"Black Mesa" checks in

rffrydr · Posted: Thu Aug 09, 2007 2:57 pm Post subject: "Black Mesa" checks in

...I, mean out. Market nuetral fund:

http://www.marketwatch.com/news/story/liquidation-big-portfolio-triggers-turmoil/story.aspx?guid=%7B9562090F%2D2CC0%2D4EE2%2DACBF%2D2688F60061DA%7D
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Today is the Tomorrow you worried about Yesterday!

HenryTo · Posted: Thu Aug 09, 2007 3:31 pm Post subject:

There. This could be one reason why a couple of homebuilders (e.g. BZH), GM, junk bonds, etc. were up today when the rest of the market was down. This goes back to my previous post - that being: Given the huge proliferation of market neutral funds and 130/30 strategies, we could have a scenario (when liquidity is severely constrained) where all the "good stocks" in the market decline tremendously while stocks with high short interest spike up - thus wrecking havoc on all these so-called "alpha-focused" market neutral strategies.