Jump to content

Amount of cash in your portfolio


shalab
[[Template core/global/global/poll is throwing an error. This theme may be out of date. Run the support tool in the AdminCP to restore the default theme.]]

Recommended Posts

anyone used up some cash in last couple days? the index holds up well - but some of stocks got killed.. 10% - 15%.

 

This week was better than last. Even a few majors are coming around on WDC, and the rebound in ATPG was a nice surprise. With that said I am still looking for a few ways to raise cash and plan to hold onto what little I have.

 

Rabbitisrich - How do you feel about the changes at HALL, relating to the big owner being able to sell shares. SD has run quite a bit, but I think we could see $11 or more if the stock sell and new play works out. I have been thinking more and more about it, and they can only drill 250,000 worth of land. There has to be something planned for the other 60% outside of the new stock sell.

Link to comment
Share on other sites

anyone used up some cash in last couple days? the index holds up well - but some of stocks got killed.. 10% - 15%.

 

This week was better than last. Even a few majors are coming around on WDC, and the rebound in ATPG was a nice surprise. With that said I am still looking for a few ways to raise cash and plan to hold onto what little I have.

 

Rabbitisrich - How do you feel about the changes at HALL, relating to the big owner being able to sell shares. SD has run quite a bit, but I think we could see $11 or more if the stock sell and new play works out. I have been thinking more and more about it, and they can only drill 250,000 worth of land. There has to be something planned for the other 60% outside of the new stock sell.

 

I don't see any justification for the transaction that fits in with Schwarz's fiduciary responsibility. My bet is that Schwarz will not seriously impair the company for personal benefit ala Mozilo or Stronach. But it's true that any bet on HALL implies a degree of trust in Schwarz. In addition to the information asymmetry inherent in any financial, the equity portfolio is below the amount required for mandatory reporting. He could easily use the portfolio to improve quarterly returns in the Newcastle partnerships while hiding the trading losses in Hall's income statement.

Link to comment
Share on other sites

A couple mitigating factors include Schwarz's large personal holdings and the fact that he increased HALL stakes through controlled companies. This particular transaction probably reflects liquidity concerns rather than a change of intrinsic value.

 

There are a lot of conflicts of interest involved in running a hedge fund while managing the portfolio of a controlled company, and they will eventually emerge for better or for worse.

Link to comment
Share on other sites

  • 4 years later...

Thought this comment was interesting...

 

Should You Should You Be Mostly Cash Like Mohamed El-Erian?

http://seekingalpha.com/article/3052016-should-you-be-mostly-cash-like-mohamed-el-erian

 

 

Life after Pimco: Mohamed El-Erian on economics, politics and his hope for a 'Sputnik moment' - The Orange County Register

 

http://www.ocregister.com/articles/pimco-656718-erian-people.html

 

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...