‘We’ve Had the Bulk of the Gains We’re Going to Get’ in Stocks, Warns a Disciple of Julian Robertson (CNBC)
The stock market has basically topped out and won’t deliver the eye-popping returns that investors have become accustomed to in recent years, hedge fund manager David Gerstenhaber told CNBC on Monday. “I’m not predicting a bear market at this point. I want to be very clear about that,” said the Argonaut Capital Management president. “[But] you probably don’t get a peak of substance in the market until the end of the economic cycle is in sight.”
Carl Icahn boosts stake in Dell IPO Standoff (Reuters)
(Reuters) – Activist investor Carl Icahn reported an increased 8.3 percent stake in Dell tracking stock on Monday, as he looks to block a proposed plan by the computer maker to return to the public market without an IPO. Dell Technologies in July said it would pay $21.7 billion in cash and stock to buy back shares tied to its interest in software company VMware Inc. Icahn and other hedge fund investors have resisted the plan, saying the proposed deal massively undervalues the tracking stock.
Hedge Fund ESL Backs Sears’ Bankruptcy Move (Greensboro.com)
Hedge fund ESL Investments says it stands by Sears’ decision to file for Chapter 11 bankruptcy protection, though it would have preferred to avoid a court-run process. The hedge fund is run by now former Sears CEO Edward S. Lampert, who is also the company’s largest shareholder and has been attempting to keep the company afloat with his own money. An out-of-court resolution “did not prove possible”, ESL said.
Which Investing Style Is Right for You? (Money.USNews.com)
George Soros, inspired by the great 20th century philosopher Karl Popper, considered himself a philosopher first and investor second, deriving his investing strategy and his “theory of reflexivity” from Popper. He earned billions using it. Ray Dalio, founder of the world’s largest hedge fund, was obsessed with deconstructing the economy mechanically, discerning the parts and gears that made it move. That allowed him to make big bets on where the machine was going. That worked, too.