The Biggest Company in the World

by rrusczyk, Oct 28, 2008, 6:10 PM

Today, was briefly Volkswagen!

This is one of the most amusing trading stories I've ever seen. Here's some background. Here's the chart.

Hilarious. I'm wondering how much of our bailout money was "invested" in this stupid trade.

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You know what is ironic: These hedge fund guys are kicked by the vehicles they have in their garage! :D Nothing is impossible in Germany!

Due to its recent volatility the proportion of VW in the DAX was reduced. Many guys who sold short the VW shares did not expect/anticipate the move by Porsche. I think London based hedge fund Marshall Wace lost more than 5 billion Euros. NY based funds Perry Capital and Greenlight Capital also lost a considerable amount.

For those who know German there is an interesting comment in German:
Porsche is German's biggest hedge fund now. Only a quarter of Porsche's revenue will be based on their car sales whereas the rest is based on using financial instruments.

by orl, Oct 29, 2008, 12:40 PM

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