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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": "The slide contains excerpts from Allied Capital's annual report and white paper, followed by Greenlight's commentary on Allied's regulatory stance.",
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      "text": "Greenlight believes that Allied wants to legislate its own regulatory treatment, where it gets the best benefits of being a RIC or an SBIC on a line item by line item basis.",
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      "text": "In the white paper Allied argues, \"the SBA Policy is far more applicable to the portfolio of a BDC than the valuation guidance set forth by the SEC in the ASRs.\"",
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      "text": "The Company's valuation policy considers the fact that privately negotiated securities increase in value over a long period of time, that the Company does not intend to trade the securities, and that no ready market exists...",
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      "text": "Ms. Sweeney continued to explain why current value should not be used on the May 29th conference call, \"The idea that we should be marking long-term, illiquid investments to some artificial or theoretical markets...\"",
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      "text": "Greenlight believes that Allied wants to legislate its own regulatory treatment, where it gets the best benefits of being a RIC or an SBIC on a line item by line item basis.",
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      "text": "Though the SEC has made it clear that illiquid investments must be valued based upon what they are worth in a current sale, Allied does not use the current sale test...",
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      "text": "\"The Company’s valuation policy considers the fact that privately negotiated securities increase in value over a long period of time, that the Company does not intend to trade the securities, and that no ready market exists.\" — Allied Capital Corporation 2001 Annual Report; \"The concept of ‘current sale’ in ASR 118 is particularly troubling if applied to a BDC’s illiquid portfolio, because if such a portfolio were subject to a current sale test, the portfolio would need to carry a significant discount from the face value of its underlying securities.\" — Allied Capital White Paper; \"The idea that we should be marking long-term, illiquid investments to some artificial or theoretical markets instead of telling shareholders what we really think we have made in gains or lost in principal seems theoretical at best and at least confusing.\" — Ms. Sweeney, Allied Capital conference call.",
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      "text": "4 Allied Capital Corporation 2001 Annual Report, p. 18. 5 Allied Capital White Paper, p.11. 6 Ibid, p.6.",
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