Whitebox Tactical Commentary on Disappointing 3Q

Charles

One of better fund houses for commentaries...

Here is most recent for WBMAX / WBMIX:

Whitebox Tactical Opportunities Fund 3Q Commentary

Been a tough quarter though. Actually, a tough couple quarters...

To put it bluntly, over the last five months, but especially in June and July, the stocks we hated most (and were short) were among the stocks the market loved the most.

00BY

past 3 months: -4.36
YTD: -3.46

scott

"He's much less kind to Amazon (AMZN -1.2%), asserting the company's latest numbers are especially disappointing since they suggest the growth used to justify a dearth of profits is slowing, and in doing so is yielding higher losses.Einhorn: "One of the principal bullish assumptions supporting many bubble stocks is, 'the company is growing too fast to be very profitable.' We think AMZN is just one of the many stocks for which this narrative will ultimately prove false."Einhorn doesn't explicitly state he's short Amazon, though he does say Greenlight increased its exposure to "bubble basket" shorts in Q3."

http://seekingalpha.com/news/2096315-einhorn-talks-up-emc-calls-amazon-a-bubble-stock

Greenlight similar to Whitebox in its attempts to short momentum/flashy names, although the latter calls it their "Never Never" names and the latter is likely more substantially short.

http://www.bloomberg.com/news/2014-06-10/whitebox-shorting-never-never-stocks-in-graham-reversal.html