What Destroyed Tito Trinidad Will Never Touch You?

Juan Félix “Tito” Trinidad García was born on January 10th in 1973. He’s best known as Tito Trinidad here on his home island of Puerto Rico.

Tito is perhaps the best boxer in Puerto Rico history.

He doesn’t do drugs. Nor does he hit or fool around on his wife. He and his family are poster candidates for the healthy Puerto Rican or stateside American family.

He Lived the Movie “Concussion”

The athlete Tito Trinidad paid for his $63 million dollar fortune the hard way. He defeated lineal champion Oscar De La Hoya for the WBC welterweight belt in 1999.  After a sequence of successful defenses of his title Tito grossed $90 million in a career that was managed and coached by his father Felix Sr.

Dollars to Donuts (Errr … Biscuits)

A sinister fate befell. Tito woke up one day penniless.

Jose Ramos became famous in the boxing world as Tito Trinidad’s promoter.  This was odd since the guy was a salesman for Puerto Rican Rovira Biscuits cookie brand in Ponce.  Yet with no background Ramos facilitated deals between Tito and Don King — the famous boxing promoter. Ramos helped create deals for Tito Trinidad with greats such as

  • Oscar De La Hoya
  • Pernell Whitaker
  • Yori Boy Campas
  • Héctor Camacho
  • David Reid.

Ramos bought $63,000,000 dollars in shares of a Puerto Rico municipal bond mutual fund for the Trinidad family over Tito’s career. When the Puerto Rico bond crisis hit in 2010 the value of the local government municipal bonds dropped by over half.

Investors who owned Puerto Rico municipal bonds simply waited. They got fifty cents back on the dollar when the bonds matured.

And $31.5 million recovered would have afforded Tito a fine lifestyle.

Attack Of The Sith Lords of Financial Sewage

Not so with the “deal” that UBS and Banco Popular created by structuring those same bonds in a mutual fund. Ridiculous sales loads motivated brokers to promise the moon to hawk shares.

These were the same ilk that tanked our economy as portrayed in the Oscar winning movie, “The Big Short.” But few Puerto Rican investors understood how this works.

A mutual fund owner holds a share in the fund.  Hence Tito did not own the bonds outright.

The value of a share in the fund dropped by over 95% by 2010 as Puerto Rico government default risk skyrocketed.

Then the fund collapsed as claimants tore it down. The Trinidad family was wiped out.

A Simple Solution

I just published a new course on bond portfolio management. After reading this story I am sure you will not want to miss it.

What would happen to you if you inherited a large portfolio of bonds?  Could you handle it?

Enroll now for a measly $10 to gain access to a training that could save your financial life … as it would for that of Tito had he had only known. -Doc Brown

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