortgage backed securities (CMBS). According to the financial statements, Allied holds the CMBS at fair value. However, on the May 29th conference call, Ms. Sweeney said that Allied carries the CMBS at “amortized cost.”",
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      "text": "In the third quarter of 2001 Allied did a recapitalization of Cooper Natural Resources. $3,724,000 of debt securities carried at cost became $1,686,000 of debt securities, $1,427,000 of preferred stock and $832,000 of warrants.",
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      "text": "The value of investments in public securities is determined using quoted market prices, discounted for illiquidity or restrictions on resale. — Allied Capital Corporation 2001 Annual Report",
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      "text": "18 Allied Capital Corporation 2001 Annual Report, p.18.",
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