Buffett's Bet on Canadian Real Estate

Marc Cohodes was having dinner with a friend at the Slanted Door, a Vietnamese restaurant on San Francisco's Embarcadero, when he saw the news. Warren Buffett's Berkshire Hathaway Inc had just thrown a lifeline to Home Capital Group Inc, a Canadian mortgage lender. He said he's surpri...

Full description

Saved in:
Bibliographic Details
Published in:Bloomberg businessweek (Online) 2017-07
Main Authors: Buhayar, Noah, Dmitrieva, Katia
Format: Magazinearticle
Language:English
Subjects:
Equity stake
Investment advisors
Mortgage companies
Short sales
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Marc Cohodes was having dinner with a friend at the Slanted Door, a Vietnamese restaurant on San Francisco's Embarcadero, when he saw the news. Warren Buffett's Berkshire Hathaway Inc had just thrown a lifeline to Home Capital Group Inc, a Canadian mortgage lender. He said he's surprised Berkshire Hathaway would show up in something like this. It was a mild reaction, considering Cohodes' position. As a short seller, he has money riding on Home Capital's shares going down. He began betting against the stock in 2014, publicizing his view that the Canadian mortgage provider had lax underwriting and poor management. It didn't take long for the wager to pay off.
ISSN:0007-7135
2162-657X