Have you guys seen this?
https://ca.finance.yahoo.com/news/citadel-point72…
A top ex-SAC fund manager got blown up, partly related to the crazy runups instigated by subreddit traders from WSB. Hilarious but damn, I'd be sweating bullets running a market neutral fund in this environment.
I have a feeling there will be some kind of a response to all of this. every media outlet is reporting on it, influential people are not happy.
but yeah, any fund can blow up if enough people gang up on them
This also really makes the vocal short-sellers rethink how they operate (ie. Citron, Spruce Point, etc.)
Even Einhorn and the likes got into trouble with SEC for trumpeting shorts at Sohn conferences, but bad then we did not have robinhood.
it might be the end of the vocal short sales....
I am really gonna miss those 200-page decks that are most of the time either dead wrong or personal attacks on company management.
I thought ackman got short squeezed back in 2011 with his herbalife short because of icahn and retail investors?
So Uncle Carl was the OG Elon Musk / Chamath?
can't believe Elon Musk tweeted about this.. wow.
Why’s that? I mean he tweeted about Etsy at 7am EST this morning.... guy seems to just tweet whatever.
He hates short sellers, I actually surprised myself by predicting he would tweet, soon!
He hates short sellers, I actually surprised myself by predicting he would tweet, soon!
Melvin was a vocal Tesla short years back. It's payback.
Should make people think twice about betting on (and trying to induce) bankruptcy.
But yeah I’d be livid if my fund blew up due to internet trolls.
Short Hedge funds went though legal loopholes to drive short interest to 140%, which is downright obscene.
The WSBers simply realised this, figured a short squeeze was in the cards, and turned the loophole into a noose.
Legal loophole? If a company has one share that is bought, lent, sold, lent, then sold, the SI is 200% with no loopholes no....?
It's not the end of vocal shorts but places like Citron especially need to rethink how they do these.
This reminds me of a podcast I listened to with Reid Hoffman, founder of LinkedIn, and he said that if he could go back and change anything in his career he would have worked at Netscape to begin his career instead of doing a "safer" job. For reference, Netscape was the original internet browser and it got completely destroyed by Microsoft when MSFT came out with Internet Explorer - a free browser. Anyways, what happened with Netscape ended up defining the development of the internet era going forward and it just makes me think that the folks at Melvin are in somewhat of a similar spot as the software developers at Netscape in the 90s. They're obviously smart as hell and could work anywhere in finance they choose to, but they experienced this whole WSB situation from the inside and plenty of firms would kill to have an ex-Melvin analyst work for them. It would definitely suck to be in that situation and feeing the humiliation of getting wrecked by autists from Reddit in the short term, but hey only the resilient killers that really belong at the top of this finance shit make it out of situations like this and thrive
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