Lee Ainslie, co-founder of Maverick, has been playing a supporting role in the firm’s investments in recent years, handing over the reigns to Andrew Warford and Riad Abrahams. Those fuckers just got smoked out short ARMH in size, according to sources at Reuters.
The set-back for such hedge funds, who position themselves to profit from swings in stock prices, comes at a difficult time for the industry as many peers have seen their performance slide and some investors have even demanded their money back.
Data from Britain’s regulator, the Financial Conduct Authority, shows that Maverick Capital had a substantial outstanding short position in ARM of roughly 1.2 percent of its shares when the SoftBank bid was announced on Monday.
The data shows that Maverick had a short position of 0.67 percent as of Jan. 6 and increased that to 1.2 percent on May 3.
Maverick did great last year, booking a 16% return. As far as I can see, they seem to be doing okay this year too, aside from ARMH and their long positions in VRX, AGN and ST. No worries, unlike Pershing Square, they spread their bets out.
If you enjoy the content at iBankCoin, please follow us on Twitter
