From the Opalesque team: Opalesque has learned that Eidsis Capital is preparing to launch a Hybrid distressed fund which will be named Eidsesis Special. Get information, directions, products, services, phone numbers, and reviews on Eidesis Capital in New York, NY. Discover more Security Brokers, Dealers, and. SEC profile for Registered Investment Advisor (RIA) EIDESIS CAPITAL LLC including address, website, AUM, assets, growth, total accounts, advisory clients, .

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Simon Mikhailovich knows a thing or two about financial weapons of mass destruction. They even thought they owned U. But they are not liquid during times of disruption. It is very difficult to own commodities physically, and therefore you are subject to market disruptions and counterparty risk. It’s normalcy bias, a psychological phenomenon that prevents people from seeing unconventional threats.

Eidesis Capital LLC

A cardinal rule of risk management is, don’t put all your eggs in one basket. For the best Barrons.

In the movie Trading Placesthe eeidesis is trying to sell his very expensive Swiss watch at a pawn shop in Philadelphia, and he is told that in Philadelphia it’s worth 50 bucks. When you disconnect greed and fear, greed runs rampant.

Going for Gold in a Dangerous World

It’s the means of production. With a wealth of experience in structured credit, he co-founded Eidesis Capital in with Michael Sollott, after they completed a buyout of the collateralized-debt-obligation business of St.

The benefit of land and of paintings and other stores of value is that they are not financial assets and they do preserve value over an extended period. MF Global’s clients thought they owned commodities. If you take a chance and fail, you have to take the consequences of your failure. My approach is what investors should do to protect themselves from the consequences. The price of gold never rises. Central banks all have gold reserves, and they’ve been increasing them.


Interview With Simon Mikhailovich – Barron’s

Despite the fact that JPMorgan Chase was lauded as the most capable risk-management institution, it is facing potentially very large losses. The effectiveness wears off over time, you need to take more and more to achieve less and less, and eventually they stop working. Mikhailovich, who emigrated to the U. That is a very intelligent way to allocate part of your portfolio to this sort of reserves. Meanwhile, people are making valuation decisions based on these bad signals.

We came up with a vehicle that enables investors to do the same thing. Although there’s faith in the U. The idea is to position oneself to survive financially and potentially enhance one’s position.

To understand why, read on. All Rights Reserved This copy is for your personal, non-commercial use only. Reserves are essentially hedges or protections, they’re monies or some value that is sitting on the sidelines that can be pressed into service if something happens and you need to rely on these stores of value, for two reasons.

Hedgeable | Sophisticated Investing Made Simple

Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. But some people will win. There is a global market for it. If anybody is an expert in safe-haven assets, eideeis is the Swiss National Bank.


Convinced the worst is yet to come, Eidesis, which also is managed by Jim Wang, now invests mostly in gold bullion in various locations around the world outside of the banking system. Our concern is that excessive indebtedness around the world is driving governments to try to perpetuate a protracted deleveraging, because short-term deleveraging is very painful.

That is the endgame. It was a very specific bet on a very specific set of outcomes that is not panning out. The hidden cost of deleveraging proceeding without a blowup is that it transfers value from savers to debtors. But I try to diversify. If we step back from everything that is going on in the U. Investors need to examine old ideas about diversification, and to realize that both bonds and stocks capitsl become much more highly correlated than ever.

Recently, the Swiss National Bank announced that it holds its reserves in diverse locations around the globe. So you will never have the Philadelphia problem.

There is a huge vulnerability. You may not like the price, but it is never going to be a rip-off.