The funny thing here is, Porsche pulled off the throttle before these funds were totally choked and dead. they inflicted pain but left the damaged living. Cohen is one of those guys who goes for the juggler. He never would have initiated teh 5% selling that porsche did, instead he would have purchased more to run teh squeeze deeper and to profit more. Cohen has no morals which is ultimately why people dislike him. His own traders have talked about how he trades and how he engages in activities that provide him that advantage (legal or otherwise). Today those traders are talking about how SAC took down Lehman. If true, he would have bit the hand that fed him.
Porsche did the smart thing by allowing the squeeze to resolve otherwise the trades might have been broken. What I want to know is how much SAC lost on the Volkswagen trade as they are now looking to raise money. Not only are they opening up to new money for the first time in a very long time, they are doing so after publicly proclaiming that they are sitting on a mountain of cash. The story just does not sound right.
The suggestion that people who are interested in SAC's losses on Volkswagen are simply vicious and jealous is offensive. Let me lay it out again for those who insist on painting others in a negative light: 1. SAC tells the world that it has shifted out of securities into cash 2. Short squeeze on Volkswagen happens; it is estimated that losses of US$40-50 billion are incurred by hedge funds and SAC is named as one of institutions that got caught 3. SAC seeks to raise additional capital Why would a fund that is all cashed up raise more money? If Citadel talks of fund raising it would be understandable. But SAC claimed to have more than US$7 billion in cash just a couple of weeks ago. How much of those US$40-50 billion in losses on Volkswagen belong to SAC?
Let me lay it on the line for you. The game is over. When you get governments willfully crushing them, it's over. The sleight of hand, hiring lawyers making 1500 an hour, sleight of handing trades, bribing regulators and politicians, it's over. End of story. All that's left is the perp walk. Get it? There is nothing to admire here. Ever. Unfortunately, Pensions, States, Life companies, fell for the scam. Now, we'll get to bail them out. You already saw Calpers lose 48bb, and say they would go to employers (school districts, municipalities. ) How do you thnk they last that much? They invested with hedge funds.
Porsche will be sued of market manipulation and they will have to pay lots of billions to the hedgefonds that suffered. The next big looser in this game will be Porsche.
to me this is all trading. if publicly trusted money has been corrupted by bribes or payoffs and our gov't regulators don't have the balls to put both the "briber" and "bribee" in jail - we are getting what we deserved. Its a cycle of reform to corruption and now we are ready for reform. What is really amazing is how fricken stupid and greedy these hedge fund guys are. To even a casual observer the noose was tightening. Why not take your billions and be happy. In the end these guys were just plain stupid. Someone bigger wasn't going to take them down? It was either going to be the gov't, the courts, or a really big company. Short VW and not be aware of the potential for a squeeze was just plain stupid. We saw what Kerkorian did with GM. There is always a hunter and the prey in the markets. These guys should have been crushed by porsche because they were stupid. This was so stupid - I wonder whether guys could trade a futures index without info. Perhaps it was all access and no talent.... I have lost a lot of respect for their trading talent. its like home run hitters and juice. What if you were corrupt - paid off your sources or took market juice. Screw these guys - I have no animosity towards shorters - I make more money being short. I am just tired of seeing idiots on juice making a fortune and getting accolades.
Yea, I'm sure SAC bet the whole farm on one trade idea..give me a break. I was hoping the bear market would wash the morons off this board but it only appears to be getting worse.