Look how wall street cheat sheet intentionally left out Fairfax Financial (Prem Watsa)
Read their Guru's interview:
Thanks for being here.....some new economic data out today but I want to talk about something else first...again today we have the misdirection from the futures...the futures up market and as of right now its actually down again. Is this just because its the holiday period that we are seeing this…?
You know...a lot of times when I was short at my hedge fund and I was positioned short meaning I needed it down...I would create a level of activity BEFOREHAND that could drive the futures… it doesn’t take much money. Similarly…or if I were long and I would want to make things a little bit rosy I WOULD GO IN AND TAKE A BUNCH OF STOCKS and make sure that they are higher maybe commit FIVE million in capital to do it and I could affect it. What you are seeing now is maybe it probably is a bigger market now maybe you need TEN million capital to KNOCK THE STUFF DOWN. But its a fun game and its a lucrative game. YOU CAN MOVE IT UP AND THEN FADE IT. That often creates a very negative feel. So let’s say you take a longer term view intraday and you say listen Im gonna boost the futures and then when the real sellers come in when the real market comes in they are gonna knock it down and ITS GONNA CREATE A NEGATIVE VIEW. Thats a strategy very worth doing when you are evaluating on a day to day basis. I would ENCOURAGE anyone who is in a hedge fund to do it because its legal.
JC: It’s a very quick way to make money and very satisfying.
JC: By the way no one else in the world would ever admit that but I dont care.
Interviewer: Thats right and you can say that here…..