Market Folly - Latest Comments in Let the Bloodbath Begin: Hedge Fund Redemptions

Re: Let the Bloodbath Begin: Hedge Fund Redemptions

marketfolly — Fri, 03 Oct 2008 11:41:32 -0000

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!

Re: Let the Bloodbath Begin: Hedge Fund Redemptions

Patrick — Fri, 03 Oct 2008 11:19:10 -0000

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.

Re: Let the Bloodbath Begin: Hedge Fund Redemptions

marketfolly — Thu, 02 Oct 2008 13:36:11 -0000

thanks very much, appreciate it

Re: Let the Bloodbath Begin: Hedge Fund Redemptions

Wall Street Survivor — Thu, 02 Oct 2008 13:31:20 -0000

This is a great article.