Paul Tudor Jones, Who Called the October 1987 Crash, Predicts Inflation Surge, Bond Price Plunge (CNBC)
Paul Tudor Jones, the hedge fund manager who called the October 1987 crash, gave a stark warning about the financial markets. “We have the strongest economy in 40 years, at full employment. The mood is euphoric. But it is unsustainable and comes with costs such as bubbles in stocks and credit,” Jones said in an interview with Goldman Sachs sent to the bank’s clients in a note Wednesday. “With rates so low, you can’t trust asset prices today. And if you can’t tell by now, I would steer very clear of bonds. … Bonds are the most expensive they’ve ever been by virtually any metric. They’re overvalued and over-owned.” The hedge-fund manager blasted the tax reform bill and Congress’ budget spending bill.
Dan Loeb Tells Investors to Keep Eye on ‘Rosy’ Growth Outlooks (Bloomberg)
Dan Loeb said while he’s watching inflation and interest rates, the bigger concern is if investors are overly optimistic about earnings and economic growth. “The more pressing issue is whether the rosy assumptions that everybody has about earnings growth this year and next year will be met,” Loeb said Thursday on a conference call discussing results for Third Point Reinsurance Ltd., where he oversees investments. “I’m not saying they won’t be met, but it’s definitely something, given some of the recent economic data which tends to be noisy, we need to keep an eye on.” Equally important is examining “growth expectations,” he said. “I’m not saying that growth is a problem but it’s definitely an issue that we’re looking at.”
David Einhorn’s Hedge Fund was Crushed – Again – in February (CNBC)
David Einhorn‘s Greenlight Capital suffered another round of losses in February — extending the hedge fund’s decline in 2018 to more than 12 percent. Both the main Greenlight Capital fund and the Greenlight Capital Offshore fell by 6.2 percent in February, according to Einhorn’s monthly update to investors, which was obtained by CNBC. Greenlight Capital and Greenlight Capital Offshore declined by 6.6 percent and 6 percent, respectively, in January.
Pershing Square Holdings Plans $300 million Buyback (Reuters)
BOSTON (Reuters) – Pershing Square Holdings plans to buy back $300 million worth of its own shares, the company said on Wednesday after Dutch regulators threw up roadblocks that prevented billionaire investor William Ackman from making a tender offer himself. In January, Ackman, who runs hedge fund Pershing Square Capital Management, announced plans for a $300 million infusion into the publicly traded company, which is listed in Amsterdam and London. The move was aimed at reducing the discount to the net asset value at which PSH’s public shares are currently trading. Now the company itself not Ackman will be buying the shares.
Former Hedge Fund Manager Whitney Tilson Puts His Kids’ College Savings Into Just Five Stocks (Bloomberg)
Former hedge fund manager Whitney Tilson is confident enough in his investing abilities that he’s included just five stocks in his children’s college-savings portfolios. In an email last night, Tilson outlined his strategy for the accounts: 50 percent in Berkshire Hathaway Inc., 25 percent in real estate company Howard Hughes Corp., and 25 percent “evenly split” among Amazon.com Inc., Alphabet Inc. and Facebook Inc. (or three of the five members of FAANG). He even posted new slide presentations to further explain his theses on two of the stocks.