How Brexit Could Hamper Trade Relations with the Eurozone
All major European indexes are showing nervousness ahead of the Brexit referendum. The global market is also waiting for the referendum results.
When the QE program ended, equities and the commodity market were regularly affected by the increased sentiment that there could be a rate hike.
The hedge fund industry has the most expensive money managers, and regulatory and distribution costs are increasing.
A high expense ratio with lower returns impacts the overall alpha of an actively managed fund.
In recent years, the performance of various mutual funds and hedge funds followed by an active fund management strategy haven’t been so impressive.
Laurence D. Fink of BlackRock expects consolidation in the hedge fund industry. In this series, we’ll explore Fink’s reasoning and look at the industry’s performance.
GLD has fallen 10.30% on a YTD (year-to-date) basis. Paulson remains the biggest investor in GLD. It’s the most popular ETF that bases its price on gold.
Nervousness stuck the gold markets, but John Paulson didn’t budge. He stuck with his holding in the biggest exchange-traded product backed by gold.
Billionaire hedge-fund manager John Paulson is one of the best-known gold bulls in the markets. The last time Paulson cut his gold holdings was in July.
Out of the total analysts surveyed by Bloomberg, 64.7% of analysts have a “buy” rating on American Airlines, ~35.3% of the analysts have a “hold” rating, and no analysts have a “sell” rating.
American Airlines’ traffic increased 5.0% YoY to 20.01 billion, and its carrying capacity increased by 2.7% to 24.30 billion.
American Airlines’ 2Q15 revenues fell by 4.6% YoY to $10.83 billion due to weakness in the company’s key markets. Analysts estimated that revenues would be ~$10.86 billion.
AAL trades at a price-to-earnings multiple of 5.16x, which is a considerable discount with its peer average and the S&P 500 multiples.
In 2Q15, most hedge funds that had significant exposure to American Airlines either lowered their stakes or kept their positions steady in the company. AAL’s shares lost approximately 26.5% in value.
This series covers institutional investors’ activity in airline stocks in 2Q15, focusing on American Airlines Group. The majority of asset managers were net bearish on airlines.
Of the 20 Wall Street analysts covering the stock, 13 have rated Southwest Airlines a “buy,” and three have rated it a “sell.”
Southwest Airlines’ traffic report for August saw growth in key indicators such as revenue passenger miles (or RPM) and available seat miles (or ASM).
Southwest Airlines (LUV) reported revenue growth of 1.9% year-over-year to $5.1 billion. That was below analyst expectations of $5.3 billion.
Over the last three years, Southwest has been able to grow both its revenues and earnings meaningfully, facilitated by the low fuel price environment and prudent capacity management.
Among hedge funds that made significant buys in 2Q15 was value investor Cliff Asness’s AQR Capital Management. It increased its stake in LUV by ~4 million shares to 9.7 million shares.