Shorts Hurt As Lifelock Inc (LOCK) Soars 37% On FTC News

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Shorts Hurt As Lifelock Inc (LOCK) Soars 37% On FTC News

Whitney Tilson on Lifelock soaring 38% after announcing settlement with FTC and strong earnings. Excerpted from an email Tilson sent to investors last night (right now the stock is up 37% in pre-market trading).

Lifelock is a popular short (16% short interest) that really worked (I was short it until I did my mass-cover a year ago) – but they just announced strong earnings and a settlement with the FTC, which has sent the stock soaring 38% after hours.

It’s a good lesson on sticking around too long on the short side – and also the perils of being short: a) high-cash flow generative businesses; b) stocks that are cheap based on traditional valuation metrics; and/or c) situations that depend on regulators taking strong action (sometimes they do, sometimes they don’t).

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More

That’s not to say such shorts can’t work – I’ve made a ton on WRLD this year and remain short WRLD plus HLF right now, despite these three things being true – but there’s risk…

LifeLock

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