For readers of Money Stuff who haven't paid much attention to the Luckin Coffee controversy yet, this anonymous white paper makes fascinating reading.https://twitter.com/muddywatersre/status/1223274746017722371 …
-
-
(Which is one reason why it's much, much more attractive as a short seller to say "Oh I think that multi-billion dollar enterprise is a straight up fraud and that all senior management is going to jail" than "Wow the consensus overvalues same store sales growth by ~10%.")
Show this threadThanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Why do you say *much* more accurate? For a long/short fund, the hurdle to overcome (aka alpha required) to break even is Interest Paid on Margin Loan minus Interest Received on Short Collateral, correct?
-
At IB that is upwards of 1.5% per year for a small investor, but <1% for larger accounts. That's not nothing, but also not really *all* that high either. Of course your second point still remains, that the risk management/"mechanics" of the short are crucial to get right as well
- 2 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.