http://www.telegraph.co.uk/finance/...ontroversy-in-the-ultimate-short-squeeze.html Great article from the Telegraph.
How many people with former Lehman accounts had this position on? No one has said how these trades are being unwound. Thats probably the center of the problem.
Still waiting for SAC to say something on Volkswagen. Look at how they have dissected Greenlight and TPG!
SAC say something about VW? I think not. They don't do that kind of thing. Goldman just received 2 billion in bailout money. Lobbyists for hedge funds are pressing hard for their share of the giveaway. Let's see which hedge funds get the largest piece of the pie. That's the only information that will be forthcoming about how deep the damage goes.
One of SAC's funds was down ~14% in October despite the move to cash. Got to remember that the first week of October was horrible and they went public with the move to cash right after the bottom so it is possible that they lost that 14% before then and stopped the bleeding. Anyway that puts this particular fund down over 20% on the year. SAC has an intl fund and has other accounts, such as steves private trading portfolio, which might have held the volkswagon trade and you won't find these results being made public. If I had to guess I would say that these other accounts are down more than 20% just based on how they are typically structured. For a guy who has never had a losing year, down 20% must have him fuming. I'm glad I'm not there for him to take his frsutrations out on!