Shorter gets burned - Good

A New York hedge fund manager is sitting on an estimated loss of close to £40m after taking an aggressive short position on Ocado, the online grocery company. Elinor Carter Simonds, a managing director of Blue Ridge Capital, made a bet last year that shares in Ocado would fall. The Yale graduate borrowed between 20m and 30m shares when the price was about 130p. She immediately sold the stake in the hope that it would fall in value, which would have netted a big profit for Blue Ridge, the Sunday Times reports.

Just so you know, your pension fund has loaned this women millions of the shares they hold on your behalf (And from which they pay your pension) just so she could sell them in the market (Thereby forcing Ocado into near bancrupcy) and then buy them back at a lower price.

But she got burned the good folk at Ocado seem to be doing well at selling food on line in Britain and the share price didn't fall so this stupid women (or her firm) will have to buy back the shares at a higher price and she'll loose £40million - Good, shorting should be outlawed.

Re: Shorter gets burned - Good

I agree Losos, anything which is engineered to distort the market unfairly should be outlawed, and yes, nice result!

Re: Shorter gets burned - Good

It is distorting the market, and it is putting the target company under pressure, and although I accept that your pension fund gets paid for the loan, if the target firm goes bust that must mean a loss to the pension fund and less money to pay out to pensioners, as the advert says 'Simples'