How to Avoid Volatility in Auction Driven Markets

In 2008 and 2009 when we were down two thirds, our funds were very undervalued in nine months. So it's not like those businesses did a lot better. It's that we were sitting very undervalued at that point. And I think for the next few years, the funds did very well. If you're going to participate in auction driven markets, you have to understand what volatility is part and parcel of that. The first rule is not to be leveraged. leverage becomes lethal when you are going to have large drawdowns because then your broker is going to tap you on the shoulder and ask you to send more cash just as a moment you happen to be short of cash. That