Shorting SpaceX? Investors Flock to Jefferies, Which Missed the IPO

Odaily reported that when SpaceX announced its list of IPO underwriters, Jefferies was not among them. However, bearish investors, along with some senior executives at Jefferies Group, see this as a rare opportunity. According to sources familiar with the matter, hedge funds that did not invest in SpaceX are reaching out to Jefferies, inquiring whether they can short the stock after its listing.

As the largest U.S. investment bank left out of SpaceX's IPO, Jefferies is now in a uniquely advantageous position to arrange these transactions. While Wall Street firms routinely help clients execute various investment strategies on a company's stock, lawyers at these firms may become uneasy when one department expresses a bullish view on a stock while another helps clients short the same stock. Moreover, it is hard to imagine how Elon Musk, known for his fickle nature, would react if any of the 23 banks underwriting the SpaceX IPO were to "switch sides" and engage in bearish trades. (Jin Shi)