David Tepper: Fed Is Done Supporting Stock Prices, So Cash Is ‘Not So Bad’ As An Investment Now (CNBC)
Hedge fund titan David Tepper said Thursday the Federal Reserve is sending the market a message, and it’s not a good one. A day after the Fed raised interest rates for the fourth time this year, the influential investor made the following points in an email to Joe Kernen and CNBC’s Squawk Box: “1. Powell basically told you the Fed put is dead. 2. Everyone is tight. Chinese money growth plummeting. ECB cutting the last of QE. And Fed still in tightening mode. 3. The net biggest issuance of Treasuries and worldwide fixed income is coming next year. Something is going to get crowded out. Bonds stocks etc. 4. Oh and there is this trade war question. I think we should be having a fight with China on different issues. But it is not conducive to confidence. Freezing some worldwide activity. 5. Cash is not so bad.”
Soros Fund Is Cutting Back on the Bets That Made Its Founder a Billionaire (Bloomberg)
Soros Fund Management has reduced most of its macro wagers, moving away from the strategy that made George Soros a billionaire — and inspired a generation of traders who looked to profit from big moves in currency, bond and commodity markets. Dawn Fitzpatrick, who joined New York-based Soros Fund Management as chief investment officer in early 2017, has been cutting the strategy over the past year, citing fewer opportunities.
Hedge Fund Pain Compounded as Surprise Tax Hit Awaits Investors (BloombergTax.com)
A surprise tax blow could be looming for investors in hedge funds such as Point72 Asset Management. President Donald Trump’s tax law curbs the coveted deductions that most businesses were allowed to take for the interest they pay on loans. During the tax overhaul debate, private equity firms were the fiercest critics of the provision, arguing it would change the calculus for their deals that often rely on debt.
How Activist Investor Paul Singer Made His Billions (Bloomberg)
Aggressive, tenacious and litigious Paul Singer may be the most feared investor in the world by hedge fund rivals, companies and even countries. This is how he made billions through activist investing. (Video by Tom Gibson) (Source: Bloomberg)