GSNewell Posted May 26, 2006 Share Posted May 26, 2006 GREG!!!! How is sunny Florida??? I love it here. I miss my friends in Rockford a lot, no doubt about it, but I'm happier in every other way than I've been in a long time. The friends are still around by phone and e-mail, and I know I'll see them again. The weather, the job, the house, the atmosphere ... Life is good. G Quote Link to comment Share on other sites More sharing options...
Tekneek Posted May 26, 2006 Share Posted May 26, 2006 This is brilliant. I had been wondering when/if somebody would do something like this. It's the only way to get some control over fuel expenses. If prices somehow go down below the prices they are locking in, you just buy the cheaper fuel. Quote Link to comment Share on other sites More sharing options...
davidfromthepit Posted May 26, 2006 Share Posted May 26, 2006 it says 10 corps are participating...but i dont believe it says which ones they are...any insight? Quote Link to comment Share on other sites More sharing options...
bawker Posted May 26, 2006 Share Posted May 26, 2006 Ten corps formed the Summer Tour Fuel Partners, LLC, which allowed them to purchase options on fuel prices to reduce the impact of rising fuel costs and keep their fuel budget below $500,000. The hedging transaction has been extended to all Drum Corps International member corps that wish to join the Summer Tour Fuel Partners. Very cool...and I'm glad everyone else gets to play along as well. Way to go, folks. :) Quote Link to comment Share on other sites More sharing options...
Carl306 Posted May 26, 2006 Share Posted May 26, 2006 I love it here.I miss my friends in Rockford a lot, no doubt about it, but I'm happier in every other way than I've been in a long time. The friends are still around by phone and e-mail, and I know I'll see them again. The weather, the job, the house, the atmosphere ... Life is good. G Wait until later in the year when you walk outside to get the mail and you're breaking a sweat :sshh: Maybe I'm just overlooking this, but is there any cost to the corps that participate in the fund? And if there is no cost, why aren't all corps taking advantage of this offer? Quote Link to comment Share on other sites More sharing options...
81regiment Posted May 26, 2006 Author Share Posted May 26, 2006 it says 10 corps are participating...but i dont believe it says which ones they are...any insight? There are explicit terms of confidentiality imbedded in the LLC operating agreement, so there will be many things about this endeavour that are simply not for public consumption. Suffice to say that this concept has been discussed at the DCI Board level, and that those corps who wished to participate have done so. Quote Link to comment Share on other sites More sharing options...
Slow Adam Posted May 26, 2006 Share Posted May 26, 2006 Wait until later in the year when you walk outside to get the mail and you're breaking a sweat :sshh: Maybe I'm just overlooking this, but is there any cost to the corps that participate in the fund? And if there is no cost, why aren't all corps taking advantage of this offer? I would assume there is some sort of buy in to this partnership, that's the only way it would work, i.e. you have to be able to spend the money to save the money. Quote Link to comment Share on other sites More sharing options...
81regiment Posted May 26, 2006 Author Share Posted May 26, 2006 (edited) I would assume there is some sort of buy in to this partnership, that's the only way it would work, i.e. you have to be able to spend the money to save the money. Yep. It not free - it does cost money. It is not free of risk - things like hurricanes can wreak havoc with the markets. It is indeed a partnership. The LLC was designed to operate on an ongoing basis. So for 2007, the membership might look different than it does today. It was designed for low cost of ownership, and interests can be transferred easily. When the 2007 tour is set (probably in the 4th quarter of 2006), the LLC can look at the tour, assess the anticipated mileage and costs, admit new members or retire old members, then engage in a hedging transaction for the coming season. Fuel could be hedged as early as January or February. Corps can hedge any portion of their exposure - they could hedge any fraction of what they think their fuel costs may be. It was constructed to be totally flexible with regard to how it is utilized by the members. The only thing that is not flexible is the hedging transaction itself - once it is set, it is set until the positions are liquidated. It is not a trading strategy - the aim is not to profit , but to protect the purchasing power. The LLC is not like a mutual fund, so ownership cannot be bought or sold at will. There are set entry and exit dates. Edited May 26, 2006 by 81regiment Quote Link to comment Share on other sites More sharing options...
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