Porsche outsmarts hedgefunds.

[Trigonx]

It seems Porsche outsmarted the hedgefunds by hedgefunding themselves.

Quick summary for those who don't want to read the articles
-Porsche currently owns 42.6% of VW and has set options to purchase 31.5% of VW in the next year. Hedgefunds had shorted VW because they believed that VW was overpriced with the financial crisis upon us. The news of Porsche basically owning 74.1% of porsche within the span of a year came out on October 26th(Sunday) and by Tuesday 28 VW share price climbs to close at €919.5, briefly above €1000 making it the world's biggest company, ahead of Exxon Mobil. On the 29th it dropped down to €500.

this article is a timeline.

http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5036784.ece





"How bosses at Porsche outmanoeuvred Volkswagen" -I liked this article, its pretty informative.
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5042569.ece

 

[ghengis86]

so anybody holding a short position had to cover...all the way up to 1200. nice. and they say short sellers are a bad thing!