So Porsche announces they own 75% (instead of 30ish% of Volkswagen and the stock price surges over €1005 per share as hedge fund operators vivisect themselves to get a piece of the action or, if they shorted VW, to rid themselves of their folly. It settled down later, but there’s a frenzied, sick humour to be had in the article.
Check out:
A manager at a large hedge fund said: “The losses will be extreme. I don’t think it is going to bring down a big fund, but it will probably bring down some small ones.”
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There was widespread expectation in the markets that the huge rise would push some fragile hedge funds – who bet on VW’s shares falling – to collapse with losses estimated at €20bn-€30bn.