What Steve Cohen Should Have Tweeted About the Mets (Bloomberg Quint)
(Bloomberg Opinion) — I have no idea why New York Mets owner and billionaire hedge fund manager Steve Cohen tweeted that “it’s hard to understand how professional hitters can be this unproductive. The best teams have a more disciplined approach. The slugging and OPS numbers don’t lie.” If I were trading for Cohen and had five big losing trades in a row (the Mets had just lost five games in a row at the time of the tweet) bringing me to a net loss for the year (the losses pushed the Mets to one game below .500), I would know what it means if he walked to my desk and said, “Aaron, it’s hard to understand how a professional trader could be so unproductive. The best traders have a more disciplined approach. Your P&L numbers don’t lie.”
Investment Readjustment At Bridgewater Associates: Is The World’s Largest Hedge Fund Preparing For A Markets Slump? (Market Research Telecast)
The world’s largest hedge fund, Bridgewater Associates, has made several changes to its investment portfolio in the second quarter of this year that send signals that the entity founded by Ray Dalio is bracing for a stock market crash. The fund’s main acquisitions, which manages some $ 150 billion. According to Forbes, they focused on the financial, consumables, healthcare and consumer discretionary sectors, according to data from WhaleWisdom. The largest transaction was the purchase of 2,565,000 shares of Coca Cola followed by a bundle of listed mutual funds iShares MSCI Emerging Index Fund (1.7 million), 1.6 million shares of Walmart, 1.5 million Procter & Gamble and 1.1 million Johnson & Johnson.
Hedge Funds from Massive Money Managers BlackRock and Pimco are Trailing the Average So Far This Year (Business Insider)
Hedge funds from two asset managers, BlackRock and Pimco, are trailing the average fund this year. One fund in BlackRock’s lineup beat the 10% return that the average hedge fund delivered through July. Pimco’s $5.8 billion Tactical Opportunities Fund saw a 9.4% increase year to date at the end of July. Some of BlackRock’s hedge funds have seen stronger performance so far in 2021 than earlier this year, but four of its five strategies are still underperforming the average fund.
Photo by Marga Santoso on Unsplash
Global Fund Management Launches New Mixed Asset Arbitrage Fund (Hedge Week)
Global Fund Management, the asset management arm of the GDA Group, has launched its latest venture, the Avalon Fund. The fund is being launched by 12 Peers Capital, in partnership with GDA Capital, to provide a mixed asset arbitrage vehicle offering short and long exposure into digital assets, equities, and fixed income products. “Our mission is to create long-term value for our investors through the identification of digital asset strategies that generate alpha, while also limiting potential downside by generating yields from traditional market exposure like equities and bonds,” says GDA Group COO Zachary Friedman.
Cathie Wood Says Stocks are Not in a Bubble, Thinks Investors Betting Against Her Fund are Off Base (CNBC)
ARK Invest’s Cathie Wood on Thursday defended her innovation-focused strategies in the wake of investors betting against her funds. “I don’t think we’re in a bubble which is what I think many bears think we are,” Wood said on CNBC’s “Tech Check” on Thursday. “In a bubble, and I remember the late ’90s, our strategies would have been cheered on. You remember the leap frogging of analysts making estimates one higher than the other, price targets one higher than the other. We have nothing like that right now. In fact, you see a lot of IPOs or [special purpose acquisition companies] coming out and falling to earth. We couldn’t be further away from a bubble.”
