About this time he realized large oil tankers were in such oversupply that the older ones were selling for little more than scrap value. Kovner formed a partnership to buy one. I was one of the limited partners.
That’s pretty cool. He bought share in an oil tanker at just above scrap value (inherent hedge, a price floor) anticipating that its value would go up. It did, but they held onto it and made a lot of money operating as a tanker, the sold for scrap at large gain to boot.
