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How much did SAC lose on Volkswagen?
- Thread starter mingsphinx
- Start date
http://money.cnn.com/2008/11/10/news/companies/news_SAC.fortune/?postversion=2008111016
Just damage control? From the article it appears that SAC's losses on VW was limited to just one fund -- CR Intrinsic -- but how true is it? At any rate, it is a clear admission that they have flushed $2 billion down the toilet. If the problems had in fact been ring fenced, then SAC should still be sitting on more than $5 billion in cash. Why on earth are they raising money? Citadel and Greenlight are raising funds because they have both suffered losses and have loads of illiquid assets that are presently retardly undervalued. SAC went to cash and this makes their capital raising activities very puzzling.
Just damage control? From the article it appears that SAC's losses on VW was limited to just one fund -- CR Intrinsic -- but how true is it? At any rate, it is a clear admission that they have flushed $2 billion down the toilet. If the problems had in fact been ring fenced, then SAC should still be sitting on more than $5 billion in cash. Why on earth are they raising money? Citadel and Greenlight are raising funds because they have both suffered losses and have loads of illiquid assets that are presently retardly undervalued. SAC went to cash and this makes their capital raising activities very puzzling.
Quote from flytiger:
You just don't get it, do you? They're going to jail.
Are you guys that dense? A govt sunk them on purpose, with a wink and a nod from our side. You can't figure that out.
There's definitely a campaign to take out many of the hedgies, as evidenced by the sudden short selling ban followed by the sick short squeeze. The hedges were separated from their short positions, then, had their long positions decimated by the crash and the increased margin requirements.
This is why I think the losses were greater than what is being reported. Many hedges are in desperate need of a strong last quarter. So, it's not surprising that they would overweight a potentially big money making position.
It's also why I think we're gonna go sideways for the rest of the year. The real financial establishment isn't gonna give the hedges a shot of jumping on a big trend one way or another.
Quote from Topsurfi:
In my understanding from this situation the best thing is to short Porsche. Right now all those super smart traders have calculated how much Porsche will profit from the selling of the 5% stake at 500Euro or about thats why Porsche stock was lifted so much last 2 days. Problem is, they will never be able to keep that money and will most likely loose much much more.
But OK, I think I am the only one here thinking that way so I will shut my mouth now and let the other people cheer Porsche for how many Hedge funds they killed, bravo. Poor little boys. [/B]
just for the records, my short Porsche at 66.5 Euro is now at 52 Euro. Think some more people discovered Porsche has some problems, not only SAC.
VW Chief
Scandal-hit Matthias Mueller is finally out as CEO at Volkswagen Group, which has installed in his place Herbert Diess, a noted cost-cutting advocate. Diess, who now controls VW as well as many other carmakers within the group, will retain his role as Volkswagen brand chief. The group is being restructured, with three new core divisions including "volume" (VW, Skoda, Seat), "premium" (Audi), and "super premium" (Porsche, Bugatti, Lamborghini and Bentley). Autocar
Scandal-hit Matthias Mueller is finally out as CEO at Volkswagen Group, which has installed in his place Herbert Diess, a noted cost-cutting advocate. Diess, who now controls VW as well as many other carmakers within the group, will retain his role as Volkswagen brand chief. The group is being restructured, with three new core divisions including "volume" (VW, Skoda, Seat), "premium" (Audi), and "super premium" (Porsche, Bugatti, Lamborghini and Bentley). Autocar
Most of the hedge fund billionaires who are blowing up AUM are "blowing up" are doing it mostly with OPM. In the meantime they keep collecting 2/20 and get richer. OK only collecting 2 if they are not profitable.Forbes reported that Steve is worth a whopping $8 Billion.
So I can't image him "blowing it up"
This is very different from us full time small mom and pop retails who eat our own kills, or starve if no kills and let the market takes money from us.
In my next life I want to be a hedge fund manager.