Shadowing activist short-seller

Discussion in 'Strategy Development' started by cdery6, Sep 28, 2019.

  1. cdery6

    cdery6

    Hello Guys!

    I am building strategy where I would short a stock minutes after the issuance of a negative report from a well-known activist short-seller. It could be day/swing trading.

    Ever come across online content exploring that strategy?

    Thanks!
     
  2. ETJ

    ETJ

    Jim Chanos did something very similar at Guilford securities in the 80s. A research call with his institutional clients and they would do their shorting with the firm - which was their way of paying for the research. As long as all the compliance stuff is in place and all the proper disclosures are in place and there is still stock around to short. He runs a fund today which is easier from a compliance standpoint. Kicked ass on Baldwin United where he was the first to pan it.
     
    vanzandt likes this.
  3. ETJ

    ETJ

  4. I did that (not minutes, seconds after) and made money especially after the China Hustle activist short reports. It was very profitable, but I stopped when it became too popular. It is not profitable today. You can backtest if you do not trust me. At least not short term.
     
  5. ETJ

    ETJ

    W are still in one of his last ideas - I think a lot depends on your time frame - we have the ability to hold for some time. Up a little over 12 points and we'll stay short until we get bought in or he advises a cover. Commission, on a relative basis, a huge, but worth it.
     
  6. vanzandt

    vanzandt

    I had no idea Chanos was involved with Baldwin... wow.
    That story, from start (1857) to finish... is one for the best of the B-Schools to forever study.
    Sad really.
     
  7. ETJ

    ETJ

    Baldwin and Coleco when he was a Guilford. Both massive home runs - certain there were other ideas that didn't work as well.
     
  8. vanzandt

    vanzandt

    upload_2019-9-29_20-23-3.jpeg
     
  9. cdery6

    cdery6

    Thanks for the insight. Maybe my strategy is different from yours And we can both learn– If you don't mind walking me through your strategy?

    Especially: entry/exit/return objective
    when you say seconds into the publishing, Do you start counting from the root publishing website (i.e. the short seller website)Or maybe a Twitter post.

    How many times did you do it?