SHLL We Unwind This One…??? – ValueWalk Premium
TCI David Marcus Investment Research

SHLL We Unwind This One…???

Yeah, yeah. I know. The ticker has changed and it’s no longer SHLL as the merger got approved. Then again, I’m a fan of word-plays and nothing works with Hyliion. Hell, I don’t even know the right way to pronounce Hyliion. Fortunately, it doesn’t matter as I’ve unwound the position.

Q3 2020 hedge fund letters, conferences and more

David Marcus

13 trading days ago, the spread between the shares and the warrants was $14 wide and it offered an almost risk-free arbitrage trade. Overselling the calls only increased the return. Today, the spread has shrunk to $5 wide. Normally, I’d see it through as $5 is still plenty of juice, but we’re not in a normal world. Instead, I’m on a mission to de-gross into the election. As a result, I’m declaring victory and moving on.

Economists say there’s no such thing as a dollar bill lying in the street. I’d argue that most economists are simply too stupid to pick up the dollar bill. In the case of SHLL/HYLN, it was effectively a risk-free dollar as well.

As these Event-Driven situations seem to do so well lately, I’m now spending a lot more time actively looking for them and I intend to keep flagging some of the more liquid ones. You all owe me a beer…

Disclosure: Funds that I control are short various HYLN puts

Article by Adventures In Capitalism

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