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.
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...
"The result of all of this was one of the most catastrophic periods of hedge fund performance that we can remember since the inception of this fund... There is no doubt that we are in the first innings of a washout in hedge funds and certain strategies."
With European markets closed across the continent on Monday as the Easter holiday continues, overnight Asia was busy with China Shanghai Composite letting off some steam, and closing down 0.7% at session lows on concerns the Shanghai and Shenzhen home bubble have been popped by the politburo, Japan was a different story with the Yen sliding following a report by the Sankei newspaper that Abe will announce in May his intention to delay the planned levy hike, coupled with additional reports that Japan will unveil a major fiscal stimulus (and just on Friday Abe said he is "not thinking at all about supplemental budget" at this time).
There are 3 crucial things you need to analyze and evaluate before investing even a penny.
Yesterday was the last day for hedge funds to submit their Q4 13-F filings, and the biggest reactions this morning can be found in the stock of Kinder Morgan which rises 9% pre-mkt after Berkshire reported a new stake. Autodesk also gained 2% post-mkt yday after Lone Pine took a new position. Several funds boosted or reported new stakes in JD.com while Jana Partners reported a new stake in Valeant. Both Icahn and Einhorn trimmed their AAPL holdings.
Cynical short-sellers are targeting some of Wall Street's most famous short-sellers. Amid plunges in the stock prices of David Einhorn's Greenlight Capital and Dan Loeb's Third Point reinsurance entities, Bloomberg reports that bearish investors have piled in pushing short interest (as a percent of shares outstanding) to its highest since 2009.
The just concluded 13-F bonanza shows that "some of the world’s top hedge fund managers scaled back their U.S. stock investments last quarter as markets tumbled." Below, courtesy of Bloomberg, is the full summary of what the most prominent hedge fund names did in Q3...
How the mighty have fallen. Once (and still) "no brainer" hedge fund hotel, sponsored by any and all talking head; now sub-$5 share price 'languisher in the basement' of the last few years. SunEdison (down 14% today) is now down 86% from its July 20th highs as an armada of leveraged speculators flood through the straits of first-mover advantage...
"... we have more single short names than long positions in our book today. We have reduced our net exposure by nearly a third through sales and new shorts over the past few months."
Here is what happened: a whistleblower who worked for the Federal Whistleblower Protection Program was fired for blowing the whistle on his employer: the very agency that was supposed to protect him.
Fortress Backs Hundred Million Dollar Subprime, Payday Lender Scheme: "He Has Peacock Feathers Tattooed Down His Left Arm"Submitted by Tyler Durden on 10/06/2015 21:01 -0400
"I don’t hide tattoos, I don’t take earrings out. I just don’t do that, because ultimately if you don’t like who I am, you’re not going to like what I do."
In August, hedge funds blamed risk-parity funds for their dramatic underperformance. In September, the underperformance continued however this time, with risk-parity funds supposedly buying stocks, one can't blame them. To be sure, some such as Ackman whose 20 million shares of Valeant are hurting badly, will blame the Martin Shkrelis of the world for the biggest biotech tumble in years, but others may have to bite the bullet and admit it is their own lack of ability to come up with alpha in a centrally-planned "market" that is the reason.
Many Republicans simply delude themselves that Trump is not a serious candidate who cannot, for some reason, get the nomination. We say, don’t underestimate his ego, which we know is and always has been enormous.
JPM Storms Out In Defense Of The Sunny Hedge Fund Hotel: Initiates SunEdison With An "Overweight" And $24 TargetSubmitted by Tyler Durden on 08/31/2015 07:06 -0400
Sometimes you have to work really hard for those "soft dollars."