Buffett’s Partial Exit From Home Capital Is a Win for Marc Cohodes

Short seller Marc Cohodes feels vindicated in seeing Warren Buffett’s Berkshire Hathaway unload shares of the mortgage lender.

David Williams/Bloomberg

David Williams/Bloomberg

When Home Capital Group announced Wednesday that Berkshire Hathaway was selling at least half of its shares in the mortgage lender via a Dutch auction tender offer, the stock promptly plunged to C$14 ($10.37).

Bad news for Home Capital shareholders, but good tidings for Marc Cohodes, who has been shorting the stock for five years, or thereabouts, beginning when it was trading north of C$50.

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