Author Topic: Scion Asset Management  (Read 33130 times)

CorpRaider

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Re: Scion Asset Management
« Reply #60 on: December 11, 2016, 01:08:55 PM »
Could have also been running the arb spread, right? Given the delay in the reporting.  Pretty sure this was recently discussed in another thread.  Definitely can't just use the simple trailing anything; they just bought like 60%+ of the go forward company.


meiroy

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Re: Scion Asset Management
« Reply #61 on: February 20, 2019, 10:48:59 PM »


fareastwarriors

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Re: Scion Asset Management
« Reply #63 on: September 05, 2019, 09:56:28 PM »

Paarslaars

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Re: Scion Asset Management
« Reply #64 on: September 06, 2019, 07:52:39 AM »
https://www.bloomberg.com/news/articles/2019-08-28/the-big-short-s-michael-burry-sees-a-bubble-in-passive-investing

Don't really understand why he believes ETF's are a bubble.
It's simply a shift from actively managed funds... no reason to expect all the money to suddenly pour out without new money pouring in.

Unless there is a panic but then I don't see why this would be any different than a general stock market crash.

RuleNumberOne

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Re: Scion Asset Management
« Reply #65 on: September 06, 2019, 08:40:28 AM »
If you look at S&P 500 stocks with a small average daily volume traded, you will see they have very high betas.

This is true of all recent IPOs (IPOs within the last 5 years). They deliberately float a small number of shares and watch the price shoot up on low volume.

These low-float stocks haven't been tested in a bear market when employees throw in the towel and sell.

Right now, most employees of companies that have gone IPO are still holding onto their pre-IPO shares. If they capitulate during a bear market, there will be a huge amount of stock put onto the market compared to average daily volume.


https://www.bloomberg.com/news/articles/2019-08-28/the-big-short-s-michael-burry-sees-a-bubble-in-passive-investing

Don't really understand why he believes ETF's are a bubble.
It's simply a shift from actively managed funds... no reason to expect all the money to suddenly pour out without new money pouring in.

Unless there is a panic but then I don't see why this would be any different than a general stock market crash.

RuleNumberOne

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Re: Scion Asset Management
« Reply #66 on: September 06, 2019, 08:44:57 AM »
My guess: S&P 500 has this problem to a very small degree. Russell1000 and NASDAQ should be having the problem though. Every IPO makes it into Russell 1000.

News articles focus on the S&P 500, but there is a lot of bubbly in the Russell 1000 that has not been allowed into the S&P 500.

Needless to say, DJIA would not have the low-float problem at all. Probably nobody buys the DJIA index funds.

If you look at S&P 500 stocks with a small average daily volume traded, you will see they have very high betas.

This is true of all recent IPOs (IPOs within the last 5 years). They deliberately float a small number of shares and watch the price shoot up on low volume.

These low-float stocks haven't been tested in a bear market when employees throw in the towel and sell.

Right now, most employees of companies that have gone IPO are still holding onto their pre-IPO shares. If they capitulate during a bear market, there will be a huge amount of stock put onto the market compared to average daily volume.


https://www.bloomberg.com/news/articles/2019-08-28/the-big-short-s-michael-burry-sees-a-bubble-in-passive-investing

Don't really understand why he believes ETF's are a bubble.
It's simply a shift from actively managed funds... no reason to expect all the money to suddenly pour out without new money pouring in.

Unless there is a panic but then I don't see why this would be any different than a general stock market crash.