Wall Street types come in 3 varieties:

1) Financial planners aka asset gatherers. In my opinion they take the parasitical approach; adding little to no value and living off your money. Most investment bankers can also be put in this category.

2) Traders, self explanatory.

3) Lastly venture guys. This is the category I work in. The difference between myself and most of them is that the majority, in my opinion, are also asset gatherers aka parasites. They are able to raise gigantic sums of money post earlier big exits ("pedigree" creating), and then the capacity challenges (which were not present pre-pedigree) force them to throw it at the wall to see what sticks (big is bad for performance; well documented by independent sources including Warren Buffett who is quoted in an interview with Charlie Rose as "misses the good $10mm bet"). The "pedigree" firms have yet to adapt their plan for "exits", in response to the events that began in March 2008. I am focused by size, and always begin with the end in mind, never needing a traditional IPO to realize an exit.

The event driven environment I plan to exploit with Thornwater, Inc:

* The internet is host to a very large and growing "self directed" investor segment of the public markets.

* No traditional IPO's for traditional venture guys via Bear Stearns, Lehman and others that are, or nearly defunct.

* New Rule 144, 6 month lockup with no conditions on sales thereafter vs. previous old Rule 144; 12 month lockup and conditional sales for another 12 months.

* The difference in equity value for the right private company, becoming publicly traded is significant.

Author: Thomas D. O'Rourke
Tel: 201-816-3505 ext.11
tom@thornwater.com


"Tom O'Rourke comment to SEC small cap advisory commission" - [ View PDF ]

"Gramm Leach Bliley helped fuel equity prices" - Investment News, March 17 2008  [ View PDF ]

"A man, who has personally made tens of billions of dollars picking stocks" - [ View PDF ]

"In 2002 Chris Bower Chairman of Pacific Corporate Group" - [ View PDF ]