Amaranth, the hedge fund that is blowing up, is probably going to be forced to liquidate several billion dollars worth of stocks. I'm noticing most of the stocks in their portfolio: http://stockpickr.com/portfolio.php?id=364 were down pretty big yesterday. Either they are shorts now or, (I don't short that much for fear of squeeze) they are probably buys in about four or five days. - James
There was another thread suggesting, they werent that deep underwater, overall-nasty, but not so shocking . Depends who's holding the other side of it, can they find a backer to work with them in taking out the usual vulture plays?
They will certainly be getting redemptions that will cause them to see off otherwise good stocks irrationally.
Notice the massive volume spike in many of their holdings last friday a.m. Would that be their broker/dealers providing liquidity? If so, why wouldn't they have been handled as private transactions?
Hmmm. Sounds strangely like what happened to Cramer's fund as recounted in "Confessions of a Street Addict".