Burned By AIG

Monday, 7 May 2012 | 2:13 PM ET

A long position in AIG looked like a hot trade but so far all it’s done is burn Stephen Weiss. What now?

Weiss, who is managing partner of Short Hills Capital made the fateful call on Thursday May 3rd.

“I own it in size,” he said at the time. His thesis was short and sweet. “They’re just going to liquidate their assets and buy back the stake from the government.”

However, this position cost Weiss a pretty penny. He’s down more than 10% in less than a week.

Now what?

“I doubled my position on Monday,” says Weiss. “The story hasn't changed. AIG is going to buy back 40-50% of the government’s stake. That’s hugely accretive. The pullback is an opportunity.”

Should You Still Be With AIG?
Shares of AIG have plunged over 10% since Stephen Weiss, Short Hills Capital, offered his bullish trade last week. Meanwhile Win Thin, Brown Brothers Harriman, offers his outlook on global currencies now.

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Trader disclosure: On May 7, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long JPM; Joe Terranova is long UPL; Joe Terranova is long CHKM; Joe Terranova is long HPQ; Joe Terranova is long LQD; Joe Terranova is long LPX; Joe Terranova is long CHRW; Joe Terranova is long BAC; Stephen Weiss is long JPM; Stephen Weiss is long AIG; Stephen Weiss is short NFLX; Jon Najarian is long call spreads AAPL; Jon Najarian is long call spreads CIEN; Jon Najarian is long call spreads GS; Jon Najarian is long call spreads FFIV; Jon Najarian is long call spreads FIO; Jon Najarian is long call spreads NFLX; Jon Najarian is long call spreads AH; Jon Najarian is long call CIGX; Jon Najarian is long call CBOE; Jon Najarian is long call CME; Jon Najarian is long call DDMG

For Brian Kelly
Brian Kelly is long KRE
Brian Kelly is long USG
Brian Kelly is long VZ
Brian Kelly is long BRITISH POUND
Brian Kelly is short SWISS FRANC

For Mark Fisher
Nothing to disclose

For Michael Pachter
Nothing to disclose

For Tim Conder
Nothing to disclose

For Win Thin
Nothing to disclose

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