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You can't simply get out of billion dollar positions in a day or so. It takes a while to set up these kind of positions and it takes a while to wind down these

You can't simply get out of billion dollar positions in a day or so. It takes a while to set up these kind of positions and it takes a while to wind down these kind of positions. Especially when they had to get billions of dollars from other companies to shore up their funds. Also, where were the market movement indicators that signify billions in transactions? Who were the sellers, who were the buyers? Until they show receipts, I would be very skeptical of this statement. Most likely, they are playing word games with "got out of short positions" phrase.

vmception 6y ago
The "days to cover" is reported publicly. It was 6 days, and based off the average volume. The volume increased by multiple orders of magnitude. Its been long enough to liquiditate.
tedunangst 6y ago
GME's entire float turns over on a daily basis. What volume numbers are people looking at that they conclude there hasn't been much trading?
kasey_junk 6y ago
MUST asset management unloaded a billion dollar long position in GME this week. It was roughly 3 million shares. GME has been trading over 25x that volume daily all week. If someone is telling you that Melvin is still in their position critically ask why. One explanation is that they are ignorant another is they gain in some way from that narrative. https://www.morningstar.com/news/marketwatch/20210128440/large-gamestop-shareholder-must-asset-management-sold-off-its-stake https://www.morningstar.com/news/marketwatch/20210128440/lar...
- cccc4all 6y ago
  The story doesn't say they unloaded all their positions this week. The story says "...disclosed Thursday ...no longer holds any shares of the videogame and consumer electronics retailer." Did they sell it all on one transaction? or multiple transactions over multiple days? weeks? months? How does companies normally wind down positions?
  - kasey_junk 6y ago
    I’m sure they didn’t sell it in one transaction. Funds either have their own specialist execution traders or outsource that to another firm (Citadel for instance offers execution services). Execution traders (and algos) entire job is to get in/out of large positions with the minimum amount of slippage. They due this by a lot of different techniques but at the minimum they will break up the position into lots of small orders across a variety of exchanges, dark pools, partners and other venues. Good execution traders will use their volume to create momentum swings in the symbols they are working on to get better prices than they would with small volume (running stops, filling in thin layers, etc.). It’s a constant cat and mouse game between them and the market makers. But you don’t need to be a good execution trader to unload into GME right now, its effectively free for a manager like MUST. There were price levels getting cleared of hundreds of thousands of shares at a time yesterday. All this retail volume and the blown up price means that someone wanting to clear a ton of shares has ready buyers who are not price sensitive. And with so much ROI on their books they don’t need to sweat small slippage like they might in a less overbought symbol.

vmception 6y ago

The "days to cover" is reported publicly. It was 6 days, and based off the average volume. The volume increased by multiple orders of magnitude. Its been long enough to liquiditate.

tedunangst 6y ago

GME's entire float turns over on a daily basis. What volume numbers are people looking at that they conclude there hasn't been much trading?

kasey_junk 6y ago

MUST asset management unloaded a billion dollar long position in GME this week. It was roughly 3 million shares. GME has been trading over 25x that volume daily all week. If someone is telling you that Melvin is still in their position critically ask why. One explanation is that they are ignorant another is they gain in some way from that narrative. https://www.morningstar.com/news/marketwatch/20210128440/large-gamestop-shareholder-must-asset-management-sold-off-its-stake https://www.morningstar.com/news/marketwatch/20210128440/lar...

cccc4all 6y ago
The story doesn't say they unloaded all their positions this week. The story says "...disclosed Thursday ...no longer holds any shares of the videogame and consumer electronics retailer." Did they sell it all on one transaction? or multiple transactions over multiple days? weeks? months? How does companies normally wind down positions?
- kasey_junk 6y ago
  I’m sure they didn’t sell it in one transaction. Funds either have their own specialist execution traders or outsource that to another firm (Citadel for instance offers execution services). Execution traders (and algos) entire job is to get in/out of large positions with the minimum amount of slippage. They due this by a lot of different techniques but at the minimum they will break up the position into lots of small orders across a variety of exchanges, dark pools, partners and other venues. Good execution traders will use their volume to create momentum swings in the symbols they are working on to get better prices than they would with small volume (running stops, filling in thin layers, etc.). It’s a constant cat and mouse game between them and the market makers. But you don’t need to be a good execution trader to unload into GME right now, its effectively free for a manager like MUST. There were price levels getting cleared of hundreds of thousands of shares at a time yesterday. All this retail volume and the blown up price means that someone wanting to clear a ton of shares has ready buyers who are not price sensitive. And with so much ROI on their books they don’t need to sweat small slippage like they might in a less overbought symbol.