Hedge Funds Bagged 24.4% Return from Investing in Latin America
Latin America had reaped a 24.4% return for the year up to July 2016 for hedge funds invested in the region.
Hedge funds assets invested in emerging markets rose by $4.7 billion in the second quarter to end 2Q16 at a total of $189.8 billion.
According to a 13F filing, Third Point lowered its position in the Dow Chemical Company (DOW).
In 2Q16, Elliott Management’s sector allocation heavily tilted towards the technology (XLK), energy (XLE), and material (XLB) sectors.
According to a 13F filing, Elliott Management’s largest position reduction was in Interpublic Group of Companies (IPG).
Whirlpool (WHR) is Appaloosa Management’s top holding and it constituted 6% of its portfolio in 2Q16.
Appaloosa Management’s largest sale in 2Q16 was Southwest Airlines (LUV). It sold 0.88 million shares of the company.
David Einhorn is a big fan of technology stocks. He allocated major portions of the firm’s portfolio to technology stocks such as Apple (AAPL), EMC (EMC), and Yahoo (YHOO) in 1Q16.
The firm’s top holding is Yahoo! (YHOO), which represents 19.9% of the firm’s portfolio allocation.
Duquesne Family Office operates as an investment management firm. Billionaire investor Stanley Druckenmiller is the chair and CEO of the firm.
Janus Capital Management is the 25th largest investor in Microsoft, holding about 32.1 million shares worth $1.9 billion.
As of June 30, 2016, Janus Capital had removed Yahoo! (YHOO) completely from its holdings.
Soros Fund Management reduced its position in precious metals (GLD) and increased its position in the communication sector (VOX).
Billionaire investor George Soros, who said in April 2016 that gold was the only asset that could outperform in the current market environment, is now getting out of gold.
In 2001, when Federal-Mogul was undergoing a Chapter 11 bankruptcy, Icahn had invested in $1.1 billion in the company’s convertible bonds.
Icahn believes that Hertz has good potential value, provided it enacts certain changes. The company is already going in for a split.
Bill Ackman, CEO of Pershing Square Capital Management LP, has been shorting Herbalife (HLF) since 2012.
According to Rodman & Renshaw’s Raghuram Selvaraju, Valeant’s underlying assets are not fairly valued by the market and the company is capable of making a turnaround.
In August 2015, VRX stock was at its historic peak of over $250. It is now below $25, as the stock has lost over 90% in the past year.
“Allergan has a great pipeline,” said Icahn. For Icahn, this healthcare sector (XLV) firm’s stock appears to be undervalued.