From the desk of Roel Hoekstra October, 2008
Market Turmoil
Has anyone noticed that the financial system is in turmoil? Of course you have so I’ll jump right to the good stuff
… what does this mean for our Stock Loan Borrowers and for the investors in our hedge fund?
For our stock loan borrowers:
The market turmoil means that they do not have to worry about short term swings in stock price as our loans do
not have margin calls. We’ve had a number of deals come in over the past few days from people who wanted to
take money out of the stock market while remaining bullish over the long term with the prospects of their stocks.
Even where the price has declined recently our product is very well received as the borrower can access the
equity in the position today and pay off the loan early if the price rebounds or withdraw additional funds. They are
not stuck in the fixed long term contracts such as those offered by our competitors.
The Freedom Stock Loan:
Access the equity in your stock holding without selling
• Non – Recourse loan without margin calls if the stock price declines
• Loan to Value (LTV) rates of 50% to 80%
• Fixed interest rates from 7% to 9%
• No closing costs
• 2 year term with the ability to pre-pay at any time
• Quarterly portfolio review so more cash can be withdrawn if the underlying stock increases in value
For our Hedge Fund Investors:
The good news is our hedge fund model is holding up well through this market volatility. Actually the increased
volatility works to the advantage of our hedging model and generally delivers improved returns to the fund.
I was asked recently what would have happened if we had been holding AIG stock as collateral for a loan. While I
was initially scared to even run the stock through the model I was not really that surprised by the result. If we had
done the loan a year ago we would have made more than 200% on the loan (the hedging model worked great!).
If we had closed the deal on the worst possible day (September 24th) we would actually be up 50% as of the
market close on Friday, Unfortunately we did not have any loans outstanding on AIG stock!
So as I sit here at my desk with CNBC on in the background I can smile as our hedging strategy that protects the
capital we lend out and allows us to be able to return shares once the loan is repaid is working better than I even
hoped it would during these unprecedented times.
If you are interested in learning more about the opportunity to invest in the hedge fund please call me (215) 858-
8650 so I can send you a copy of our private placement memorandum.
New Product – IRA Turbo Plan
We’ve teamed up with Much Financial Services of Los Angeles, Aurora Capital of Philadelphia and HedgeLender
LLC to bring to our customers a new product that takes advantage of our stock lending services, HedgeLender’s
distribution channels, and investment advice from Aurora Capital and insurance, and annuity sales through Much
Financial Services.
What this allows is for clients to increase the potential returns for their IRA/401(k) retirement plan while reducing
the downside risk and volatility of the plan. We launched this as a pilot program in August 2008 and it has met
with great success so far. In November we will roll out the program formally through our entire distribution channel.
So if you are interested in potentially increasing the return on your self directed pension plan while reducing the
plan’s volatility just give me a call to discuss at 215 858-8659.
The Turbo IRA Program:
Turbo charge your self directed retirement plan, reduce volatility and downside risk
• Create a self directed IRA (or roll over your current plan) and get professional advice and plan management
• Leverage stock holdings without the risk of margin calls
• Invest in fixed income, guaranteed return investments
• Create the potential for returns 25% greater than for the stock portfolio alone
• Create the potential for returns 200% greater than for the fixed income portfolio alone
Update on Global Stock Lending Direct LLC and our products
So while we are holding our own during this latest financial crisis, I can also report on a number of new
developments for our group
New offices, investors and staff
In September we closed on an equity investment from a pension plan that dramatically strengthens our balance
sheet and brings in two new professionals. James Keeney joins our group and brings his 25 years of experience
and gold plated Rolodex to focus on bringing investors into the hedge fund (so we can continue to lend on new
deals). Avra Gross joins our group as our office manager and treasurer. We are now working out of beautiful new
offices in the Northern Liberties section of Philadelphia.
We have made a few small changes to our hedge fund structure in order to continue offering investors the
opportunity to realize above market returns while conservatively investing in liquid, asset backed loan contracts.
Please call me for more information and if appropriate, a copy of our prospective.
Summary
Times are tough right now for everyone in the financial markets but I am as confident as ever that out stock loan
programs deliver exceptional value to our borrowers and provides our hedge fund investors with a fully
collateralized program that earns outstanding returns.
Sincerely,
Roel Hoekstra
President and CEO
Global Stock Lending Direct, LLC.
215.858.8659
www.globalstocklending.com
Notice of disclosure and disclaimer: Although the information contained in this e-mail communication has been obtained from sources we believe to
be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. All data, estimates and opinions included in
this e-mail constitute judgment as of the date of the respective material, and are subject to change without notice. Accompanying material is for
informational purposes only and is not intended as an offer of securities or solicitation with respect to the purchase or sale of any security. This material
is not intended for public consumption, distribution or reproduction.
Market Turmoil
Has anyone noticed that the financial system is in turmoil? Of course you have so I’ll jump right to the good stuff
… what does this mean for our Stock Loan Borrowers and for the investors in our hedge fund?
For our stock loan borrowers:
The market turmoil means that they do not have to worry about short term swings in stock price as our loans do
not have margin calls. We’ve had a number of deals come in over the past few days from people who wanted to
take money out of the stock market while remaining bullish over the long term with the prospects of their stocks.
Even where the price has declined recently our product is very well received as the borrower can access the
equity in the position today and pay off the loan early if the price rebounds or withdraw additional funds. They are
not stuck in the fixed long term contracts such as those offered by our competitors.
The Freedom Stock Loan:
Access the equity in your stock holding without selling
• Non – Recourse loan without margin calls if the stock price declines
• Loan to Value (LTV) rates of 50% to 80%
• Fixed interest rates from 7% to 9%
• No closing costs
• 2 year term with the ability to pre-pay at any time
• Quarterly portfolio review so more cash can be withdrawn if the underlying stock increases in value
For our Hedge Fund Investors:
The good news is our hedge fund model is holding up well through this market volatility. Actually the increased
volatility works to the advantage of our hedging model and generally delivers improved returns to the fund.
I was asked recently what would have happened if we had been holding AIG stock as collateral for a loan. While I
was initially scared to even run the stock through the model I was not really that surprised by the result. If we had
done the loan a year ago we would have made more than 200% on the loan (the hedging model worked great!).
If we had closed the deal on the worst possible day (September 24th) we would actually be up 50% as of the
market close on Friday, Unfortunately we did not have any loans outstanding on AIG stock!
So as I sit here at my desk with CNBC on in the background I can smile as our hedging strategy that protects the
capital we lend out and allows us to be able to return shares once the loan is repaid is working better than I even
hoped it would during these unprecedented times.
If you are interested in learning more about the opportunity to invest in the hedge fund please call me (215) 858-
8650 so I can send you a copy of our private placement memorandum.
New Product – IRA Turbo Plan
We’ve teamed up with Much Financial Services of Los Angeles, Aurora Capital of Philadelphia and HedgeLender
LLC to bring to our customers a new product that takes advantage of our stock lending services, HedgeLender’s
distribution channels, and investment advice from Aurora Capital and insurance, and annuity sales through Much
Financial Services.
What this allows is for clients to increase the potential returns for their IRA/401(k) retirement plan while reducing
the downside risk and volatility of the plan. We launched this as a pilot program in August 2008 and it has met
with great success so far. In November we will roll out the program formally through our entire distribution channel.
So if you are interested in potentially increasing the return on your self directed pension plan while reducing the
plan’s volatility just give me a call to discuss at 215 858-8659.
The Turbo IRA Program:
Turbo charge your self directed retirement plan, reduce volatility and downside risk
• Create a self directed IRA (or roll over your current plan) and get professional advice and plan management
• Leverage stock holdings without the risk of margin calls
• Invest in fixed income, guaranteed return investments
• Create the potential for returns 25% greater than for the stock portfolio alone
• Create the potential for returns 200% greater than for the fixed income portfolio alone
Update on Global Stock Lending Direct LLC and our products
So while we are holding our own during this latest financial crisis, I can also report on a number of new
developments for our group
New offices, investors and staff
In September we closed on an equity investment from a pension plan that dramatically strengthens our balance
sheet and brings in two new professionals. James Keeney joins our group and brings his 25 years of experience
and gold plated Rolodex to focus on bringing investors into the hedge fund (so we can continue to lend on new
deals). Avra Gross joins our group as our office manager and treasurer. We are now working out of beautiful new
offices in the Northern Liberties section of Philadelphia.
We have made a few small changes to our hedge fund structure in order to continue offering investors the
opportunity to realize above market returns while conservatively investing in liquid, asset backed loan contracts.
Please call me for more information and if appropriate, a copy of our prospective.
Summary
Times are tough right now for everyone in the financial markets but I am as confident as ever that out stock loan
programs deliver exceptional value to our borrowers and provides our hedge fund investors with a fully
collateralized program that earns outstanding returns.
Sincerely,
Roel Hoekstra
President and CEO
Global Stock Lending Direct, LLC.
215.858.8659
www.globalstocklending.com
Notice of disclosure and disclaimer: Although the information contained in this e-mail communication has been obtained from sources we believe to
be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. All data, estimates and opinions included in
this e-mail constitute judgment as of the date of the respective material, and are subject to change without notice. Accompanying material is for
informational purposes only and is not intended as an offer of securities or solicitation with respect to the purchase or sale of any security. This material
is not intended for public consumption, distribution or reproduction.