Sunday, 4 October 2015
Last updated 1 day ago
Sep 3 2013 | 12:09pm ET
Despite rumblings as far back as February, some prominent hedge funds clearly did not see Microsoft's all-cash $7.2 billion deal for most of Nokia coming.
What had been a very profitable bet against the cellphone maker—whose shares had lost 93% over the past 13 years—soured quickly after the merger was announced yesterday. Some 12% of Nokia shares were on loan to short-sellers, who saw the stock's price soar nearly 50% after the announcement.
Hedge funds may have lost up to €640 million, according to Reuters. Among Nokia's biggest short-sellers were Discovery Capital Management, Viking Global Investors, Maverick Capital Management, Blue Ridge Capital and Lone Pine Capital.
"It's going to be a long/short body-bag job," Hobart Capital's Justin Haque told Reuters.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…