This may come across as a stupid question. But I am new to investing. For now let's just ignore the process of actually raising a fund and focus on whether or not running a fund that is based on reports can be successful or not.
So the basic premise of the fund is to find good companies and either go long or short on those companies, right but the real selling point is that we publish a report that influences other players in the market to take a similar position to us which would in turn move the stock the way we wanted it TO. (Basically stock manipulation)
The first time I saw something being done before was in the Wolf of Wall Street when JB had his brokers pump up the price and they made a lot of money.
Hindenburgh does a similar thing buts since their findings are real, it is considered legal.
My question is if I followed a similar model (legal ofcourse) would it work out?
I also know that investment banks, hedge funds etc publish their own reports. Do they really make an impact significant enough to move the stock price?
Any responses would be appreciated.
Leave a Reply