Market Folly: Let the Bloodbath Begin: Hedge Fund Redemptions
Wall Street Survivor
· 1 year ago
This is a great article.
marketfolly
· 1 year ago
thanks very much, appreciate it
Patrick
· 1 year ago
Wonderful post. I am watching the Ag stocks plummet and it's so clear that the "hedgies" bet big on them. Of course, MOSAIC's earnings didn't help the situation.
marketfolly
· 1 year ago
thanks. yea, no joke. the fundamentals on POT for instance still are amazing given they have pricing power due to limited supply and strong demand. but, as you've said, its very clear that this was a momentum name piled on by numerous funds. and now we're seeing the unwinding of that.
estimates on the ags have been run up so high now by the analyst community that even the slightest of misses will cause the stocks to come spiraling down, as evidenced by MOS's quarter. if i was a straight fundamental/value guy, i'd be buying the ags. but, since i'm not, i won't haha. gotta watch the technicals and the institutional movement... they control the capital. risk/reward has become so skewed with fund redemption/liquidation risk, that the fundamentals aren't even worth it anymore!
All Comments
estimates on the ags have been run up so high now by the analyst community that even the slightest of misses will cause the stocks to come spiraling down, as evidenced by MOS's quarter. if i was a straight fundamental/value guy, i'd be buying the ags. but, since i'm not, i won't haha. gotta watch the technicals and the institutional movement... they control the capital. risk/reward has become so skewed with fund redemption/liquidation risk, that the fundamentals aren't even worth it anymore!