This excerpt taken from the WEN 10-K filed Mar 1, 2007.
Our investment of excess funds may be subject to risk, particularly due to use of leverage and the riskiness of underlying assets.
From time to time we place our excess cash in investment funds managed by third parties (including the Management Company). Some of these funds use substantial leverage in their trading, including through the use of borrowed funds, total return swaps and/or other derivatives. The use of leverage generates various risks, including the exacerbation of losses, increased interest expense in the case of leverage through borrowing, and exposure to counterparty risk in the case of leverage through derivatives. However, volatility in the value of a fund is a function not only of the amount of leverage employed but also of the riskiness of the underlying investments. Therefore, the greater the amount of leverage used by a fund and the greater the riskiness of a funds underlying assets, the greater the risk associated with our investment in such fund.