Third Point’s Loeb Joins Dalio On ‘The Short Side’: “Companies Are Going Down”
by Tyler Durden
ZeroHedge.com
Thu, 05/10/2018
This is not a time to be rewarded for long market exposure…”
Those are the warning words from yet another billionaire hedge fund manager as expectations of further market disruptions loom.
A day after the largest hedge fund in the world shifts to a net short equities position, as Ray Dalio’s Bridgewater no longer “feels pretty stupid” about being out of US stocks; Dan Loeb’s Third Point puts his money where his mouth is and dramatically increases his short bets.
Billionaire Loeb wrote in his letter to investors last week :
Market shifts are inherently difficult to anticipate and when they happen, they do not ring a bell but they do blow a dog whistle, as we have said in the past. Our job is to listen carefully and to take decisive action when we suspect change is afoot. We believe that the increase in our short book and our reduced net and gross reflect what we are hearing.
And this morning, on an earnings conference call for Third Point Re., where he oversees investments, Loeb told investors:
“It’s a good time to have more balance on the short side,”
…adding that he sees more opportunities to find companies that will “go down or materially underperform the rest of the portfolio.”
The Rest…HERE
