Candidate Trump loved a strong dollar, said the Fed's low interest created inequality and a false economy and hinted Janet Yellen needed to go. Now that he’s the president, he loves all three and wants them to stay.
General Motors' holder Greenlight Capital released a presentation in which David Einhorn recommended that GM should distribute a second class of common stock that the holder calls “Dividend Share." Einhorn believes that the proposed plan will unlock between $13 billion -$38 billion of shareholder value.
With Macy's making the headlines in the past few days on speculation it was shopping itself for a potential buyer, a thesis first laid out by David Einhorn one year ago, moments ago the WSJ reported that the Hudson's Bay, the Canadian owner of Saks and Lord and Taylor, has made a takeover approach for the landmark retailer, sending the shares of both companies surging.
1) Long a variety of low-multiple, tax-paying, U.S. value stocks; 2) Long AAPL; 3) Long GM; 4) Short “bubble basket.” 5) Short oil frackers, 6) Short CAT (and other similar industrial cyclicals that have moved much higher post-election).
"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."
In a letter to investors, Elliott Management execs warned that a rapid inflation is the $30 billion hedge fund's biggest concern in the current environment, and that such a spike would not only collapse bond prices, but potentially lead to a stock market crash.
"We try to analyze all of these political and economic events in a dispassionate manner, separating our feelings from what we think the impact will be on the economy, markets, and certain industries. Maintaining such emotional distance has been particularly difficult during the most disappointing and bizarre election in our country’s history."
"Most of the quarterly losses came from the short book. An undisclosed oil fracking short (not the Mother-Fracker) was our biggest loser, followed by Amazon, which reported a stronger quarter than we expected. In the long book, Apple (AAPL) and Macy’s were material losers. The earnings estimates for AAPL continue to fall."
For the past 50 or so years, the quickest way for a sharp young sociopath to get rich has been to join an investment bank or hedge fund. The former were riding a “regulatory capture” gravy train that became ever-more-lucrative as new government agencies morphed into subsidiaries of Wall Street. Said another way, when financial assets are being artificially inflated by excessive liquidity, it’s easy to make money by shuffling this ever-appreciating inventory back and forth, and to look very smart while doing so. But those days are ending with a bang...
Moments ago, the 2016 edition of the Sohn Investment Conference started, a feeding frenzy for traders and hedge fund managers such as Gundlach, Einhorn and Chanos who descend on this popular annual "round table" to pitch their best and worst ideas. As always, the moment a company's name is mentioned in a bullish or bearish context, its stock is sure to surge or slump, as the headline-hungry algos immediate pounce in the current reactionary market environment. But is following the advice of these hedge fund gurus such a good idea?
It's over. After months of arguing that everything will be ok as investors flee the troubled company, it is now officialy over: SUNEDISON FILES FOR BANKRUPTCY AFTER ACQUISITION BINGE, SECURES $300M IN NEW DIP FINANCING