Taking out the $DASH!
The 🐿️ is unicorn hunting, with a long hedge (where capital is treated better).
Taking out the $DASH!
In the second section of Monday’s note (for paid subscribers) we narrowed down the field of fugitive unicorns.
Once again, the 🐿️’s attention was drawn to DoorDash and I updated my original short thesis - ‘The end of the DASH for trash?’ - from this time last year.
I simply do not understand how this business can create economic value for shareholders in the long run. In the meantime, CEO Tony Xu and his fellow insiders do not appear to be able to sell their stock fast enough.
However, shorting a high beta equity when Jerome Powell just blew the whistle on the start of a monetary easing cycle at Jackson Hole last week may not seem like a brilliant idea. We have a plan! We have a long hedge in a place where we feel that capital is treated better and where those rate cuts may in fact help more.