Post by
Maxmoe on Dec 11, 2020 3:43pm
Fun with Shorts!
I heard this from a friend who works for a fund manager. So you own a big block of shares in your fund. Your shares are physically held at a custodian like state street or RBC. The custodian has a "borrowing" agreement with you for all of your securities. The borrowing fees are used to offset your custodian fees so that in a good year, your custodian fees are almost zero. BUT, here's the fun part. You can view which shares are out on loan every day and what your fee is. You can also email or call the custodian and tell them to remove TVE shares from the eligible securities list. Whenever you want. For shiggles if you want. So this week would be a really fun time to do that. The custodian would then call his hedge fund shorty client and tell him to cover or pay much higher borrow fees. Aaah, just watch shorty scramble. Such fun at shorty's expense. Or so the story goes.
Comment by
kingshane on Dec 11, 2020 4:14pm
Thanks for the info. I'm putting my 255K share up for sale for $5 if that helps in anyway.