Lest anyone doubt our stock selection approach is quantitatively driven, the following represents the positions of our Long/Short accounts:
QID $21.16 3%
BJ $39.14 5%
OSTK $22.64 5%
NAV $52.80 5%
ICE $122.08 5%
PCS $8.80 4%
We are 24% long, with a 6% short position in the QIDs. Hence, our net exposure is 18%.
Now, if ever you wanted evidence of the importance of being objective, you might note that the 3rd position above is none other than Overstock.com.
It is a testament to our lack of bias in stock selection in that we are long this 3rd tier retailer. Sure, the CEO is a loon, more interested with spinning conspiracy theories than running the firm. Yes, they have engaged in accounting fraud, probably are tax cheats, and have never truly been profitable.
Despite the fact that I personally think it is a steaming pile of shit, that the CEO is an asshole, and that the entire company is probably corrupt — it is in our portfolio. As a long position.
Go figure.
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UPDATE: May 25, 2010 10:55 pm
Apparently, Byrne just dumped about 140,000 shares, or $3.2 million worth of the stock. I do not recall any prior sales (might this be his first insider sell?)
Is Byrne in possession of material insider information? Would he be so stupid as to sell the shares? (I doubt anyone could be that dumb).
Perhaps he sees a favorable outcome to the SEC investigation? Maybe he is raising money to pay a fine?
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