Short borrow fee rate nearing 80%!!!!!!!!!
This AMC fiasco has got me thinking. With a short borrow fee rate of that magnitude why would I "a hypothetical hedge funds investor" want to keep my money in a hedge fund that would be paying 80% on an annual basis in fees alone. That fees would significantly reduce my return in the hedge fund. Then I remembered hedge funds have lockout periods, they're typically no longer than 90 days. Could it be that people invested in these hedge funds want to withdraw their money but can't due to lockout? This is merely a theory, I do not have hard evidence to back it up, just thought I'd share my thoughts. Stay tuned!
Stay strong fellow apes!
Source: amc.crazyawesomecompany.com/
This AMC fiasco has got me thinking. With a short borrow fee rate of that magnitude why would I "a hypothetical hedge funds investor" want to keep my money in a hedge fund that would be paying 80% on an annual basis in fees alone. That fees would significantly reduce my return in the hedge fund. Then I remembered hedge funds have lockout periods, they're typically no longer than 90 days. Could it be that people invested in these hedge funds want to withdraw their money but can't due to lockout? This is merely a theory, I do not have hard evidence to back it up, just thought I'd share my thoughts. Stay tuned!
Stay strong fellow apes!
Source: amc.crazyawesomecompany.com/
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