Hedge-Fund Son Thought Hedge-Fund Dad’s Trades Were Pretty FishyBy
It turns out that having Leon Cooperman for a grandpa is pretty much exactly like you’d expect:
On July 28, 2010, at approximately 6:59 a.m. EDT, APL publicly announced for the first time that it was selling Elk City for $682 million. As a result, on that day, APL’ s stock price increased approximately 31% and other APL-related securities greatly increased in value.
After this announcement, Cooperman emailed a family member stating that: “[minor family member] will be pleased to know that the bond I bought [for minor family member] the other day has risen 7% in price as the company just sold some assets that resulted in an improvement of their credit standing.”
Some little boys and girls like ice cream, and some like pony rides, butall little boys and girls love it when bonds that they own rise 7 percent due to asset sales that improve the issuer’s credit standing. Making a quick event-driven profit in the bond market is like Christmas and a trip to Disneyland combined, for a child…
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