Glaucus Issues A Rebuttal To Blue Sky Response
Californian short-seller Glaucus Research has issued another statement about Australian alternative asset manager's Blue Sky Alternative Investments. This time, it's a rebuttal to Blue Sky's response to Glaucus' original short announcement on March 28th. Blue Sky Chairman John Kain has served Glaucus with a preservation notice, “requiring it to preserve all relevant documents and communications whilst Blue Sky evaluates possible future legal steps” according to Business Insider Australia.
"On March 28, 2018, we published our investment opinion (the “Report”) on Blue Sky Alternative Investments Limited (ASX: BLA) (“Blue Sky” or the “Company”), an Australian fund manager with a purported $3.9 billion of fee earning assets under management (“AUM”). On April 3, Blue Sky issued a response (the “Response”).
Rather than address our Report on its merits, Blue Sky has doubled down on obfuscating simple details about its business. Instead of transparency, Blue Sky has fallen back on threats and recriminations. We simply do not see how investors can have any confidence in a Blue Sky management team that cannot answer basic questions about its fee structure, AUM and historic performance.
Time and again, Blue Sky insists that we are incorrect, without providing any substantive rebuttal, analysis or calculations showing why we are wrong. Rather, Blue Sky claims what we consider to be a fabricated obligation to maintain secrecy on all of its investments, its portfolio and its performance. We call on Blue Sky to point to the statute or requirement which prevents them from even high-level disclosures regarding their portfolio.
We call on Blue Sky to match the level of disclosure of other alternative asset managers like KKR, Blackstone and Apollo (to which Blue Sky compares itself) and disclose its fee earning and gross AUM by asset class and at the fund level, complete with disclosures on realized and unrealized valuation and IRRs."