Agreed, but I don’t think there’s a big market inefficiency here with risk-adjusted above market rate returns. Of course, if you do research to create private information then there should be a return to that research.
Trading based on private information is sometimes illegal, but sometimes not, depending on what the information is and why you have it, and which jurisdiction you’re in. [...[
Agreed, but I don’t think there’s a big market inefficiency here with risk-adjusted above market rate returns. Of course, if you do research to create private information then there should be a return to that research.
True, but I’ve heard that in the US, normally, if I lobby in the U.S. for an outcome and I short the stock about which I am lobbying, I have not violated any law unless I am a fiduciary or agent of the company in question. Also see https://www.forbes.com/sites/realspin/2014/04/24/its-perfectly-fine-for-herbalife-short-sellers-to-lobby-the-government/#95b274610256
I really like this, but...
This seems to be why people have a knee jerk reaction against it.