LIQUIDITY

"As the old saying goes: Liquidity is a coward, it disappears at the first sign of trouble"  Barton Biggs

"When making an investment, it is important to understand how easy it might be to sell later, a feature known as liquidity.  The lack of liquidity in hedge funds and in real estate would prove costly for investors in the 2008-09 recession" Ed Thorp

“When over leveraged markets begin to decline, the preference for liquidity becomes all-consuming, like the life-or-death struggle for a single life preserver thrown to non-swimmers when a boat capsizes. In an instant, all civility is suspended and everything is for sale at almost any price. Once uncorrelated assets begin to share a common fate – they sink together” Frank Martin

“In truth liquidity is closely correlated with investment fashion. During a market panic the liquidity that seemed miles wide in the course of an upswing may turn out to have only been inches deep” Seth Klarman

“All market look liquid during the bubble, but’s it’s the liquidity after the bubble ends that matters” Colm O’Shea

“We’re very thoughtful of liquidity.” Lee Ainslee

"We are always in the most liquid securities.  If we get it wrong, we get out immediately"  Martin Taylor

“The liquidity of an asset often depends on which way you want to go … and which way everyone else wants to go” Howard Marks

“Focus on liquidity, so that you can get out if you’re wrong. Because there’s nothing more scary knowing that you’re wrong and you can’t get out.” James Dinan

“You can have all of the assets in the world you want, but if you have no liquidity it doesn’t matter.   Liquidity equals value. At no time in my career has it ever been more clearly brought home to me than in the 2008-09 period. If you had liquidity, you had value. … Everything comes down to liquidity, everything comes down to exit strategies, everything comes down to knowing when you get in how you are going to get out.”  Sam Zell

Liquidity is really worth the premium that I think investors attach to it. “ James Dinan

Liquidity is definitely a now-you-see-it-now-you-don’t phenomenon. It is a lack of liquidity that turns a decline in asset prices into a panic” Paul Singer

Liquidity can be illusory. As Louis Lowenstein has stated ‘In the stock market, there is liquidity for the individual but not for the whole community’” Seth Klarman

“You don’t know the value of liquidity until you need it and don’t have it” Dennis Bryan

Liquidity is ephemeral: it can come and go” Howard Marks

“It's like a 5-lane highway going in and goat trail coming out..” Kyle Bass [on equities liquidity]

"Trying to sell an illiquid stock in a down market brings to mind the galley slaves in Ben-Hur, chained to their bench while the ship sinks"  Ralph Wanger

"We are very concerned about liquidity" Mark Kingdon

“Leverage, concentration and illiquidity are the three things that can kill you” Steve Cohen

"A factor often overlooked in reducing stock-picking risk is liquidity.  Despite some portfolio managers' belief to the contrary, all investors are human, and, therefore will make mistakes.  The ability to recognise these errors and recover from such mistakes is a critical factor in performance.  The liquidity of each underlying position drives the ability to quickly reverse course and mitigate the cost of errors" Lee Ainslee

"Illiquid assets and the possibility of capital flight: there are few surer recipes for investment disaster"  Howard Marks

"Managing liquidity risk is one of the most important jobs of a fund manager"  Marathon Asset Management

"Liquidity helps protect us from permanent losses.  We do make mistakes, and when we make a mistake, we sometimes wish to exit the mistake quickly"  Ed Wachenheim

"When you are managing risk in a portfolio, you always have to remember that there is a possibility of a catastrophic outcome.  Markets are prone to extremes, both up and down.  In good times, we all operate under the assumption that liquidity is a constant, and that if a position is wrong, you can expeditiously exit it with only minimal damage.  I learned the hard way that in a market meltdown, not only does liquidity evaporate, but prices can fall so steeply that all decisions have the potential for serious adverse consequences." Barton Biggs