3 ms·
>Could do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding
by rhapsodic 8y ago
>Could do similar things to what Mark Cuban did to hedge his exposure of Yahoo stock after the purchase of his company. Basically shorting against your holding [1].
I interpreted that article to mean that he shorted the sector (Internet) that his holding (Yahoo) was part of, but without appreciably shorting his actual holding. (less than 5% of the fund he shorted.) Had the Internet sector (and therefore the fund) went up while Yahoo went down, he could have lost from both directions.