dChan
Anonymous ID: a8a269 Jan. 27, 2022, 7:18 a.m. No.15474335   🗄️.is đź”—kun   >>4352 >>4370 >>4489 >>4674 >>4696

>>15474272

>Perhaps HillDawg and Obama coukd get it on Net-Flix

 

Ackman Buys 3.1 Million Netflix Shares With $1.25 Billion Profit From Massive Treasury Short

by Tyler Durden

Thursday, Jan 27, 2022 - 06:15 AM

 

The billionaire investor behind Pershing Square announced on twitter that "beginning on Friday and over the last several days, we acquired more than 3.1 million shares of Netflix… which makes us a top-20 holder." Ackman, who also linked to a letter to investors laying out his thinking and math behind the purchase, said that "I have long admired Reed Hastings and the remarkable company he and his team have built. We are delighted that the market has presented us with this opportunity."

 

Pershing Square’s stake equals about 0.68% of the streaming giant, based on 455.8 million diluted shares outstanding at Dec. 31.

 

News of the purchase sent shares of Netflix 4% higher in after-hours trading following news of Pershing’s investment. But it has a long way to go to catch up to where it was just 4 weeks ago: the stock has plunged more than 40% in 2022 alone, and closed Wednesday at $359.70, compared with a high of $691.69 on Nov. 17.

 

[..]

 

But perhaps more remarkable is how Ackman funded his new position in NFLX.

 

[..]

 

As Ackman writes in his Netflix letter, "in order to fund our purchase of Netflix, beginning on Friday and over the last few days, we unwound the substantial majority of our interest rate hedge generating proceeds of $1.25 billion. We retained interest rate swaptions that are currently out-of-the-money, and also purchased some additional longer-dated, out-of-the-money swaptions. The result of all of the above is that the notional size of our interest rate hedge has been reduced by 80%, the term of a substantial portion of the hedge we retain has been extended, and our dollar investment in hedges has been reduced by more than 90%."

 

for moar see sauce:

https://www.zerohedge.com/markets/ackman-buys-31-million-netflix-shares-125-billion-profit-massive-treasury-short