Wall Street billionaires are not used to being on the outside looking in. But that is where they find themselves after President Trump ignored their appeals to call off his tariff plans which they fear could endanger the economy. With the backdrop of rapidly mounting stock market losses, corporate titans have worked every angle — … Read more
Since Donald Trump’s election win, the hedge funds clinging on to bets against Tesla Inc. have lost billions of dollars, as they feel the fallout of the special relationship between the president-elect and Elon Musk. Hedge funds that had short positions against Tesla between election day and Friday’s close took an on-paper hit of at … Read more
For years, hedge funds knew that one man at Morgan Stanley could make them millions. A big block of shares would come up for sale, and block-trading head Pawan Passi would tip off the funds. One even told Passi he had put that investor “in the game” (adding a colorful modifier) and that the investor … Read more
Eminent fund manager Thomas Schneeweis says focusing on past performance is the first and biggest mistake investors make when it comes to asset allocation. According to Schneeweis, investors should be rather focused on risk instead of returns. “Much of the past, though interesting, may have very little relevance to what we do today,” he said.” … Read more
A searing revival in technology companies was supposed to collapse under its own weight and spell doom for investors everywhere. As of now, that’s not how it’s playing out. Angst over earnings and lofty valuations has been building for a month. Hedge funds were net sellers in tech mega-caps during the previous five weeks ahead … Read more
Greed and fear often hinder investors’ ability to think rationally. When the market goes haywire, chances of making huge losses become a real possibility as the emotional aspect comes to play. This is where quant strategies score. Quant funds rely on algorithmic or systematically programmed investment strategies. Investments in various strategies are based on multiple … Read more
It’s rare that a herd of retail traders push back the stronger hedge funds. Synopsis In September 2020, activist investor and founder of online pet food portal Chewy, Ryan Cohen bought 13% in the company. The GameStop incident has caught the attention of markets, regulators and governments worldwide. It has been a classic financial power … Read more
By Bill Dudley After the U.S. financial system came to the brink of collapse in 2008, Congress and regulators spent years on renovations designed to prevent that from ever happening again. More than six months into a global pandemic that has delivered another monumental shock, it’s worth asking: Were the reforms successful and sufficient? The … Read more