VP & Sr. Portfolio Manager Jeff John reports 3,000 “underfollowed and underappreciated” companies within the small cap value opportunity set. Here, he shares how he whittles that to a more manageable number and how transitory events like a potential trade war and recent tariffs affect his strategy.
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Drew Angerer | Getty Images Information about Facebook stock shares is displayed on a monitor as traders and financial professionals work on the floor of the New York Stock Exchange (NYSE) at the closing bell, November 19, 2018 in New York City. A collection of hedge funds favorite stock picks including Facebook, Alibaba and Amazon are underperforming the broader equity market badly in the second half of 2018. After beating the market in the first half of the year, a basket of the most popular long positions at 823 hedge funds has lagged the S&P 500 by 7 percentage points since mid-June, according to Goldman Sachs. The Goldman Sachs Hedge Fund VIP basket is down about 9 percent since June. Hedge fund returns, portfolio leverage, and the performance of popular stocks have entered a vicious downward cycle, wrote Goldmans David Kostin. The average equity hedge fund is down 4 percent this year, according to Goldman. Funds saw their worst monthly performance in three years in October, down 2.35 percent on average, according to financial data company Preqin. Among the top names at hedge funds as of the end of the third quarter were the popular FAANG stocks, with Facebook and Amazon representing two of the top three largest positions, according to Goldman. Facebook , Amazon , Apple , Netflix and Alphabet have fallen sharply in recent weeks, with the group wiping out about $1 trillion in market value from their 52-week highs through Tuesdays close. The Technology Select Sector SPDR ETF is down more than 13 percent since the start of the quarter. The sell-off in technology has accompanied a wider pullback in the stock market. The S&P 500 is down about 8.5 percent since the start of October, while the Dow Jones Industrial Average fell 6.8 percent. The investment banks chief U.S. equity strategist pointed to the return of volatility and a slowdown in growth and momentum stocks for the lackluster performance in the second half. Managers, in turn, have pivoted toward more defensive sectors such as health care and utilities as the markets turned more volatile, Kostin wrote. Hedge funds rotated toward defensive sectors during the third quarter, lifting utilities to an overweight vs. the Russell 3000 for the first time since 2008, he added. Funds also added to positions in consumer staples while reducing positions in the info tech, communication services, and consumer discretionary sectors. Utilities and heath care have become so successful that some hedge fund managers have added the slower and steadier stocks to their portfolios, with names including UnitedHealth and electricity producer Vistra Energy making their way onto Goldmans VIP list. Health-care insurance company Aetna remained a top holding, with 43 firms listing the security as a top 10 position. Allergan , too, proved popular, with 15 hedge funds naming the pharmaceuticals company a top holding. The Health Care Select Sector SPDR ETF is up 7.8 percent over the past six months. Hedge funds are required to report their holdings 45 days after the end of each quarter. The filings often do not reflect the current holdings of the funds because the managers may have sold or bought stock in that 45-day window.
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Today we had a bearish bias in the index futures that means, "give me or short or nothing." And these biases are effective ways to maintain focus, reduce overtrading, and yes, even manage earnings volatility. http://www.SimplerTrading.com Raghee Horner #futures #forex #earnings #volatility --------------------------------------------------- Simpler Trading: Options, Futures, Fibonacci, Forex, Stocks, and More. Learn best practices and strategies for trading by joining the Simpler Trading community. --------------------------------------------------- Professional traders on staff at Simpler Trading: John F. Carter [Options, Founder and CEO of Simpler Trading] Henry Gambell [Options, Technical Analysis] Raghee Horner [Futures, Forex, & Cryptocurrencies] Carolyn Boroden [Fibonacci Analysis] @Fibonacciqueen Bruce Marshall [Options] Neil Yeager [Futures] David Starr [Futures: Elliott Wave] Eric Purdy [Thinkscript & tools] Darrell Gum [Tech & tools] Danielle Shay [Options] Jared Anderson [Cryptocurrencies & Futures] Allison Ostrander [Options, beginners] Sam Shames [Cryptocurrencies & Futures] Taylor Letterman [Cryptocurrencies] Jared De La Cerda [Options, beginners] Dr. John Clayburg [Options & Stocks] --------------------------------------------------- John F. Carter, a successful trader and entrepreneur, leads community members through live trades daily while explaining strategies, significant market opportunities, and indicators that work. Together, newbies and experienced traders alike share knowledge and experience, supporting each other in an active trading forum.
Views: 876 Simpler Trading
Subscribe to stay up to date with the latest videos ► https://www.sbry.co/suBiH Episode 37 - Why GE Could Be the Next Enron & How to Fix Corporate America Porter reveals why no major media outlet will cover his best-selling book, American Jubilee, which has sold over 50,000 copies in the last few months. Is the dirty math at General Electric about to get a lot worse? Porter has new information about dubious accounting practices used at GE that can potentially put the conglomerate in the same league as Enron. He offers a solution for corporate America that would immediately stop the crazy debt madness and financial shenanigans found at some major public companies. Dan Denning of the Bill Bonner Letter joins Buck and Porter to talk about the early days of Porter’s publishing business, why he recently traveled 3,000 miles out west looking for “bolt hole” communities, how he hates to disagree with Steve Sjuggerud, and what newsletters he’s reading these days for ideas and inspiration. The mailbag is filled with questions about Porter’s natural gas prediction, capital efficiency, and the Stansberry Alliance. One listener writes in to tell everyone how he was almost “Bucked” on a position in GE before he heard Porter’s analysis. Be sure to click here to never miss an episode ↓ SPOTIFY ► https://www.sbry.co/ufnNP GOOGLE PLAY MUSIC ► https://www.sbry.co/lkwhp ITUNES ► https://www.sbry.co/7OQ79 SOUNDCLOUD ► https://www.sbry.co/jHn5h STITCHER ► https://www.sbry.co/tEkL5 Check out NewsWire’s Investors MarketCast ↓ GOOGLE PLAY MUSIC ► https://www.sbry.co/dzzKq APPLE ITUNES ► https://www.sbry.co/GoCV0 STITCHER ► https://www.sbry.co/s86p1 ———————————— Follow us on Twitter ► https://www.sbry.co/p11ih Join our Facebook Community ► https://www.sbry.co/fMckK Check out our website ► https://www.sbry.co/wUAye Check out Stansberry NewsWire ►https://www.sbry.co/IhNeW Check out Health and Wealth Bulletin ► https://www.sbry.co/iHRmD Check out Extreme Value ► https://www.sbry.co/EvIiH ———————————— SHOW HIGHLIGHTS: 0:38 Porter tells Buck about his new status as a best-selling author, and theorizes about why the New York Times will never put him on their bestseller list. 4:00 Porter reads from Grant’s Interest Rate Observer regarding the Multi-Employer Pension Reform Act of 2014 that gives pension plans an avenue to reduce payments to their beneficiaries up to 50%. 7:18 What’s going on in the FBI? Buck breaks down the latest in the FBI’s alleged plans to take down Trump’s campaign in what could be a bigger scandal than Watergate, and why he’s still reserving judgement. 10:35 Buck makes a prediction if Democrats take Congress this fall: They will impeach Donald Trump. 12:43 Porter shares his own radical fix for our broken, circular-firing squad politics: Give citizens voting power equal to the taxes they pay. “Look at the history of our democracy since we went to universal suffrage – they’re not good outcomes.” 23:15 Porter picks apart the lie that ballooning CEO compensation is “just what the market bears out” and reveals why the situation with GE is about to get $20 billion worse. 30:22 Porter asks Dan which newsletters he’s reading these days and he tells you why he never likes to disagree with Steve Sjuggerud. Dan gives Porter a tip about a favorite new writer he’s reading that you’ve likely never heard of before. 36:49 Dan tells you about his recent 3,000-mile journey in the western US looking for “bolt hole” communities that you can move to in times of crisis. He found whole parts of America that are emptying out, but offering great opportunities in real estate and peace of mind. 40:09 There’s one recommendation that probably embodies his investing philosophy better than any other – Hershey – and Porter reveals what makes it so special. Dan shares the two qualities he looks for, and the investment that went up 5,000% after he recommended it. 49:26 Dan explains why history is of little help making sense of today’s markets where traditional asset class relationships don’t seem to be working anymore. Porter agrees and goes into detail on how the true barometer of financial excesses today isn’t in the stock market. 58:34 With a small amount of envy, Porter shares the findings from the full audit of Steve Sjuggerud’s newsletter recommendations, and how since inception of his letter in 2001, the average gain is 20.6% – a record that beats virtually every hedge fund and mutual fund, and doubles the S&P 500’s return. 1:06:02 Buck reaches into the mailbag and pulls out a question from Jim T., who asks Porter how he gets his prediction that natural gas prices will rise to $10 when fracking is already unleashing such a supply glut. Porter responds it all comes down to what the Chinese will STOP doing.
Views: 7021 Stansberry Investor Hour
Hedge funds are in a vicious downward cycle as their favorite stocks badly trail market Read more Any violation of policy, community guidelines, copyright law or business cooperation please contact directly by mail us.hotnews20 at gmail.com
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