[UVB-76]

My understanding is that the information was not withheld from retail investors; rather, it wasn't actively disseminated to them, and the significance of the information impressed upon them.

The reduced revenue estimates were public information; I recall reading about them myself before the IPO took place. If someone had put me in charge of billions of dollars and told me to take a position on the Facebook IPO, I would have shorted the stock, as many others did.

The crux of the issue is that wealthy institutional investors had analysts at their disposal to point out the revised revenue estimates, and retail investors like Swaminathan didn't. Retail investors were ill-prepared for the IPO, and they got burned.

[campnic]

They're ill prepared to consume the information in the format its delivered (if it is delivered at all). Notice, the revised S-1 doesn't say the amount of the adjustment, you had to receive that from Facebook via another channel. So, it doesn't really have to do with special analyst job knowledge, it has to do with special treatment.

I mean, "actively disseminated" seems a bit generous. They call 3 institutions to let them know meanwhile individual (notice i'm intentionally not saying "retail" because thats become some sort of in-crowd, brow beating, bullshit term for shaming regular, non-hedge fund investors) are left to read smoke signals. Its not that the institutional investors "had analysts at their disposal" its that the systems is built to make sure institutional investors and hedge funds get information others don't.

You can say what you want, but the quote from the hedge fund manager seems much more clear then your opinion, and he's a domain expert who took part in the situation.

>"There's "no way" a retail investor could have known about the lowered projections, unless he or she "had a friend at a multi-billion dollar institution," he added."