Got an email from Whitney Tilson in which he clarified the apparent long position on his 13-F.
“The reason MBIA and Ambac show up as longs in our 13-F is that it can be hard to get the borrow on the short, so when we can get the borrow, we short more than we want, and then buy the stock long to bring the net short position down to the level we want. Then, every time we want to increase our short position, we don’t have to get the borrow — instead, we simply sell down the long position.”
Simply put, he adjust the positions portfolio weighting with the long side..
