Displaying items by tag: hedge fund

Wednesday, 22 December 2021 19:02

Hedge Funds Reliant on Rate Hikes

Hedge funds opened the floodgates and entered a firesale on treasuries in response to Powells pivot on inflation. JPMorgan said the selling demonstrates leveraged investors pivoting out of Treasuries. Hedge funds are continually shorting across the futures market, and are now hitting an annual low in U.S. 10-year treasuries futures. The only problem is the tapering hasn’t begun just yet and rate hikes are only in theory. This means hedge funds drastically need the Fed to follow through on a hawkish swing if they don’t want to get hung out to dry.


FINSUM: It would be extremely unlikely the Fed pivots on its tapering. The only way that's possible is if inflation was significantly below target the next one or two quarters.

Published in Alternatives

(New York)

Here is an interesting buy. Bill Ackman, found of hedge fund Ackman, has just taken a big stake in Nike (unclear how big). However, the activist investor does not plan to agitate for change, unlike he usually does, because he believes the company is already on the right path. The company is currently changing its strategy from selling its goods at wholesale to a nationwide network of “mediocre retailers” and towards a more consolidated model of selling to only very top stores. It is also trying to be more direct-to-consumer oriented by selling directly through its website.


FINSUM: Nike had been lagging the competition in terms of share price as it seemed to have lost its “cool” edge among the young. It also largely missed out on the athleisure trend. We always maintained it was a good buy and still think so.

Published in Eq: Large Cap

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