Bridgewater

Derivative Strategist Warns Of $150 Billion In Quant Selling Over The Next Three Days

“The bigger the down move today, the more they have to sell, which would basically create a vicious cycle,” Cheong, head of Americas equity derivatives strategy at UBS, said in a phone interview. “We’ll see front-loaded selling in the range of $100 billion to $150 billion over the next two to three days. It could be very similar to August in terms of model-based selling.”

What The Biggest Hedge Funds Did In Q1: The Full 13-F Summary

While far less attention is being paid to hedge fund 13F filings, which show a stale representation of equity long stakes among the hedge fund community as of 45 days prior, than in years gone by as a result of increasingly poor performance by the 2 and 20 crowd, they still remain closely watched source of investment ideas but mostly to find out what the new cluster ideas and hedge fund hotel stocks are at any given moment. Here are the highlights from the latest round of 13F filings.

Futures Fizzle After Oil Fades Bounce Above $48

It has been more of the same overnight, as global stocks piggybacked on the strong US close and rose despite the lack of good (or bad) macro news, propelled higher by the two usual suspects: a higher USDJPY and a even higher oil, if mostly early on in the trading session.

The New New 'Deal' - "Markets Are Too Important To Be Left To Investors"

In the same way that FDR had an existential political interest in generating inflation and preventing volatility in the US labor market, so does the US Executive branch today (regardless of what party holds the office) have an existential political interest in generating inflation and preventing volatility in the US capital markets. Transforming Wall Street into a political utility was an afterthought for FDR; today the relative importance of the labor markets and capital markets have completely switched positions. Today, the quote would be "markets are too important to be left to investors."

Frontrunning: March 11

  • Shares bounce, euro fades after savage ECB reaction (Reuters)
  • Trump's Islam comments draw attacks as Republicans discover civility (Reuters)
  • Oil Prices Rise on Hopes Glut Will Ease (WSJ)
  • IEA Says Oil Price May Have Bottomed as High-Cost Producers Cut (BBG)
  • Why Euro-Area Inflation Will Be Low for Years, According to Draghi (BBG)
  • Calmer markets, positive data prime Fed to push ahead with rate rises (Reuters)

World's Largest Hedge Fund Appoints Hardware Engineer As Co-CEO

That the world's largest hedge fund, Ray Dalio's Bridgewater, just announced the appointment of an hardware engineer, even one as enlightened as former NeXT and Apple executive Jon Rubinstein, should tell you all you need to know about what is really going on in the "market."

Ray Dalio Tells Investors: "Don't Trade Against Pros Like Us, You Will Lose... Own Gold"

"I want to just convey to investors, I think in the average investor, most everybody, do not compete against pros like ourselves or other people; do not making tactical asset allocation bets or moving around in the markets, because you will probably lose.... And also I think that gold at 5 percent of your portfolio, 5 percent or 10 percent of your portfolio, under the circumstances, would be also a prudent thing to do."

Bridgewater's Ray Dalio Speaks Live From The University Of Texas

Moments after speaking with Bloomberg's Michael Schatzker, a speech which generated substantial headlines (and which we will cover shortly), Bridgewater's Ray Dalio took the podium at the University of Texas Board of Directors 20th Anniversary event.

Fear The Smell Of (Monetary) Napalm In The Morning

If central bankers think that "helicopter money" might be an option to combat deflationary pressures and sluggish economies, the right time to launch the choppers is before consumers realize they need them. As history shows, after that, it is too late.

JPMorgan Head Quant Explains Why Most Hedge Funds Have Been Slammed In 2016

"YTD performance of equity long-short Hedge Funds was likely dragged down by their net long equity exposure and heavy exposure to popular growth and momentum stocks. As a result, the HFRXEH index performed in line with passive investors (S&P 500). The momentum selloff in the first week of February negatively impacted equity quants who are on average overweight  momentum/low volatility factors"