We mentioned yesterday that Corrections Corp of America is the one company that has the most to lose if California’s Prop 19 passes.
If marijuana is made legal, then the provider of private prisons potentially has a lot to lose, since it will be incarcerating fewer non-violent (and violent) “criminals.”
As such, the company has been giving to anti-Prop 19 politicians like Dianne Feinstein.
But the polls are looking bad for Prop 19, and so we feel sorry for hedge funder Harry Rady has taken out a big short bet on the company, according to InvestmentNews.com. He obviously agrees with our logic, but also must be pretty convinced that Prop 19 will pass in order to take a short. At one point it did look likely to pass, so he may have thought it was a sure thing.