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Hedge Funds Are Betting Elon Musk Will Be Forced to Buy Twitter

Sept. 14, 2022, 12:58 PM

Hedge funds including David Einhorn’s Greenlight Capital and Pentwater Capital Management are wagering that Elon Musk won’t get his way this time.

Musk, the world’s richest person and a renowned sparring partner with regulators over securities laws, is trying to back out of his agreement to buy Twitter Inc. for $44 billion. Several hedge funds have purchased stock, options or bonds -- speculating that Musk will lose a trial scheduled to begin Oct. 17 in Delaware Chancery Court.

That could be a bright spot for a type of hedge fund having a tough year. So called event-driven funds, which ...