Despite complaints by hedge funds that ETFs are eating their lunch (and dinner), an interesting observation emerged in a new reported from Deutsche Bank: Hedge Funds are allocating increasingly more capital toward ETFs. This post shows why, and who are the 20 hedge funds with the highest ETF investments.
One month after a major shake up at Bridgewater, which saw Ray Dalio step down as co-CEO, as well as the departure of the recently hired former Apple executive Jon Rubenstein, the world's largest hedge fund has lost its head of trading, Jose Marques, who according to Business Insider is in the process of leaving the firm.
A 24-year-old computer contractor from Hamden was arrested on the charge of stealing confidential documents from the world's biggest and most secretive hedge fund Bridgewater Associates, according to police.
"Inflation will soon become a main concern for investors... this will change the basic relationship between stocks and bonds and could set up the financial markets for severe turmoil, like in the late 1990s when the collapse of Long-Term Capital Management sent shock waves around the globe."
Yesterday's barrage of 13F releases showed that hedge funds like Third Point, Eton Park and Blue Ridge piled into shares of major banks, David Tepper's Appaloosa jumped into the pharma sector starting new positions in Teva, Pfizer and Mylan while Buffett aggressively added to airline steaks and nearly quadrupled his Apple position to $7.7 billion. Here is a full breakdown of who bought what in the fourth quarter.
“The big picture for investors is this: Trump is high volatility, and investors generally abhor volatility and shun uncertainty... If things go wrong, we could find ourselves at the beginning of a lengthy decline in dollar hegemony, a rapid rise in interest rates and inflation, and global angst...”
“Nationalism, protectionism and militarism increase global tensions and the risks of conflict. For these reasons, while we remain open-minded, we are increasingly concerned about the emerging policies of the Trump administration,”