Billionaire hedge fund manager David Tepper is short the euro (LeapRate)
David Tepper, the founder of hedge fund Appaloosa Management, said that he’s short the euro during a talk at the Robin Hood Investors Conference in New York City. Tepper, whose fund specializes in distressed debt, said he expects that the European Central Bank will need to expand its balance sheet by instituting more quantitative easing and further “loosening” monetary policy to stimulate the eurozone’s flagging economy. Early on Tuesday, news reports surfaced that the ECB is weighing whether it should start buying corporate bonds, sending the euro back to the downside after a brief respite. The pair last traded on Wednesday below the $1.2700 handle.
Cincinnati investors targeted for New York hedge fund (BizJournals)
A Cincinnati native who is the son of one of the local business community’s best-known CEOs has launched a hedge fund in New York. Daniel Barach, the son of former U.S. Shoe CEO Phil Barach, is targeting Cincinnati investors to put money into the fund, known as Turnaround Stocks L.P. “I’m born and raised in Cincinnati, and I believe I can help people make a lot of money,” Barach told me. “I have a lot of loyalty to my hometown. There’s a connection.” Barach has quite a track record. He ran a similar hedge fund – MLT Capital – for 11 years, building it into a $150 million operation before shutting it down when the stock market collapsed in 2008. Then, he temporarily retired.
Kyle Bass warns QE end will shake up markets (CNBC)
Central banks meeting next week will expose a huge divergence in monetary policy between several major economies, putting the macro environment in focus and weighing on foreign exchange, hedge fund manager Kyle Bass said Wednesday. The founder of the $1.7 billion hedge fund Hayman Capital thinks the Fed likely will taper its bond-buying stimulus to zero next week. The Bank of Japan, however, likely will announce it will do whatever it takes to prevent the world’s third-largest economy from heading into a major crisis.
Lone Pine Posts Gains But Remains Down for the Year (InstitutionalInvestorsAlpha)
Most of the hedge funds managed by Stephen Mandel Jr.’s Lone Pine Capital posted modest gains in the third quarter. However, they still remained mired in the red for the year. According to the Greenwich, Connecticut-based firm’s latest report to clients dated October 14, third quarter returns ranged from flat for the long-only fund, Lone Cascade, to up 2.7 percent for Lone Tamarack, its new long-short fund. Lone Pine told clients that both longs and shorts outperformed global market indexes in the most recent three-month period.
Herbalife Bull Is Back, More Bullish Than Ever (WSJ)
One of Herbalife Ltd. (NYSE:HLF) -6.19% most bullish analysts is back. He’s with a new firm, but he has the same optimistic views on the controversial maker of nutritional supplements. …Mr. Ackman has alleged the company should be shuttered and its stock price should go to zero. Herbalife has said it complies with all laws and regulations and welcomed the inquiry as a chance to clear its name. For his part, Mr. Ramey now predicts the investigation will ultimately lead to a settlement between Herbalife and the FTC in which the company gets a fine or sanctions, but won’t get shut down.
Sector winners since the dip (CNBC)