“
“ Trump talking about the COVID-19 risk gave investors an incredible gift: It kept the markets resilient much longer than they should, and allowed us to ensure that our portfolio was positioned sensibly. ”
“
That’s Axon Capital co-founder Dinakar Singh, winking at the president and his handling of the coronavirus pandemic in a recent note to investors cited by Reuters.
Trump, of course, has taken on that role, acknowledging that he has had to be “an entertainer” to avoid creating “havoc and commotion” in a country with the highest number of infections and deaths in the world.
“We just never believed ‘what happens in China stays in China,'” wrote Singh, whose overseas hedge fund has about $ 1 billion in assets and has grown 30% year-to-date thanks to big bets on tech giants, stock care and Japanese companies.
Specifically, the fund capitalized the rallies at Google’s owner, Alphabet GOOG,
, Facebook FB,
Rye CNC,
Human HUM,
and Olympus OCPNF,
, while making profits from short bets on Gap GPS retailers,
and Kohl’s KSS,
.
Axon, as Reuters reported, has beaten the average hedge fund, which lost 3.5% in the first half. Singh said he was able to hedge earlier this year by “adding some protection against volatility,” a move that bogged down “performance in January and early February, but has helped since then.”
Whats Next? Sing, a former Goldman GS,
The stock picker offered a bearish perspective: “All investors should seriously consider buying ‘protection’ against the structural increase in interest rates.”
There’s no need for much downside protection in Tuesday’s trading session, with the DIA Jones Industrial Average DJIA,
pushing higher out of doors. The S&P 500 SPX,
and Nasdaq Composite COMP,
they were slightly lower, in the last control.
.
