03-07-2012, 03:58 PM
Came across this last night, nothing new here other than Goldman screwing up but a good account of what happened:
Soros - new CIO comes in and his first task is to significantly cut exposure to anything he is not 1000% up to speed on. IOC was a huge position at Soros and they had a 100%+ profit in it. CIO decided to sell 2.8 million shares. 2 million of the shares were taken by Goldman Sachs at a $3 discount. Stock was trading at $74 at the time with huge upward momentum. Goldman thought they could dribble out the stock into the market and/or find a buyer for a block. Stupidly, one of the Goldman traders accidentally advertised that Goldman had 2 million shares to sell. Goldman risk management stepped in and forced liquidation of the position over several days. Let's be super clear about this.....Soros does not have any information edge. It was a decision by the new CIO to not inherit a $350 million position in a small cap company that he knows nothing about. The next day, the energy PM at Soros was let go. The remainder of the Soros position was sold after the filing.
Chandler - Chandler is well known in Australia for taking large positions in companies where he feels he has a tremendous advantage and the risk/reward is heavily skewed in his favor. Chandler owns 17% of Energy World and is extremely close to the InterOil story. He built his IOC position immediately ahead of the T2 results, NRC approval and the sell down. He is well connected and has good information. Chatter is Chandler is confident that T2 will be extremely successful and strongly believes NEC approval is coming soon.
So....we had a decision by a new CIO to not hold a stock that he knows nothing about and has a 100%+ profit in.... and we have a wickedly smart self-made multi-billionaire that is extremely tied into all of the players in and around InterOil stepping up and buying 2.5 million shares.
Soros - new CIO comes in and his first task is to significantly cut exposure to anything he is not 1000% up to speed on. IOC was a huge position at Soros and they had a 100%+ profit in it. CIO decided to sell 2.8 million shares. 2 million of the shares were taken by Goldman Sachs at a $3 discount. Stock was trading at $74 at the time with huge upward momentum. Goldman thought they could dribble out the stock into the market and/or find a buyer for a block. Stupidly, one of the Goldman traders accidentally advertised that Goldman had 2 million shares to sell. Goldman risk management stepped in and forced liquidation of the position over several days. Let's be super clear about this.....Soros does not have any information edge. It was a decision by the new CIO to not inherit a $350 million position in a small cap company that he knows nothing about. The next day, the energy PM at Soros was let go. The remainder of the Soros position was sold after the filing.
Chandler - Chandler is well known in Australia for taking large positions in companies where he feels he has a tremendous advantage and the risk/reward is heavily skewed in his favor. Chandler owns 17% of Energy World and is extremely close to the InterOil story. He built his IOC position immediately ahead of the T2 results, NRC approval and the sell down. He is well connected and has good information. Chatter is Chandler is confident that T2 will be extremely successful and strongly believes NEC approval is coming soon.
So....we had a decision by a new CIO to not hold a stock that he knows nothing about and has a 100%+ profit in.... and we have a wickedly smart self-made multi-billionaire that is extremely tied into all of the players in and around InterOil stepping up and buying 2.5 million shares.