"I have no interest in shorting a cultural phenomenon," hedge fund manager Jeffrey Matthews of Ram Partners told Reuters in an e-mail interview about the Facebook IPO.
Asked if this was because such stocks trade without regard to normal market valuation, he wrote back, "Bingo." Facebook closed its first day of trading on Friday, up only 23 cents, at $38.23.
As the hysteria continues over the most expensive technology IPO in Wall Street history, Matthews might reflect popular (and sane) sentiment, yet the news service notes certain investors are laying the groundwork for a Facebook short.
Short sellers looking to get in "are facing an uphill battle." Traders that Reuters interviewed said the stock is going to be hard to borrow, at least for a few days, and only the best-sourced hedge fund managers will able to find lenders.
A prime broker at one of the top underwriters of the IPO said the firm will not be lending shares at least until the initial settlement in three business days.
