@profplum99 @modestproposal1 I follow SB somewhat closely. There've been several (lots of) smaller funds/fund-like entities launched/established for *specific* investments/trades in the past 24mos (outside VF). VF2 was launched earlier this year. I do not know of a generic broader-mandate "$1B equity fund."
@profplum99 @modestproposal1 The company HAS bought other stocks on an outright non-control position basis before. The Nvidia position (bought in 2018, sold in Jan-19 IIRC) was probably the best-known one. That was in VF. There have been others.
@profplum99 @modestproposal1 Structure of Nvidia trade was long equity position funded by a margin loan. The "equity" check was then funded inside VF1 by combo of equity and VF's "pref" financing.
The "exit" was done through a collar (i.e. sale of 60-65% of delta on day 1, residual risk to collar strikes).
The "exit" was done through a collar (i.e. sale of 60-65% of delta on day 1, residual risk to collar strikes).
@profplum99 @modestproposal1 A "stock replacement trade" involving selling the stock and buying a call spread is functionally the same as holding a stock and doing a collar on it.
They have long experience executing collars against stock (first multi-billion collar I know of was YHOO in early 00s).
They have long experience executing collars against stock (first multi-billion collar I know of was YHOO in early 00s).
