What does George Soros see in Lehman Brothers?
Last year was a sweet comeback year for George Soros. His fund was on fire. And he seemed to really understand the credit markets and the effect the temblors would have on Wall Street firms. This made his recently accumulated 10 million share stake in Lehman Brothers all the more puzzling. So what does he see? Well, as the Motley Fool notes, this could be a short term bet. The battered shares, at less than half of book value, may be due for a dead-cat like bounce (we may have seen it already, in fact). Or he may be betting that embattled CEO Dick Fuld can manage his way out this mess. Then again, he may discern something that we mortals can’t. Of course, he’s not guaranteed a win with this bet. Value buying hasn’t been a winning strategy when it comes to financials. For more: – here’s the article Related Articles: The greatest short bets of all time Does Soros still rule? Lehman Brothers in need of massive surgery?
