Watch Leon Cooperman’s Biggest Positions Get Hit (CNBC)
The vultures were circling Leon Cooperman‘s biggest positions after the SEC announced at 10:47 a.m. ET Wednesday it was charging the billionaire and his firm Omega Advisors with insider trading. The speculation by the traders knocking these stocks is that Cooperman will face big redemptions because of the charges and that in turn may force the firm to sell some of his holdings to cover those redemptions. The hardest hit positions were the smaller stocks where a combination of their light trading volume and Omega’s position size would make it difficult for the hedge fund to exit the position in an efficient manner.
Tiger Cub Citrone Sees Market in Biggest Correction Since 2008 (Bloomberg)
Robert Citrone, the Tiger cub who now runs one of the best-known macro hedge funds, is warning investors that the market moment they’ve been anticipating is at hand. “We believe we are in the midst of the market correction we have been expecting,” Citrone, founder of Discovery Capital Management, told investors in an e-mail obtained by Bloomberg. “It will likely persist over the next 3-4 months and be the largest correction since the 2008 crisis,” he said. The firm managed about $12.4 billion at the start of 2016.
Third Point’s Loeb: BOJ Move Will Be ‘Positive’ For Markets (Reuters)
Billionaire investor Daniel Loeb, whose Third Point hedge fund has recently pushed for change at Japanese companies, said on Wednesday that he approved of the Bank of Japan’s monetary policy move, but added corporate reform is still needed to help revive growth. The Japanese central bank announced earlier on Wednesday it would target interest rates on government bonds and Loeb said the move will have “very positive implications for the market.” Loeb, whose $16 billion Third Point fund has been investing in Japan for years, was speaking at the Reuters Newsmaker event featuring Japan’s Prime Minister Shinzo Abe.