Looking to top the CNBC Portfolio Challenge leader board? The following links will help; Week 10 Final Portfolio, Contest Wrap-up and Thoughts • July 18 Bonus Bucks Answers

Lehman Selloff Accelerates, Hedge Fund Manager Questions Assets

The eerily reminiscent slide in Lehman Brothers Holdings Inc. (LEH) is picking up steam again with the stock down $2.26, or 5.87%, to $36.24 on heavy volume of 28.3 million shares, dangerously heading towards its March 52-week closing low of $31.63. Already losing about 16% of its value over the past few trading sessions, the selloff in Lehman is continuing on fears of larger write-downs and has accelerated intra-day as no one wants to stay long ahead of a three day weekend. The WSJ notes that Greenlight Capital hedge fund manager David Einhorn spoke yesterday at the Ira Sohn Investment Research conference, questioning why the company only wrote down a $6.5 billion collateralized debt portfolio by just $200 million, and also taking issue with large, unrealized gains the firm booked in the first quarter. A known Lehman short seller, Einhorn is not the only one betting on further downside. In looking at the options market, there is an overwhelming bias towards buying puts, with some tremendous activity in the front month contracts, particularly the out of the money June puts with a strike price of $35, $30 and $22.50 where total volume is in excess of 50,000 contracts. With growing uncertainty surrounding the value of Lehman’s financial assets, the bottom appears to be falling out.

Subscribe to our RSS feed to ensure that you receive the latest word on the street.

Related Articles

• June 12, 2008 -- Lehman CFO, COO Out, Stock Down; Capitulation Bottom?
• June 9, 2008 -- Lehman to Raise $6 Billion, Shorts to Remain Entrenched
• June 2, 2008 -- Lehman Estimate Cut, Rating Downgrade Complete Bearish Trifecta

It's that time of year again. CNBC's Million Dollar Portfolio Challenge will be getting underway on Monday, May 12. The tournament is similar in fashion to last year; each contestant receives 1 million CNBC Bucks and can trade stocks with a minimum market cap of $500 million. In addition to 10 pretty cool weekly prizes, there is a grand prize of $500,000 to the lucky contestant who finishes with the highest portfolio return. The only twist to the tournament is that currency trading is now allowed.

We'll be doing a number of things this time around to help with your trading success and so you can have better shot at winning the tournament. Follow the links below to learn more, and good luck!