Paul Tudor Jones Sees the S&P 500 Plunging 25% if Warren Elected, Jumping Another 15% on Trump (CNBC)
Billionaire investor Paul Tudor Jones believes the S&P 500 would plunge 25% if Sen. Elizabeth Warren clinches the 2020 election, but sees another 15% upside for the market if President Donald Trump wins re-election. Speaking from the Greenwich Economic Forum, Jones explained on Tuesday that an internal poll at his investment firm found that employees believe the S&P 500 could swoon to 2,250 if Warren comes out on top.
Hedge Fund CQS Says Brexit Creates Opportunity in Distressed Companies (Bloomberg)
Credit-focused hedge fund manager CQS sees distressed-debt opportunities spurred by Brexit and difficulties in the U.S. energy sector, even as low interest rates stymie many asset managers that invest in troubled companies. Brexit-fueled uncertainty is putting stress on everything from retailers and food processors to commercial real estate, fostering opportunities to create value, according to Ivelina Green, London-based CQS’s head of special situations. In the U.S., renewed challenges for energy companies — still struggling after the oil slump four years ago — are creating attractive entry points, Green said in a Bloomberg TV interview airing Tuesday.
Emerson Electric Names Activist Investor-backed Mark Blinn to Board (Reuters)
(Reuters) – Emerson Electric Co (EMR.N) said on Tuesday it named Mark Blinn to its board, bowing to pressure from activist shareholder D.E. Shaw, which has called for a breakup of the U.S. factory automation equipment maker. The New York-based hedge fund, which owns a more than 1% stake in the Ferguson, Missouri-based company, wants Emerson to split into two businesses – the industrial automation business and the climate technology-focused unit. The hedge fund has said the move could unlock more than $20 billion worth of shareholder value.
Ray Dalio Says the US will Have no Other Option but to Raise Taxes in Coming Years (CNBC)
Bridgewater Associates co-Chairman Ray Dalio said Tuesday that the U.S. will have little choice but to raise taxes in the coming years to offset its mounting liabilities and debts. Dalio, who founded the hedge fund in 1975, told CNBC from the Greenwich Economic Forum that the national debt, pension liabilities and health-care liabilities will ultimately have to result in higher taxes since defaulting isn’t an option.
Bill Ackman Is Back To Being A Real Tease (Deal Breaker)
No one is more fond of impishly taunting his own investors with allusions to big mystery investments than Bill Ackman. The Ack-Man takes real glee in getting on an investor call and getting real flirty about giving over a big piece of his portfolio to something that he isn’t ready to get specific about just yet. Whether it was the Hong Kong dollar or ADP or Berkshire Hathaway, Bill seemingly lives to keep all the normos guessing about the thing that only he can see. But in the last few years, that pleasure has seemed to wane a bit, replaced with something more urgent, more needy, more desperate.
An Exclusive Chat with Famed Hedge Funder Jim Rogers, Investing Advice from a Seth Klarman Disciple, and a Troubling Divergence in Stocks (Business Insider)
Dear Readers, Finding a market expert who’s calling for an imminent crash isn’t exactly a difficult prospect at this point. But how many of those people can say they racked up a 4,200% return in the market over just 10 years? Not many. Maybe just one, in fact. That would be Jim Rogers, the chairman of Rogers Holdings, who shot to investing fame in the 1970s and 1980s after a hedge fund he cofounded with George Soros blew the doors off the competition. The duo excelled at identifying and exploiting overlooked opportunities, and they rode the approach to great success.
Elizabeth Warren Blasts Navient, Student Loan Servicer Where Billionaire Leon Cooperman is Stakeholder (CNBC)
Democratic presidential candidate Elizabeth Warren lashed out at billionaire Leon Cooperman on Monday for his stake in student loan servicer Navient and stressed the importance of forgiving student debt. “I care about an entire generation of students being crushed by student loan debt – deferring their American dream because they can’t afford it,” Warren, the senior senator for Massachusetts, wrote in a Tweet. “I’m not afraid to stand up to the wealthy and well-connected.”
Technology can Act as a Growth Enabler to Help Hedge Funds Cope with Increased Margin Pressures (Hedge Week)
Punctuated equilibrium, a term used in evolutionary biology to describe long periods of little or no evolutionary change (stasis) interrupted by short periods of significant changes, is also applicable to the wealth management industry, according to a new white paper by SEI Investment Manager Services… The company argues that the wealth management industry is currently experiencing one of these punctuated events, experiencing significant evolutionary change. In the paper – Evolution in Asset Management – SEI identifies five trends, being released in individual chapters that are driving this change: fierce competition, vulnerable economics, emboldened investors, complex regulation and transformational technology.