“Terrified”, “Hostile” Hedge Fund Managers Find Themselves Unable To Trade In Trump’s World…”Many hedge funds are loading up on cash”
by Tyler Durden
ZeroHedge.com
Feb 15, 2017
A decade ago, they were the masters of the universe, moving stocks and entire markets with a mere gesture. Now, adding insult to years of underperformance in central banker-planned markets, soaring redemptions and declining fees, America’s hedge fund gurus find their world turned upside down, trading on the defensive at the unpredictable whims of every Trump tweet. As a result, as the WSJ writes, “Many hedge funds are loading up on cash and sheltering their portfolios from the risks of an unknown future.”
In short, unable to find “an edge”, the “smartest people in the room” have decided to boycott the market – which makes new record highs every day – altogether.
The reason is clear: Donald Trump: “Wall Street’s early exuberance at the election of President Donald Trump is giving way to reticence and in some instances outright hostility.”
Billionaire hedge-fund managers and day traders initially cheered Mr. Trump’s surprise win, propelling major U.S. indexes to all-time highs on the hope of increased government spending, tax cuts and loosened regulation.
Such Wall Street-favored tax and economic policies, however, are taking an early back seat to Mr. Trump’s polarizing moves on immigration and a predilection for intemperate interactions with foreign powers and would-be congressional allies.
As a result, some of the most prominent names in the hedge fund world, and closely followed traders are warning in letters to their wealthy clients that all isn’t as rosy as it seems.
And, as the WSJ puts it, “some warnings are rather more colorful than others.”
The Rest…HERE
