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112 Hedge Funds Scream In Pain As GM Drops To Fresh Post-IPO Low

Tyler Durden's picture




 

Nobody could have expected this. Certainly not the 112 hedge funds which hold GM stock on expectations the government, the Fed and GETCO would never let "that company" plunge this far. Next up: a congressional hearing for GETCO regarding charges of ponzi maintenance dereliction. As for the much touted "breakeven" on GM by the US government, the WSJ summarizes it best: "To break even, the U.S. Treasury would need to sell its remaining
stake—about 500 million shares—at $53 apiece. GM closed off 27 cents a
share at $29.97 in 4 p.m. trading Monday on the New York Stock Exchange,
hitting a new low since its $33-a-share November initial public
offering." Good luck with that: not even State Street can institute a short squeeze of such epic proportions.

And the losers, coming in at #10 in the list of most popular hedge fund stock, held by 112 different hedge funds.

 

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Tue, 04/19/2011 - 10:00 | 1183600 FOC 1183
FOC 1183's picture

"House of Pain"

Tue, 04/19/2011 - 10:36 | 1183800 SheepDog-One
SheepDog-One's picture

AW poor hedge funds.

Tue, 04/19/2011 - 10:58 | 1183939 tallen
tallen's picture

Remember, it's not general motors. It's GOVERNMENT Motors

Tue, 04/19/2011 - 11:37 | 1184126 Ahmeexnal
Ahmeexnal's picture

Twentieth Century Motor Company.

Tue, 04/19/2011 - 16:17 | 1185510 MrBoompi
MrBoompi's picture

Oh man, I'm only gonna make $4 Billion this year....

Tue, 04/19/2011 - 10:40 | 1183832 jus_lite_reading
jus_lite_reading's picture

Problem solved..... cut a few more trading desks but keep the record bonuses for the top brass

Tue, 04/19/2011 - 10:00 | 1183604 spiral_eyes
spiral_eyes's picture

lol welcome to the world of too big to bail.

Tue, 04/19/2011 - 10:02 | 1183608 Rainman
Rainman's picture

But I thought channel stuffing was working just fine....everybody just needs to BTFVolt.

Tue, 04/19/2011 - 10:08 | 1183643 Cash_is_Trash
Cash_is_Trash's picture

Let us remember that the bank bailouts began with the automaker bailouts.

Shit cars channel stuffed funded by a comatose taxpayer.

'Like a rock, ohhh like a rock' - Like a rock you're sinking into the Mariana Trench

Tue, 04/19/2011 - 10:30 | 1183768 SheepDog-One
SheepDog-One's picture

Problem is, the Volt burns your house down. Oh well GM, maybe next year.

Tue, 04/19/2011 - 10:55 | 1183921 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Wouldn't tens of thousands of houses burning down be good for the economy?  I heard it was good for Japan's.  What????

Tue, 04/19/2011 - 11:06 | 1183978 Rogerwilco
Rogerwilco's picture

+(240V) creative destruction!

Tue, 04/19/2011 - 11:32 | 1184116 Cleve Meater
Cleve Meater's picture

... And Chevy Cruze steering wheels fall off:  www.cruzeless.com

Tue, 04/19/2011 - 13:35 | 1184782 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

Actually they might be catching on fire. Might not be the Volt's fault though as this numbnuts converted his Suzuki Samari to electric power also. Hope his insurance takes a long hard look at this one:

http://www.autoevolution.com/news/chevrolet-volt-bursts-in-flames-twice-...

http://www.freep.com/article/20110416/NEWS06/104160330/Electric-cars-des...

Sorta neat that the Volt caught on fire twice. Must have been someone at Toyota...

Tue, 04/19/2011 - 10:02 | 1183613 EZYJET PILOT
EZYJET PILOT's picture

deja vu, April 2010. The f@ckers are letting the casino lose a bit of money before the announcement of QE3, or QE3 in disguise, in September. So predictable, morons.

Tue, 04/19/2011 - 10:02 | 1183616 ZackAttack
ZackAttack's picture

Always pleased to see one of the 2-and-20 crowd taking it up the chute.

Tue, 04/19/2011 - 10:03 | 1183633 Sudden Debt
Sudden Debt's picture

When OPEL GM failed here in Belgium, we hired one of the executives to join the staff.

When he got fired from OPEL, he got a handshake of 200K and invested it right back in the GM IPO... He even took a broker to do it for him...

I've been discussing that "investment" with him as the stupidest move ever but as a coporate GM lover, he just won't listen.

He's been pretty quiet these last few weeks :)

And I constantly remind him that it will go to 18$ by the end of this year :)

He must really love me for it :)

 

Tue, 04/19/2011 - 10:29 | 1183764 Samsonov
Samsonov's picture

You're a jerk.

Tue, 04/19/2011 - 11:51 | 1184192 hedgeless_horseman
hedgeless_horseman's picture

GM will once again find ultimate support at zero, probably sooner than we imagine.

Stocks are not race horses.  You can switch out if you are behind.

Tue, 04/19/2011 - 10:48 | 1183871 lynnybee
lynnybee's picture

l.o.l., sudden debt, on your comment .....

Tue, 04/19/2011 - 11:10 | 1184014 ExpendableOne
ExpendableOne's picture

Not nice to taunt the dingbats like that.

Tue, 04/19/2011 - 10:07 | 1183635 Id fight Gandhi
Id fight Gandhi's picture

Why again did the us government need to buy gm? They made shit cars for decades and then loaned out money to shitty borrowers. Fuck them in the ear

Tue, 04/19/2011 - 12:17 | 1184309 Buckaroo Banzai
Buckaroo Banzai's picture

Duh. To bail out the unions, and the management.

Tue, 04/19/2011 - 14:33 | 1185014 3.7.77
3.7.77's picture

Actually the gov would have bailed out Gimmee Motors wether or not the union was involved.  You know, the country goes as GM goes. Die Gm Die.

Tue, 04/19/2011 - 10:05 | 1183636 I am Jobe
I am Jobe's picture

Bring back Rick Wagner. He was a saviour. Where is that Fuckhead ? Taxpayers will never recoup the TARP funds. Its over. Stick a fork.

Tue, 04/19/2011 - 10:05 | 1183638 treemagnet
treemagnet's picture

socialized loss and privatized....er, loss?  Thats wrong, fuck - how did it go again?

Tue, 04/19/2011 - 14:34 | 1185025 topcallingtroll
topcallingtroll's picture

Lol.....the government even fucks up at the moral hazard game.

Tue, 04/19/2011 - 10:05 | 1183642 DonnieD
DonnieD's picture

Cue Rattner on Criminal News and Business Channel to tell us what a great idea it was for taxpayers to sell their children a little deeper into debt slavery to bailout GM's unions.

Tue, 04/19/2011 - 10:06 | 1183644 Sudden Debt
Sudden Debt's picture

"To break even, the U.S. Treasury would need to sell its remaining stake—about 500 million shares—at $53 apiece

Maybe if they delute their stock with 1 billion shares every quarter, they can get their money back?

I worked with Citibank :)

 

Tue, 04/19/2011 - 10:06 | 1183645 NidStyles
NidStyles's picture

Watch Chrysler follow, and then the Government will step in to break up Ford under an anti-Monopoly case.

Tue, 04/19/2011 - 10:10 | 1183654 bob_dabolina
bob_dabolina's picture

GM is a disgusting company.

So is the US government for that matter.

Tue, 04/19/2011 - 10:09 | 1183659 Long-John-Silver
Long-John-Silver's picture

First they forced us to buy Health Care Insurance.

Will they now force us to buy a Chevy Volt?

Tue, 04/19/2011 - 10:16 | 1183699 bob_dabolina
bob_dabolina's picture

I wouldn't buy a GM product with my worsed enemies credit.

Tue, 04/19/2011 - 11:16 | 1184031 ExpendableOne
ExpendableOne's picture

I inherited a Buick from my Father.  Drove it for 5 years (hey it was paid for).  Last month, it caught fire in the Costco parking lot and burned up the engine compartment.  My new ride is a Honda Ridgeline.  Never set foot in a GM, Chrysler or Ford showroom.  

Tue, 04/19/2011 - 16:18 | 1185521 MrBoompi
MrBoompi's picture

I have a Ridgeline and a BMW, but I also own a '65 Chevy Caprice with a 396. Frankly I like all three vehicles very much.

Tue, 04/19/2011 - 10:19 | 1183706 Urban Redneck
Urban Redneck's picture

Fuck the Volt and sink GM, get VW to start producing the XL1.

Tue, 04/19/2011 - 10:25 | 1183723 Sudden Debt
Sudden Debt's picture

I bet your post is being printed and put in "the idea box"

....somewhere

... somewhere in the Washington area...

 

Tue, 04/19/2011 - 10:09 | 1183663 SDRII
SDRII's picture

Need to buy subprime lender ASAP

Tue, 04/19/2011 - 10:12 | 1183664 pauldia
pauldia's picture
Government Gov’t Looking to Sell its GM Stock — A Potential Loss of Over $11 Billion

Posted on April 19, 2011 at 9:44am by Jonathon M. Seid

http://www.theblaze.com/stories/govt-looking-to-sell-its-gm-stock-a-pote...

and this................

http://online.wsj.com/article/SB1000142405274870391600457627138241888709...

 

 

Tue, 04/19/2011 - 10:10 | 1183666 Seasmoke
Seasmoke's picture

i want to see GM go to zero, even more than BAC

Tue, 04/19/2011 - 11:05 | 1183982 Jay Gould Esq.
Jay Gould Esq.'s picture

+1

Tue, 04/19/2011 - 20:03 | 1186276 prole
prole's picture

How many times can the Trabant Motor Company go bankrupt?

Tue, 04/19/2011 - 10:14 | 1183677 orca
orca's picture

"Good luck with that: not even State Street can institute a short squeeze of such epic proportions."

Yes they can, they did it pre-crash with entities like FNM and also GM.
And yes they will. This bitch is worth playing contrary with calls once it breaks hard to the downside. Long only. They have the $$$$, they want it up, so let them buy it up for you.
And yes, afterwards they'll enter chapter 22, playbook is still fresh from the last time.
GM, the perma IPO of the 21st century.

Tue, 04/19/2011 - 12:45 | 1184495 fajensen
fajensen's picture

+1

Tue, 04/19/2011 - 10:12 | 1183678 Tracerfan
Tracerfan's picture

Fair value is $0.00/share

Tue, 04/19/2011 - 10:18 | 1183700 treemagnet
treemagnet's picture

I just checked with Phil "Mr. Detroit" LeBoe, he said thats just wrong and mean spirited.  He asked "have you seen a Volt?"

Tue, 04/19/2011 - 10:57 | 1183929 SheepDog-One
SheepDog-One's picture

I've seen a Volt, burn down a house.

Tue, 04/19/2011 - 15:58 | 1185433 squexx
squexx's picture

Maybe they should change the name of "Volt" to "Old Sparky!" (Think electric chair.....)

Tue, 04/19/2011 - 10:15 | 1183684 Sancho Ponzi
Sancho Ponzi's picture

That's OK, Obama has a twofold solution:

1) Make government bigger and buy more GM fleet vehicles

2) Order LaHood to recall Camrys, Corollas, Fusions, Foci, F150s (done,) Altimas, Sonatas, Elantras, Civics and Accords.

Tue, 04/19/2011 - 10:13 | 1183686 no2foreclosures
no2foreclosures's picture

This is what you call a classic "pump and dump" scheme.  Look to the Fed to secretly buy this toxic waste and dump the junk to the American taxpayers' great grandchildren.

Tue, 04/19/2011 - 10:18 | 1183712 Tracerfan
Tracerfan's picture

It will be bankrupted, bailed out, and floated again.  Rinse and repeat.

Tue, 04/19/2011 - 10:26 | 1183753 Cpl Hicks
Cpl Hicks's picture

Try 'flush and repeat'.

Tue, 04/19/2011 - 12:09 | 1184251 Logans_Run
Logans_Run's picture

Yup! Remember that one of the beneficiaries of this prepackaged fraud of a BK was the UAW Health Care Trust. There is no way that the Democratic Party is going to allow this Trust to not meet its obligations. A couple years ago the net present value of the estimated total liability to existing members was about $57 billion. The moment this sucker can't cashflow the UAW is going to scream bloody murder that they were jacked by the previous deal.

Tue, 04/19/2011 - 10:16 | 1183687 mccoyspace
mccoyspace's picture

What was it you said two weeks ago? "how do you say 'short GM in Chinese?'

Tue, 04/19/2011 - 10:17 | 1183707 treemagnet
treemagnet's picture

"fuking GM"

Tue, 04/19/2011 - 10:21 | 1183720 Youri Carma
Youri Carma's picture

Were we going we don't need GM cars.

Tue, 04/19/2011 - 10:19 | 1183721 youngman
youngman's picture

I think the Chinese will buy it....at $4.00

Tue, 04/19/2011 - 10:21 | 1183733 Cpl Hicks
Cpl Hicks's picture

ha ha

Tue, 04/19/2011 - 10:32 | 1183788 PulauHantu29
PulauHantu29's picture

Hard not to enjoy the smell of roasting unregulated Hedge Funds in the morning.

Tue, 04/19/2011 - 10:37 | 1183817 tawdzilla
tawdzilla's picture

anyone who owns Gov't Motors stock is an idiot.

Tue, 04/19/2011 - 10:37 | 1183819 aerial view
aerial view's picture

Another brilliant govt bailout sticking it to the taxpayers by trying to save a company more appropriately named Giant Mess (GM) "where quality is job none".

Tue, 04/19/2011 - 10:38 | 1183822 lynnybee
lynnybee's picture

L.O.L.  i laughed so hard when i read that headline.    you know i'd rather walk til my legs fall off with holes in my shoes before i ever hand over my money to the GM corporation ..... ever !

Tue, 04/19/2011 - 14:32 | 1185009 topcallingtroll
topcallingtroll's picture

Fuck government motors.

Tue, 04/19/2011 - 10:43 | 1183850 espirit
espirit's picture

As the pool of revenue grows smaller, the barracudas begin to feed upon each other.

Yee-haw!

Tue, 04/19/2011 - 10:45 | 1183862 Korrath
Korrath's picture

Since we've already paid for it, why not hand out a free car to every tax payer ( I mean the 40% who actually paid, thanks ) when this cluster-fuck goes tits-up again?  

 

Call it...Clunkers for Cash.

Tue, 04/19/2011 - 10:50 | 1183896 LowProfile
LowProfile's picture

+1

Tue, 04/19/2011 - 10:48 | 1183881 GFORCE
GFORCE's picture

This was always a pump n dump.

Tue, 04/19/2011 - 10:49 | 1183888 lynnybee
lynnybee's picture

yea, that's the way i look at it, too .... we should all be getting free cars.    i didn't really want to hand over $57billion of my & my kids & my grandkids money to GM, but, they stole it from me ; least they can do is either give us free cars or the cars that they sell in China for only $5,000 per auto........ i'd love one of those cheap, stripped-down autos for running local errands.

Tue, 04/19/2011 - 10:52 | 1183905 Debtless
Debtless's picture

GM stock trading at all time lows? Go figure. ROFL

Tue, 04/19/2011 - 10:56 | 1183913 Mark Noonan
Mark Noonan's picture

Seriously, why would any hedge fund manager buy GM?  Why, having done that, would any financial firm continue to employ that manager?  And why, given that, would any person out there continue to keep their funds with that financial firm?  You guys here at Zero Hedge are the financial cracker-jacks...I'm just an interloper who likes to read Money McBags' stuff...explain it to me:  are they all idiots?

Tue, 04/19/2011 - 10:58 | 1183940 SheepDog-One
SheepDog-One's picture

Hedge fund managers are IDIOTS believe me I know, I have a couple in my family! MORONS!!!

Tue, 04/19/2011 - 11:12 | 1184010 treemagnet
treemagnet's picture

can I come to your house for Thanksgiving if I promise not to eat - just listen and watch.

Tue, 04/19/2011 - 11:13 | 1184023 SheepDog-One
SheepDog-One's picture

:D

Tue, 04/19/2011 - 11:00 | 1183956 lunaticfringe
lunaticfringe's picture

I like to look, er I mean read, McBags too.

Tue, 04/19/2011 - 11:05 | 1183971 NumberNone
NumberNone's picture

Buy one share of GM, show to Uncle Sam, get smiley face on paper and some sort of backdoor favor down the road....immediately short 2 shares.  Problems solved.

Tue, 04/19/2011 - 11:01 | 1183946 lunaticfringe
lunaticfringe's picture

The Volt's incendiary properties. House fires. For only 45k- http://thecivillibertarian.blogspot.com/2011/04/chevy-volt-at-45k-costs-...

Tue, 04/19/2011 - 13:41 | 1184812 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

Apparently the thing caught fire twice...not sure what caused the fire. The owner at least put in a firewall between the garage and house. I wonder if that's the next GM incentive - free firewall with purchase. It's good that the Volt catches on fire,that's apparently the only way to get heat of the the thing.

http://green.autoblog.com/2011/02/28/chevy-volt-sweater-gloves-commuter-...

Tue, 04/19/2011 - 11:26 | 1184074 Your Mama
Your Mama's picture

Honestly I'm surprised, even I knew this was a turd and told all my friends to short it. did anyone really believe this was going anywhere when there focus is on some bullshit electric turd nobody wants....to have a chance at least build what the people want, don't listen to our dreamer president that has no clue.

Tue, 04/19/2011 - 14:09 | 1184914 topcallingtroll
topcallingtroll's picture

They sure tried to polish this turd before the public offer

It just goes to show the old saying is true.

Tue, 04/19/2011 - 12:14 | 1184273 glenlloyd
glenlloyd's picture

Like no one knew it was going down...haha

Tue, 04/19/2011 - 12:42 | 1184458 cabernet
cabernet's picture

Is GM back on its way to zero once again? Could be, but not for a while. The Federal Gov said they plan to sell more stock this spring/summer. I am sure this is putting pressure on the stock. They will undoubtedly sell at the bottom. Who knows maybe the will panic sell to buy one more day of time before the gov hits the debt ceiling.

http://www.TheAngryGrapes.Com

Tue, 04/19/2011 - 12:43 | 1184466 cabernet
cabernet's picture

Is GM back on its way to zero once again? Could be, but not for a while. The Federal Gov said they plan to sell more stock this spring/summer. I am sure this is putting pressure on the stock. They will undoubtedly sell at the bottom. Who knows maybe the will panic sell to buy one more day of time before the gov hits the debt ceiling.

http://www.TheAngryGrapes.Com

Tue, 04/19/2011 - 13:22 | 1184726 Isotope
Isotope's picture

I'm sure that new govrnment fleet purchases are going to be heavily weighted with GM vehicles, with some Chrysler.

Tue, 04/19/2011 - 13:30 | 1184748 Diogenes
Diogenes's picture

Since when is a drop of 10% in 4 months a major crash? Everybody must be really spoiled by the manipulated markets.

Tue, 04/19/2011 - 14:06 | 1184899 topcallingtroll
topcallingtroll's picture

They treated minority bondholders shabbily by bribing majority bondholders with talf and other goodies.

Unions got to usurp 100 years of bankruptcy law.

I will never buy a car from government motors.

Tue, 04/19/2011 - 14:29 | 1184980 topcallingtroll
topcallingtroll's picture

Dp

(Douche post)

Tue, 04/19/2011 - 14:24 | 1184983 topcallingtroll
topcallingtroll's picture

Talf, tarp hamp, whatever it was.

Anybody that even came within 100 yards of moral hazard and taxpayer subsidy is on my enemies list.

Tue, 04/19/2011 - 14:10 | 1184918 Downtoolong
Downtoolong's picture

I keep telling everyone to call Cramer. He was recommending a buy on GM up to $40 the day after the IPO. That's like $42.50 if you properly account for inflation since then. Surely he would be happy to pick up a few blocks at $30 now.

Tue, 04/19/2011 - 16:23 | 1185542 SumSUN
SumSUN's picture

I wonder what headline we will read next.

Maybe something like "Steering wheel falls off and entire car spontaneously ignites will driving on highway killing 4 lawyers."

Then they will finally go bankrupt once and for all.

Tue, 04/19/2011 - 16:49 | 1185656 deaglecat
deaglecat's picture

GM is dead.   Simple as.   

 

Just like a corpse, the hair and nails grow on for a while...

Tue, 04/19/2011 - 20:57 | 1186405 Natasha Fatale
Natasha Fatale's picture

Has anyone read Todd Zywicki's article in the Spring 2011 'National Review'? It's titled 'The Auto Bailout and the Rule of Law'.

Here's the link, it's a must read for ZHers: http://nationalaffairs.com/publications/detail/the-auto-bailout-and-the-...

 

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