Value Hive Podcast ARK Enters The Bear Cave w/ Edwin Dorsey
The Value Hive Podcast is brought to you by TIKR. Join the free beta today at TIKR.com/hive. They're constantly releasing new updates that make the platform better including a new Business Owner Mode that hides share count, market cap, and enterprise value. I couldn't be more excited to partner with TIKR.
This week I chat with Edwin Dorsey, founder, and author of The Bear Cave. The Bear Cave is a short-focused newsletter dedicated to finding interesting companies doing sketchy things. Edwin began his obsession with the stock market in the second grade. As we discuss in the podcast, Edwin was born to be a short seller.
Our chat covers a few key topics around short-selling, including:
- What Makes A Great Short Idea (Hint: it's not "astronomical valuation")
- The Importance of Shorting in Capital Markets
- ETF Mechanics & The Impact of Front-Running Redemptions
The bulk of the podcast focuses on the current ARK ETF dynamics and the potential of a severe redemption event. Edwin does a fantastic job describing the inner mechanics of ETFs and why the same "rails" that drove ARK up the AUM ladder could bring them down in the blink of an eye.
Here's the timestamp:
- [1:20] Is A Short Seller Born or Made?
- [4:10] What Makes A Great Short Idea?
- [8:00] Root Insurance $ROOT
- [17:05] Interning at SEC Enforcement Division
- [20:23] ARK Enters The Bear Cave
- [35:12] What Makes 2021 Different Than The 2020 Flash Crash?
- [44:57] Vuzix Corp $VUZI
- [58:04] Future of Bear Cave Newsletter
- [61:00] Closing Questions
If you like what you heard and you want to learn more about Edwin, check out these resources: