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4th largest shareholder in SVB 4th largest shareholder in Signature Bank 5th largest shareholder in First Republic bank. Lets call it 3 out of 3.
by hjalle 4y ago
4th largest shareholder in SVB
4th largest shareholder in Signature Bank
5th largest shareholder in First Republic bank.
Lets call it 3 out of 3.
- Ekaros 4y agoDo they own any other banks? Time to short?
- radicaldreamer 4y agoDo you think any of these large holders are hedged?
- TacticalCoder 4y agoThat question comes out often but... Apparently the $2bn realized loss that SIVB took was only about 1/10th of their total unrealized gains. Numbers are floating around now saying there's about $620 billion of unrealized losses among the various banks at the moment (due to the same issue of rates going up after trillions were printed). Which institution can honestly offer any kind of product hedging against $620 billions of losses without, itself, going bankrupt should people try to exercise their hedge? Basically the headlines, instead of being: "SVB goes down for it has $20 bn of unrealized losses" would be, instead, "SVB goes down for it has $20 bn of hedged unrealized losses, but the institution which is supposed to cover the hedge is bankrupt for it miscalculated and cannot cover $620 bn".
- sidewndr46 4y agoHow would you short a pension fund?
- deleted 4y ago[deleted]
- simse 4y agoShort the other banks they might have stocks in, is what I think they mean
- Ekaros 4y agoNot them, but what ever other banks they hold. As they seem to be good at picking the bad ones.
- moffkalast 4y agoWork till you die.
- fifilura 4y agoApparently they are limited to investing 5% of the fund's money in banks. Turns out they used 2 of those 5% for investing in these banks. It is not a disaster though, not even close to a disaster. And talking about banking and market economy, they most likely gained much more money from that than they lost. It just happened very quickly .
- YeBanKo 4y agoNot a disaster, but seems conspicuous. Looks like there is a connection between Signature and SVB and First Republic had a big exposure to SVB. So their risk exposure to a single entity such as SVB was pretty high for a pension fund.
- fifilura 4y agoOf course, they made a mistake. I think what they did was invest too heavily in up&coming banks rather than traditional banks. With the rationale that their technology was more modern.
- hjalle 4y agoNot that I know of. However they sold their shares in the somewhat stable swedish banks Handelsbanken and Swedbank in the hunt for the more exotic, nieche bank stocks. The CEO of Alecta even said in an interview that the 50%+ drop of "First Republic bank" isn't a loss because it hasn't been realized yet. It wouldn't surprise me if he had to leave before the week is over.
- cinntaile 4y agoLast year they sold all their stocks in the Swedish banks Swedbank and Handelsbanken (they held them for 71 years) to buy SVB and similar banks because they wanted to have more profits. It'll take a while to recover.
- barbarbar 4y agoHoly sh*t. That is just beyond horrible. But it also shows how difficult it is to evaluate a stock. If a pension fund can't - then how should the average amateur investor do it.
- raverbashing 4y agoThe top 3 largest holders of SVB were: - Vanguard Group 11.25% (of outstanding shares) - Blackrock 8.05% - State Street 5.21% JPM was n. 5
- przemub 4y agoWouldn't that be the funds they offer? So it's not them directly who lost.
- okhobb 4y agoCorrect. It would be hard to find a stock where some combination of these players were not the largest shareholders based on the aggregation of all their managed funds.
- Arrath 4y agoAh crap I haven't checked my Vanguard yet.
- darth_avocado 4y agoThis is the biggest problem with retirement funds that no one talks about. There is so much money available that inevitably you end up with investments that are risky despite diversifying.
- lotsofpulp 4y agoWhy is it a problem with broad market index funds? Some investments will underperform, and some will overperform. All you should care about is keeping up with inflation, which it should since it is invested in a representative set of the businesses that make up the market.
- ticviking 4y agoThe risk becomes that the pension is holding up value and price discovery is damaged.
- mint2 4y agoOh so like a Japanese index fund invested in 1990?
- lotsofpulp 4y agoDid they have 0.03% expense ratio global equity index funds in 1990?
- dmarchand90 4y agoJapanese funds have high dividend yield, I think like 5% and up returns are common. Very annoying for the layperson that dividend returns are often much harder to find than stock value
- ticviking 4y agoOne of the things that most frustrates me about pension funds and even 401k funds is how my retirement is managed by someone who has no concern for my values and could in fact use my money to oppose my values and best interest(as a whole) in the pursuit of increasing gains.
- newaccount2023 4y agotheir fund manager was working a meme and it backfired