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.
“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.”