Posts filed under “Short Selling”

No Shorting. That’s the Rule.

A long/short hedge fund manager of my acquaintance went to short some Morgan Stanley (MS) via a B/D that clears through Wachovia:

The Trader comes back: "Wait a second — that’s on the list — I cant short that."

The Fund Manager says: No, I don’t want to Naked Short it, we have already located a borrow — this is a clean, legitimate short sale.

Trader: Nope, we clear through Wachovia — and its on the list – NO SHORTING THESE 19 PRIMARY DEALER NAMES — PLUS FANNIE AND FREDDIE — AT ALL.

Fund Manager: That’s ridiculous — how can you not execute a legitimate   borrowed short?

Trader: Wachovia. Dems da rulez. You have to go elsewhere.

Fund Manager: Consider it done.


Postscript:  FM added to his Morgan short elsewhere, and initiated a new Merrill Lynch (MER) short. I don’t know what it says about Wachovia that they won’t even allow shorts in those names (deep doodoo??).

I am paraphrasing Jim Grant, but "Shorting is the financial world’s equivalent of free speech."

Category: Short Selling, Taxes and Policy, Trading

Another Wild Ride On Wall Street

Category: Markets, Short Selling, Trading

Quote of the Day: James Montier

Category: Data Analysis, Earnings, Short Selling, Trading

Paulson & Co Opening New Fund to Re-Capitalize Banks

Category: Derivatives, Hedge Funds, Short Selling, Trading

Those Damn Short Sellers Are Just Killing It!

Category: Financial Press, Short Selling, Trading

In Defense Of Speculators

Category: Markets, Short Selling, Trading

Fed: No Discount Window for FNM, FRE

Category: Federal Reserve, Legal, Psychology, Short Selling, Trading

About Those Companies Brought Down by Rumors . . .

Category: Corporate Management, Credit, Derivatives, Psychology, Short Selling, Trading

Lehman Brothers $20 Price Target Complete

Category: Quantitative, Short Selling, Trading

Short-Sellers, The Ackman Approach

Via the WSJ Deals Conference:

Category: Short Selling, Video