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What ever happened to Elon for pumping his stock causing it to enter the S&P500 and causing index funds to buy? That sucks because now I own lots of meme stock.

What ever happened to Elon for pumping his stock causing it to enter the S&P500 and causing index funds to buy? That sucks because now I own lots of meme stock. Also, don't short sellers literally do what is described in the article?

rogerrogerr 9mo ago
If you don't like $TSLA being in your various index funds, isn't it relatively trivial to concoct a short position that offsets your net shares owned? All the indexes publish what the index is comprised of, I bet if you told ${AI} all your positions it would go figure out what your net $TSLA position is. I think $TSLA valuation is insane, but I've seen what happens to people who short it...
- mw1 9mo ago
  It’s not trivial to concoct a short position in TSLA to offset your index holdings. For one, it has large borrowing costs. You already admit that short sellers haven’t fared well, and shorting over a long time period can be very costly. Concocting a short position to offset one’s long-term index holdings requires being fairly accurate with timing and is very different than just wishing it wasn’t in there because you imagine that eventually the bill on that will come due, even if it’s years down the line. If I’m wrong, I’d love to see a cheap way to do it over a 5-10 year period.
  - ctchocula 9mo ago
    Direct indexing will soon be able to provide that functionality of giving you S&P 500 stocks minus A, B and C companies you don't want to hold. However, cheap and reliable direct indexing brokerages aren't out there yet. Hopefully more competitors show up and help lower the prices for everyone.
recursivecaveat 9mo ago
The criminal complaint posted above alleges that he was not truthful, which presumably a 'reputable' activist short selling firm would be. The other difference I suppose would be buying positions with horizons longer than 1 week, so that you are exposed to the actual fundamental performance of the company instead of just the immediate reaction to your publicity. > To maximize the impact of Citron’s commentary on the price of a Targeted Security, defendant LEFT bolstered Citron’s credibility through false and misleading statements about its research staff, process, independence, external investors, and economic incentives.

rogerrogerr 9mo ago

If you don't like $TSLA being in your various index funds, isn't it relatively trivial to concoct a short position that offsets your net shares owned? All the indexes publish what the index is comprised of, I bet if you told ${AI} all your positions it would go figure out what your net $TSLA position is. I think $TSLA valuation is insane, but I've seen what happens to people who short it...

mw1 9mo ago
It’s not trivial to concoct a short position in TSLA to offset your index holdings. For one, it has large borrowing costs. You already admit that short sellers haven’t fared well, and shorting over a long time period can be very costly. Concocting a short position to offset one’s long-term index holdings requires being fairly accurate with timing and is very different than just wishing it wasn’t in there because you imagine that eventually the bill on that will come due, even if it’s years down the line. If I’m wrong, I’d love to see a cheap way to do it over a 5-10 year period.
- ctchocula 9mo ago
  Direct indexing will soon be able to provide that functionality of giving you S&P 500 stocks minus A, B and C companies you don't want to hold. However, cheap and reliable direct indexing brokerages aren't out there yet. Hopefully more competitors show up and help lower the prices for everyone.

recursivecaveat 9mo ago

The criminal complaint posted above alleges that he was not truthful, which presumably a 'reputable' activist short selling firm would be. The other difference I suppose would be buying positions with horizons longer than 1 week, so that you are exposed to the actual fundamental performance of the company instead of just the immediate reaction to your publicity. > To maximize the impact of Citron’s commentary on the price of a Targeted Security, defendant LEFT bolstered Citron’s credibility through false and misleading statements about its research staff, process, independence, external investors, and economic incentives.