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Comment by toinewx | Hacker News Reader

The author had a short position. You can find it at the end of the article:

   Disclosure: I/we have a beneficial short position in the shares of SIVB either 
   through stock ownership, options, or other derivatives.

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You say that like it's some gotchya, but someone who felt the bank wasn't in a good financial position would naturally short it. This just means the guy put his money where his mouth is.

It's beneficial for someone who is shorting a stock to put out negative press about the company. It's basically the modus operandi of some hedge funds.

I also don't get the gotcha though. As long as it's disclosed and the facts are true I don't see the problem.

I assume it's going to be much, much riskier to rely on sentiment affects of an article rather than valid research when shorting.

> It's beneficial for ...

It's beneficial for anyone has a thesis that a stock is mispriced to:

* Take a position (short or long) that will take advantage of the mispricing

* Broadly communicate this thesis after taking the position

So... he put his money where his mouth was? Sounds better than putting it in SVB.

If they thought the stock was going to $0, they sure wouldn't have a Long position would they?

What do you think all these guys on CNBC all day talking up stocks do.. not own it already themselves?

I believe this is called "talking your book" and it should be your default assumption of investor behavior.

You would be stupid not to after stumbling on a gem like this.

Yes, but the author was also completely correct about their financial situation. The disclaimer doesn't mean "I'm making this up."

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