Oddball stories from 2010
The push in California to legalize marijuana generated plenty of national attention this year. It also generated one of the more creative investment plays of the year. Ahead of the November election in the Golden Gate state, portfolio manager Harry Rady began aggressively short selling Corrections Corporation of America Ticker:(CXW), an operator of a private correctional facility where up to 30% of the prisoners are incarcerated for — yep — marijuana-related crimes.
While Rady had other reasons for shorting the stock, he noted before the election that “the prisons are so overcrowded that it would be a very compelling reason to let those prisoners out of jail for marijuana-related crimes.” He added: “If I'm wrong, the stock is already trading at its 52-week high and probably doesn't go up on the news, but if I'm right, look out below.” Voters soundly rejected the proposal.