To Odey asset management14 Jun 2020 17:51
Hi.
I'm a private investor and would like to ask you a question please. You say that you do rigorous research to identify your investments.
Ok. Yet you are shorting a company that just had it's most successful quarter, IG index. I understand that you may feel like with C19 crisis abating, markets will calm down. To a degree this maybe true. However, how about all the bankruptcies that will follow later in this year and next year? How about the oil price and bond price volatility? Don't you think your approach is just a tad complacent? It appears you are taking the view that this market sell of is temporary and that all will be well?
If this is not your view, then please explain why are you shorting the company that benefits the most from any volatility? Furthermore, a cash rich company that is. I feel like you really think this market will suddenly be calm for the next 2 years? You really seriously think IGs earnings will drop off?
I seriously think you have made a mistake and should apologize for your investors. I believe your short has lost you £15-20 million already and you should be issuing a public apology for your investors. Last 3 months alone, your increase in short position has cost you a further £3.5 million. I do not think they would be impressed if they knew how your "rigorous" research will lead you to short a company best positioned for the current year, and probably for the next year as well. I am planning to distribute this information further to the markets.
Sincerely, Veijo Sinerva
Private investor
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