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When Icahn does it he's a genius. When the street is challenged by a new distributed and crowd sourced hedge fund coordinated on an online forum they're fools.
by wp381640 6y ago
When Icahn does it he's a genius. When the street is challenged by a new distributed and crowd sourced hedge fund coordinated on an online forum they're fools.
I personally don't care if more people maintain this belief - but more and more funds are definitely starting to pay attention.
You could do this once a month - pick a heavily shorted low/mid-cap company and squeeze the crap out of it and reap what PE firms and institutions have sown
I fully expect the establishment to pressure the SEC to crack down because it's a new challenge and they're losing.
- tootie 6y agoHedge funds earned their name by their ability to hedge. Professional risk takers can balance their portfolio by placing multiple bets where they can afford a few of them coming up empty because they only need one to hit big. A keyboard commando betting their 401k on one stock is running a much bigger risk.
- justsid 6y agoGiven how hard Melvin Capital is going down right now, it doesn’t seem like they are all that good at the hedging bit. But sure, let’s pretend the big guys are insanely wise and all knowing and never play dirty.