Posts filed under “Short Selling”
In light of this Wednesday morning’s commentary, a few emailers asked me were we stood after today’s action.
The short answer: We are now all cash. We have no positions long or short. We are actively looking for shorts.
I will post an update when we make a serious change in our tilt.
UPDATE: May 6, 2010 5:27am
Several readers wanted to know the reasoning behind this:
1) Greece/EU had nothing to do with our tactical rebalancing.
2) This was strictly a technical call — market internals, sentiment, duration of rally, volume were amongst the factors that came in.
3) This is not an end of primary trend expectation — rather, it is looking at the potential of a secondary trend.
4) Ideally, if we get lucky, we will see a rally over the next week, with deteriorating characteristics — that sets up a better entry for shorting new positions.
5) We had a very good Q1 with a handful of strong positions — EK, MGM NYT, THOR, C — so some of the thinking behind our move was locking in a profitable 1st half of the year. We can now look be very selective in identifying trading opportunities.
6) We are now concentrating on screening and identifying new short ideas . . .
William Ackman, managing partner of Pershing Square Capital Management, discusses the benefits of short-selling, Goldman Sachs’ fraud charges and more with CNBC.
Airtime: Tues. Apr. 27 2010 | 7:10 AM ET
Short selling is a key focus of the Goldman Sachs hearing Tuesday on Capitol Hill. James Chanos, of Kynikos Associates, and Bill Ackman, of Pershing Square Capital, share their insights.
Airtime: Tues. Apr. 27 2010 | 8:05 AM ET
Hedge fund manager Bill Ackman shares his parting shots with CNBC.
Airtime: Tues. Apr. 27 2010 | 8:54 AM ET
Interesting discussion by the always worth reading Mark Hulbert about a recent research paper on Short Selling. While I agree with the paper’s conclusion, it overlooks two major related issues regarding short selling. Let’s look at a few excerpts first: “Short-selling became particularly controversial during the recent bear market, when many of its practitioners turned…Read More
What are the pros doing? I’ve been speaking with various institutional investors, and I can tell you there is little in the way of uniformity of thought. Here we are, up 70% or so from the lows of over a year ago, and there is no consensus — which is probably a good thing. What…Read More
Michael Lewis’ new book “The Big Short: Inside the Doomsday Machine” looks at the financial meltdown.
Watch CBS News Videos Online
Watch CBS News Videos Online
There are numerous web extras here:
Wall Street: Inside the Collapse
Author Tells “60 Minutes” What Led to Wall Street Collapse and Who Predicted It
“Dick Fuld is going to be bankrupted and he’s going to spend the rest of his life in court fighting legal battles. There maybe others forced to do the same.” -Dick Bove of Rochedale Securities. Bove had all nine volumes of the examiner’s report printed and bound. (Barrons) > As it turned out, Lehman Brothers…Read More
Here is my quote of the day: “Those so-called adults who fuss about short sales are really silly. What competent grown-up would short a stock after – that’s after – it has fallen 10%. Don’t these people understand how the stock market works? Selling short on an uptick is sound, to say nothing of having…Read More
And speaking about not understanding what caused the bear market, we have this recent SEC action: “The Securities and Exchange Commission narrowly approved curbs on short selling, addressing what some consider a cause of the 2008 financial crisis despite criticism that there was no evidence to support the move. The commission voted 3-2 on party…Read More