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Solengo's marketing brochure, widely distributed on the blogosphere in recent days, describes the firm's goal to focus on commodities and to "minimize the risk associated with leverage, liquidity, credit and operations".
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Each category was associated with specific leverage points and initiatives.
With leverage, equity becomes riskier.
He comments: "Colt is a solid business in the downturn and geared very much for the recovery which should see continued growth in managed services combined with stronger growth in data and a minor recovery in voice to yield stronger revenue growth and associated operational leverage to the business".
"He must have worked with leverage or futures.
But playing with leverage could easily turn out worse.
They nearly blew us all up with leverage".
The problem is entirely with leverage.
The variances increase substantively with leverage.
But portfolios become riskier with leverage.
But with leverage always lies danger.
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