Porsche after all owns many times its market cap in VW shares so the trade was obvious...
This has been a disastrous trade. Plenty of hedge funds got hurt bad. Most of them are still long Porsche.
When I suggested the only responsible trade was short Porshe I was teasing. A serious tease because Porshe is playing with fire and there are ways that Porsche could go bust. But it is not a position I would put on.
Calling it "the only responsible trade" was a tease. Pure and simple...
Sorry if it did not translate to print.
John Hempton
have you been sued yet? :p
ReplyDeleteI thought it was clear. In any case, I really enjoy your blog. Keep up the quality, even if it means fewer posts. Thanks for sharing!
ReplyDeleteHi John, if you get a chance, could you (or anyone else so inclined) please explain why the long Porsche/short Volkswagen is an obvious trade when Porsche owns many times its market cap in VW shares? Regards, Jonathan.
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