Confusion leads hedge fund to reveal its shorting of Northern Rock

Discussion in 'Trading' started by ASusilovic, Oct 10, 2007.

  1. Europe’s second-largest hedge fund yesterday mistakenly exposed its large-scale shorting of shares in Northern Rock, the troubled bank, after a miscommunication with the Takeover Panel.

    GLG Partners, a $19 billion (£9 billion) fund manager with Sir Howard Davies, the former Financial Services Authority chairman, on its advisory board, yesterday told the London Stock Exchange that it had failed to make trading disclosures between September 26 and October 5.

    The hedge fund manager blamed “human error” for its lapse and disclosed that it held short positions on more than 3 per cent of Northern Rock stock via contracts for difference. It is thought that up to 50 per cent of Rock’s stock is currently being shorted.

    In a farcical series of events, it is understood that GLG told the Takeover Panel of its activities on Monday night and that the Panel told it to alert the market as soon as possible.

    Ha, ha, ha...It would be so funny to see this "risk free" trades being hurt !!!!
  2. Northern Rock + 25, 27 % ! HA, HA, HA !!!!

    Somebody get burnt !!!!!