Tesla's hidden billionaire: How a retail trader made US$7 billion

it means time to cash out your Tesla position.

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BKR88 said:
Tesla's hidden billionaire: How a retail trader made US$7 billion
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What I want to know is why would he want to now "unhide" himself? To get a photo-op with Musk? Flex his bragging rights? Smart investor he might be, but ain't so smart otherwise. If I were him, I would have stayed anonymous.
 
Quote from the news article in the OP:
“I believe in Elon’s great mission,” Leo KoGuan told the world via Twitter.

And with that one tweet in September, KoGuan — already a billionaire in his own right — began to dribble out details to believers and skeptics alike. More, the value of his supposed holdings soared and soared: to US$4 billion, US$5 billion — and, now, to more than US$7 billion.

Is it true? Could a single obscure investor, even one as wealthy as KoGuan, amass such a huge position in a company like Tesla with scarcely anyone noticing? Could he really have become Tesla’s third-largest individual shareholder, behind fellow billionaire Larry Ellison and none other than Elon Musk, the richest person in history?

Yes. Bank records provided to Bloomberg News by KoGuan and confirmed by people familiar with his investments show he owned 6.31 million Tesla shares as of late September. He also held 1.82 million options giving him the right to buy Tesla between US$450 to US$550 a share — contracts that are deeply in the money after the stock closed at US$1,114 on Friday in New York.
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He also held 1.82 million options giving him the right to buy Tesla between US$450 to US$550 a share — contracts that are deeply in the money after the stock closed at US$1,114 on Friday in New York.
[...]
Then markets cratered and his stake was almost wiped out in a cascade of margin calls.

“I lost almost everything,” KoGuan said.

He kept buying, following what he described as a simple playbook: buy short-term in-the-money stock options; take the profits when the stock goes up; use some of those proceeds to buy actual shares — and plow the rest into another options bet. In other words, double down again and again and again.
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Why does he get margin calls at all when he just buys long calls?
Something is fishy with these reporter clerk idis, as usual... :D
I think this guy rather short sells Puts, isn't it?
 
schizo said:
What I want to know is why would he want to now "unhide" himself? To get a photo-op with Musk? Flex his bragging rights? Smart investor he might be, but ain't so smart otherwise. If I were him, I would have stayed anonymous.
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Man, this is not possible if he is a 5+% investor in any company, as he then must disclose his identity in mandatory public record filings to the SEC...
 
earth_imperator said:
Man, this is not possible if he is a 5+% investor in any company, as he then must disclose his identity in mandatory public record filings to the SEC...
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Yes, if your stake in the company is more than 5%. However, according to the linked article in the first post, his holding of TSLA wasn't even close (see below). Any yet he decided to come out and expose himself to everyone's scrutiny. Now he's definitely under the radar of IRS.

KoGuan has been able to avoid the prying eyes of regulators and the investing public because he manages money only for himself and because his stake in Tesla — less than 1% — falls below the 5% threshold that requires public disclosure in the U.S.
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