Wednesday, Jun 25, 2008
There is much more money being put to work by hedge funds now
independent.co.uk: Revealed: Hedge fund managers betting on plunge in bank shares
The American hedge fund group Harbinger Capital Partners revealed that it has made a significant bet on HBOS's price falling, while its UK counterpart GLG admitted it is targeting the rival mortgage bank Bradford & Bingley, as investors were forced yesterday to disclose their short positions to the market for the first time.
Posted by malct @ 11:54 AM (294 views) Add Comment
3 Comments
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1. icarus said...
This story was in a MoneyWeek article posted here yesterday. It made the point, not made in this report, that Harbinger's large short position in HBoS, made public under the FSA's new rules, was a signal for others to short the company's shares. This achieved the opposite of what the FSA was trying to achieve (protect the share price of companies (banks?) during rights issues, when share prices are at their most sensitive). The words 'hoist' and 'petard' came to the fore.
2. mark wadsworth said...
Yup. It's probably time to write some call options on oil, food and banks and use the money to buy put options on hedge funds. Or something.
3. shipbuilder said...
Can anyone truly say that this financial system benefits our world?
Anyone for bets on how many pensioners freeze this winter? How many people commit suicide due tio financial ruin? Anyone for bets on the starving and poor? Is this moral behaviour?
What sort of society do we live in where this is not only accepted behaviour, but something to aspire to?