GOLDMAN: Here Are 25 Stocks That Hedge Funds Are Shorting Like Crazy (BusinessInsider)
The S&P 500 closed at an all-time high of 1,804 on Friday, and Wall Street’s short sellers with the resources to ride out the high have been salivating waiting for the market to crumble. Goldman Sachs Group, Inc. (NYSE:GS)‘ new Hedge Fund Monitor report, which looks at 783 funds with nearly $2 trillion in gross equity positions, lists the 50 favorite short positions among the world’s largest hedge fund managers. “More than half of the 50 key short positions have outperformed the S&P 500 YTD, and five have returned over 100%,” noted Goldman’s Amanda Schneider.
SEC Will Investigate Hedge Fund Investors Stealing From State And Local Pensions (Forbes)
State and local pension investments in hedge, venture capital and private equity funds—alternative investments—have doubled in recent years and now amount to 24 percent of portfolios. The percentage of assets allocated to these lightly-regulated, secretive funds is staggering. Tens of billions in public workers’ retirement savings across the country are currently at risk from pervasive, yet largely unknown, abuses related to alternative investments. The need for an immediate, focused response by securities regulators and law enforcement is compelling.
Once giant FX Concepts’ assets now just $2 mln-court filings (Reuters)
FX Concepts, once the largest currency hedge fund in the world, has less than $2 million in assets now and $79 million in liabilities, according to the latest court filings on Monday. The fund filed for bankruptcy protection more than a month ago as its assets dwindled due to market losses and redemptions from major clients. At its peak in 2007, the $14 billion that FX Concepts had in assets under management made it the largest currency hedge fund in the world. The latest court filings showed FX Concepts has $1.62 million in assets and about $79.2 million in liabilities. The biggest part of those assets is a $1.61 million loan note from FX Concepts Chairman and Chief Investment Officer John Taylor.
Trader admits to ‘gambling’ and big losses (HereIsTheCity)
The New York Post reports that Jesse Tortora, the former tech professional turned U.S. government witness – who was at the centre of what prosecutors call a ‘corrupt circle’ of insider-trading pals – said he lost most of his millions gambling in Vegas, day trading and paying legal fees. The 37-year-old Tortora, testifying for the third day in the case against SAC top money man Michael Steinberg Monday, said his big year at now defunct hedge fund Diamondback was 2008, when his compensation hit $2.5m. He only made $800,000 in 2009 and left the firm that was founded by former SAC portfolio managers early in 2010. Tortora, who is living with his parents in Florida while he awaits sentencing for his cooperation in the Steinberg trial, said he has only $100,000 left from his years of living high as a hedge-fund analyst.
The Warren Buffett Bear Case For AstraZeneca plc (Fool)
Many investors who focus on a low price-to-earnings (P/E) ratio and high dividend yield in their search for value will have a hard time swallowing the maxim legendary investor Warren Buffett lives by: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. Today, I’m considering whether FTSE 100 pharmaceuticals firm AstraZeneca plc (ADR) (NYSE:AZN) is a ‘wonderful’ company, and whether its shares are trading at a ‘fair’ price. A number of times during…
Is Lady Gaga’s “Artpop” a warning to tech investors? (USAToday)
Carl Icahn says we’re in a bubble. Larry Summers says we’re not. Financial media have debated the topic in recent weeks, and both sides have offered some seemingly irrefutable points. Low interest rates would tend to drive up asset prices; however, high unemployment would tend to hold them back. Stocks aren’t historically overvalued, but then again the economy is historically weak. Corporate leverage is now at 2008 levels, and the picture is even worse overseas, but cash holdings are at record highs. It’s quiet – but is it too quiet? Personally, I haven’t paid much attention to the discussion. When Lady Gaga calls a press conference in Brooklyn to introduce an environmentally-friendly, flying dress – and the press actually shows up – it seems pretty clear to me that we’re in a bubble.
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