Many Lamentations Heard From Hedge Funds

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It seems a few big players were bitten a bit harder than you would expect by the recent whip-saw action at Volkswagen. Funds including SAC, Och Ziff, Perry Capital, Greenlight Capital, Marshall Wace, Odey Asset Management, York Capital and Glenview Capital seem to have taken a slap or two, and, if the Times Online is to be believed, some funds out there are near bankruptcy because of the swing. (Sloppy risk management, that).
Perhaps the bigger losers are the prop-desks at big investment banks (what remain of their number). Deutsche Bank and Commerzbank have suffered from rumored exposure along with Société Générale. (Hah hah! Sorry, we couldn't help it. They're French).
Porsche, on the other hand, is sitting on something like EUR 6 billion in paper profits.
At issue is the German regulatory environment, which does not require the disclosure of large stakes in cash-settled options. As a result, Porsche could end up with effective control of Volkswagen without so much as a 13D filing.
Mongrel General: WRONG! Porsche. What is best in life?
Porsche: To crush your financial enemies. See der capital driven before you. Hear the lamentations of dee regulatory relations women.
Hedge funds fear bankruptcy after Porsche squeeze [Times Online]

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