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 20:01 -0500
"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 06:06 -0500
Sometimes you have to work really hard for those "soft dollars."
... comes from Dan Loeb of Third Point, who as Gawker points out was a member of the hacked cheating website: due diligence.
Yesterday, we highlighted what could well have been the catalyst for the collapse late in the session. SUNE has crashed in the last two days as the hedge fund hotel which boasts such guests as Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon, sees mass liquidations, and judging by this morning's 6% plunge in the face of a notably higher broad market, it appears the margin-call driven liquidation may be continuing if not accelerating.
With some of the biggest hedge funds - including Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon - all heavily invested in Sun Edison, we can't help but wonder if the total and utter collapse in the stock from yesterday's highs indicated forced liquidations that smashed it another 18.6% lower today with dramatically escalating volumes into the last hour (when stocks collapsed...)
While the "hedge fund" hotel strategy works on the way up, when everyone makes roughly the same profits, it is on the way down when these hedge fund hotels become "Hotel California" - hedge funds can check out, and sometimes they can even leave... with massive losses. According to a Bloomberg analysis, many of these hedge fund hotel stocks, or companies where hedge funds hold a combined stake of at least 25%, suffered declines of as much as 42 percent in the recent stock market rout.
It is unclear what catalyzed today's dump. Futures were briefly green at the open, then as if all hell broke loose and without an explicit catalyst (although the technical collapse of numerous "story stocks" which had been market leaders for months, both today and in recent weeks has not helped) the E-mini, and individual stocks, just took out level after level of bids and at last check the Dow has dropped to 6 month lows, the S&P is just barely green for the year, while the biggest pain is in the Nasdaq which has dropped as much as 2% intraday. Below we lay out the biggest losers from today's market drop.
Lately, a varied chorus of powerful union bosses, politicians and candidates, an asset management company executive, and a few ivory tower types have asserted that activism is short term in nature, engaged in by “hit and run” investors who care only about making a quick buck while leaving a company and its employees in ruins. It might surprise people to hear that we agree completely that the sort of activism they describe is abominable. Luckily, it does not really exist, and certainly not at Third Point. Activists today are very different from corporate raiders of the ‘80’s (about whom these criticisms might have been leveled fairly).
Initial conditions matter when contemplating impact of Greek referendum