July 2, 2020

PG&E Exits BK…


PG&E Corporation (PCG – USA) is an industry leader in arson and manslaughter. They also do something with electricity. PCG filed for bankruptcy in January of 2019 after they were unable to pay billions in claims. To call the bankruptcy process a klusterfuk, is generous to all involved. However, that’s all in the rearview mirror. A bunch of distressed funds teamed up to rig ... Read More
Categories: Investments
Positions Mentioned: PCG
June 29, 2020

Event-Driven Winning…


On Monday morning, I posted an article about the extreme mispricing of Nikola Motor’s warrants (NKLAW – USA). While there were ways to arb this trade in an almost risk-free manner, I went into them naked as the spread was so damn wide. Since that time, the warrants have risen by roughly 50% (hitting a high of $41 vs roughly $28 when I posted). ... Read More
Categories: Investments
Positions Mentioned: NKLAW
June 24, 2020

Ready For The Re-Bal???


I frequently hear investors say that “there’s no such thing as free money in the markets.” I’d argue that those people are simply lazy. Once a year, the Russell Indexes re-balance. It’s rules-based and as the indexes and closet indexers get larger, the percentage of a company’s float involved gets larger. In many cases, 20% to 40% of a company’s total float changes hands ... Read More
Positions Mentioned: TNK
June 22, 2020

NKLAW’s ED “Issues”…


Ever since I mentioned my event-driven book last week, I’ve had a bunch of questions on it from readers. I’ve been hesitant to speak much about this ED book as the opportunities tend to be short-term in duration and the overall win-rate often isn’t that good. It’s more about risking something tiny to see what happens, applied across a large number of situations. However, ... Read More
Categories: Investments
Positions Mentioned: NKLAW
June 19, 2020

Stocks Only Go Up…


I have always run my book with two distinct buckets. One bucket is focused on “global micro trends,” which means that I find thematic inflections in global markets and position myself in small and mid-cap names that are likely to benefit. This is the fun stuff that I like to write about. My other bucket, which I rarely write about, is focused on event-driven, tactical ... Read More
Positions Mentioned:
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