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Much like Michael Burry and Steve Eisman, who shot to fame and fortune by calling the housing bubble in 2008, Bill Martin stood out as the "big short" during this year's banking crisis. The founder of family office Raging Capital Ventures bet against Silicon Valley Bank before its collapse in March. "Just like you would short a bank in Texas when oil prices collapse, I was looking for banks with exposure to venture. And that's what led me to Silicon Valley Bank," Martin said in CNBC PRO's "Art of the Trade." The short seller also shared how he managed risk for the volatile trade, as well as other opportunities he capitalized on during the crisis.
Persons: Michael Burry, Steve Eisman, Bill Martin, Martin Organizations: Raging Capital Ventures, Silicon Valley Bank, CNBC Locations: Texas, Silicon
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCNBC Special Pro Talks: Investor who predicted the Silicon Valley Bank collapse gives his best betsHe’s the new ‘Big Short.’ Raging Capital Ventures Chairman & CIO William Martin famously warned of Silicon Valley Bank’s problems two months before its demise and profited on its collapse. Martin joins a CNBC Special Pro Talks with how he is investing for whatever comes next and to answer your questions.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSVB got greedy and bought long-duration, low-interest-rate mortgages: Raging Capital Venture's MartinBill Martin, founder of Raging Capital Ventures, joins 'Power Lunch' to discuss what concerns he saw ahead of the Silicon Valley Bank collapse, the venture capital bubble and why SVB didn't take action on their losses sooner.
William Martin has emerged as the "big short" in the latest banking crisis brought on by the collapse of Silicon Valley Bank. The Rocky Hill, New Jersey-based short seller from Raging Capital Ventures singled out Silicon Valley Bank and announced a short position in a Twitter thread on January 18, the day before the bank's quarterly earnings. Martin warned of SVB's large held-to-maturity securities portfolio and accelerating deposit outflows, the exact culprit that brought down the venture capital-focused bank. "There are a lot of banks that have these type of loans and mortgages, but not in the significant position that Silicon Valley Bank had," Martin said. The investor said he covered some of his large short position last Thursday, but was still short SVB into the collapse.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSVB had roughly $16 billion in unrealized losses: Raging Capital Ventures' William Martin, who called its collapseBill Martin, the founder of Raging Capital Ventures, joins 'Halftime' to discuss Silicon Valley Bank's investment in low rate mortgages, the scale of SVB's unrealized losses and the venture capital response to the SVB collapse.
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