The Memo by Howard Marks cover image

The Rewind: Lines in the Sand

The Memo by Howard Marks

CHAPTER

Subscription Lines Increase the Risk of Unrelated Business Taxes

A fund that would easily have cleared the percentage hurdle rate if it hadn't used a line at the same time. The interest and expenses paid on the line will reduce the funds lifetime net dollar gains. As the use of subscription lines increases, many banks are requiring greater and more intrusive information on the financial wherewithal of fund l ps.

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