How many HC pods just blew up?
Curious. Have anecdotally heard of a couple. Seemed like APLS / ARGX / BBIO all going against consensus in binaries in the same day a few weeks ago caused a chain reaction across all HC pods. There were also some insane moves on earnings. Trying to get a sense for how bad the carnage out there was. Seems like an insane amount of unwinding out there among fast money
Ignorant abt this. What exactly happened to HC?
I suspect that blew up a lot, but it's always hard to get the exact numbers until after the carnage. I know of a few personally that have been unwound.
There's been a lot of carnage this year in general among low net HC, as the short squeezes and momentum reversals coupled with crowded pod names going the wrong way has been brutal to any biotech-focused manager in low-drawdown environments.
fund they were at?
Know of at least one at ExodusPoint and one at Citadel, but I'm sure there are many more.
interested to hear more
Whyd they blow up?
What was the catalyst
Being on the wrong side of some of the catalysts mentioned in the above post + lots of short squeezes happening in biotech this year (most shorted basket was outperforming high quality/crowded long biotech for much of the 2023 until August). A decent amount blew up/forcibly de-grossed in July and may not have made it to August to realize the reversal that happened.
The lack of original ideas/aggressive crowding that happens in biotech, especially before catalysts, has always been dangerous if you're on the wrong side of a crowded name.
was TMO one of the crowded shorts?
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