Former hedge fund manager Whitney Tilson believes Bitcoin
In an email to friends and followers, Tilson wrote that he
is "calling a top right now," comparing the cryptocurrency
craze to previous asset bubbles.
"The only times such foolishness has happened before in my
18-year career were at the peak of the internet and housing
bubbles," he wrote in the email, which was obtained by
Institutional Investor’s Alpha.
Tilson made the market call just before Bitcoin futures
began trading on the Chicago Mercantile Exchange Monday.
The former hedge fund manager noted that he had been "asked
about Bitcoin by a parade of the least-knowledgeable investors
imaginable." Another exchange, the Cboe Futures Exchange, had
begun trading Bitcoin futures last week.
"Blockchain technology is real in the same way that the
internet was real back in 1999 and housing prices tend to go up
in the mid-2000s," Tilson wrote. "In other words, a good idea
taken to absurd extremes is NOT a good idea!"
Tilson announced in September that he is shutting
down his hedge fund firm, Kase Capital Management, citing bad
performance. In the new email, he admitted that "the greed and
speculative nature of humans is inherently unpredictable, so
for all I know Bitcoin could go to $1 million."
Bitcoin was trading above $18,000 on Monday after climbing
past $19,000 Sunday.
"I do know the ultimate outcome," Tilson added. "Smoldering
rubble, a lot of finger-pointing (where were the regulators?!),
and a lot of tears and empty bank accounts, especially among
those who can least afford it."
Hedge funds are pulling out of gold in favor of stocks
cryptocurrencies, according to Bloomberg. The financial news site
reported that hedge funds cut their net-long positions in gold
by 43 percent on the futures exchanges in the week ending Dec.
12, according to data from the U.S. Commodity Futures Trading
Fir Tree Partners is siding with activist investor Carl
Icahn in opposing SandRidge Energy’s planned
acquisition of Bonanza Creek Energy, according to a filing with the Securities and Exchange
Fir Tree, which owns approximately 8.2 percent of SandRidge,
said it disproved of the plan to issue a "considerable amount
of undervalued company common stock" in order to purchase
The private investment firm added it had independently
reached the same conclusion as Icahn. Icahn Capital is
currently waging a proxy battle to convince shareholders that
the acquisition plan is "dilutive, non-strategic, and
significantly overvalues Bonanza."
Activist hedge fund manager Christopher Hohn
won’t attend the London Stock Exchange
shareholders’ meeting where investors will vote on
his motion to remove LSE chairman Donald Brydon, Reuters reported.
Hohn, who is founder of TCI Fund Management, had called for
Brydon to be fired following the announcement that former LSE
chief executive Xavier Rolet was stepping down.
Reuters reported that several big shareholders, including
the Qatar Investment Authority and BlackRock, have come out
against the firing of Brydon, and Hohn doesn’t
expect his resolution to pass.
TCI did not return a request for comment.