Short SpaceX? Investors Flock to Jefferies, an IPO Non-Participant

Odaily Planet Daily News: When SpaceX announced its list of IPO underwriters, Jefferies was not among them. However, bearish investors and some senior executives at Jefferies Group see this as a rare opportunity. According to sources, hedge funds that did not invest in SpaceX are contacting Jefferies to inquire about the possibility of shorting the stock after its listing.

As the largest US investment bank not involved in the SpaceX listing, Jefferies is now in a uniquely advantageous position to arrange these trades. Although Wall Street firms typically help clients with various investment operations regarding a company's stock, lawyers at these firms may feel uneasy when one department expresses a bullish outlook on a stock while another department helps clients short it. Moreover, it is hard to imagine how the notoriously fickle Elon Musk would react if one of the 23 banks underwriting the SpaceX IPO were to "turn against it" by engaging in bearish trading. (Golden Ten)