Are hedge funds the true smart money?
- The study examined ownership data or 13-F quarterly asset management disclosures of active mutual funds and hedge funds – which have consistently owned 35 per cent and 5 per cent of the United States share market over the past decade.
- The study then examined relative ownership of indices and factors to determine the stocks that mutual funds and hedge funds either invested in or shunned.
- Some sectors of the market such as the health care and consumer discretionary sectors are driven by more stock specific factors and hedge funds were able to outperform.
- Real estate was an anomaly as hedge funds delivered outperformance even though stock returns tended to a function of broader factors.
- The paper's lead author Paul Winter explained that since most mutual funds are subject to tracking error limits, their "views shrink" limiting their ability to deliver returns that are materiality better than systematic stock picking.
Tesla's stock surge makes it the most valuable global car maker
- Tesla's ever-widening base of shareholders have lifted the market value of the California-based car maker to pole position, knocking Toyota into second place.
- In New York trading overnight, shares in Elon Musk's electric car company rose 3.7 per cent to $US1119.63, giving it a market capitalisation of $US207.7 billion ($298 billion).
- Key to Mr Ives' optimism is demand for Tesla vehicles in China, and rebounding deliveries in the US, in the past few weeks.
- Bespoke said in a note this week: "There have been years where Tesla's stock has been dead money.
- Despite Elon Musk's jawboning, investors continue to push the electric-car maker's shares ever higher.
- Trade surplus of $9 billion forecast for May. Australian shares are set to open higher, bolstered by further gains on Wall Street.
- The Australian market rose on the first day of the new financial year after banks found some buyers.
ASX to rise; Nasdaq at record; Fed wary of yield curve control
- Same store sales results for the last six full weeks from May 18 to June 28 were up 21 per cent in its Ripcurl stores and 12.5 per cent higher for its Kathmandu stores, with strong contributions from online.
- Washington | Federal Reserve officials have cast doubt over the use of so-called yield-curve controls adopted for the first time by the Reserve Bank of Australia as the COVID-19 crisis erupted, saying it conflicts with government debt management.
- Members of the Fed's open market committee discussed use of yield targeting controls (or YCT) at their two-day policy meeting last month but publicly gave the idea a largely cool reception.
- Minutes released on Wednesday (Thursday AEST) of the Fed's June meeting said many board members believe there's no need for yield-curve control because their own systems for broadcasting "forward guidance" were already strong enough.
Lincoln cancels the Continental again because the US is hooked on SUVs
- Lincoln is ending production of the famed Continental sedan at the end of 2020, just four years after reintroducing the vehicle following a 14-year hiatus.
- As Automotive News first reported, Lincoln will continue to sell the car in the US and Chinese markets into next year.
- Lincoln has long been rumored to be interested in building vehicles in China but would not say if it plans to shift production of the Continental there.
- Automakers like to say they’ve shifted their lineups to feature more SUVs and trucks because consumers prefer the higher ride height, the extra cabin space and added utility, and the ease of ingress and egress.
- And those things are true, but these companies also make far more money on each SUV sold than they do on sedans.
ASX to open higher, Wall St advances
- Japanese shares ended lower on Wednesday as the Bank of Japan's quarterly corporate survey showed business mood dropped to the worst level in 11 years, while the continued spread of COVID-19 cases in Tokyo also sapped risk appetite.
- The Hong Kong stock market was closed on Wednesday for Hong Kong Special Administrative Region Establishment Day. The US dollar retreated in choppy trading, as generally solid US economic data and improving European numbers diminished its appeal as a safe haven, though the currency's outlook remained upbeat given renewed risks posed by the novel coronavirus.
- Australian shares rose on the first day of the new financial year after banks found some buyers, as investors cautiously held out hopes for an economic recovery.
- Global recovery hopes were given a boost on Wednesday after China's latest June Manufacturing purchasing managers' index surprised expectations.
$240 Billion Pension Fund Just Issued a Grim Warning About the Stock Market
- One of America’s largest pension funds is planning to underweight stocks in the second half of the year, a sign that institutional investors are growing weary of the recovery.
- Christopher Ailman, the chief investment officer for CalSTRS, believes nothing is justifying the stark market’s absurd second-quarter rally.
- We’re going to be underweight equities going into the second half of the year, but not substantially because that rise in April, May and June really hurt if you were underweight.
- Ailman referenced the rise of the so-called stay-at-home trader to explain the absurd rally equities saw in the second quarter.
- Correlation between the Fed’s balance sheet and the stock market reveals a disturbing trend for equities.
- U.S. stocks declined 6.2% between June 8 and 21, right around the time the central bank’s balance sheet stopped expanding.
A Tesla Stock Split Won't Do Much - Except Hoodwink Robinhood Traders
- That’s because CEO Elon Musk tweeted apparent support for a suggestion that the company should execute a stock split.
- That’s a far easier entry point for retail investors to buy entire shares, compared to the old anchor of $1,100.
- At the same time, stock splits make it easier for long-term investors to take partial profits on a position and rebalance their portfolios.
- With Tesla’s valuation already at that of a company that sells over ten times as many vehicles each year – and does it profitably – getting more retail interest in shares right now is the last thing the company needs.
- The only thing a split will do is change the price of the stock enough to entice more retail traders into the trade out of fear of missing out.
The rise and fall of Magic Hat Brewing: a fascinating story of building a brand
- Brewed in 2001 for the annual Night of the Living Dead Halloween party that the company used to throw at its brewery — originally in Burlington and later in South Burlington — the ale featured a piece of raw garlic in each clear bottle.
- While the company's eight-pointed star — a dingbat in its logo between "Magic" and "Hat" — has fallen over the years, especially among beer enthusiasts in its home state, it was once among the most successful craft breweries anywhere.
- When he and Johnson founded Magic Hat in 1994, there were just a few production craft breweries in the state, most notably Otter Creek Brewing, Long Trail Brewing and Catamount Brewing.
- But for New Englanders, the annual Magic Hat Mardi Gras parades in downtown Burlington were the company's defining showcase, in more ways than one.
Twitch breaks records again in Q2, topping 5B total hours watched
- Twitch had already broken viewership records in the first quarter of 2020 amid coronavirus lockdowns, surpassing 3 billion total hours watched in a single quarter for the first time.
- According to a new report from Streamlabs and Stream Hatchet, Twitch saw a massive 62.7% increase in hours watched from Q1 2020 reach 5 billion hours watched in the second quarter.
- Twitch also broke records for hours streamed, unique channels and average concurrent viewership in Q2, the report found.
- YouTube Gaming Live also saw a 19.1% increase in hours streamed in the quarter to reach 16.9 million and unique channels grew 22.7% in the quarter to 1.1 million.
- But hours watched on the service grew 48.5% quarter-over-quarter to reach 822 million; hours streamed hit 6.1 million; and unique channels reached 203,554.
Daily Crunch: Tesla becomes the most valuable automaker in the world
- Tesla hits a financial milestone, Discord is now valued at $3.5 billion and we unpack the 👁👄👁 phenomenon.
- Here’s your Daily Crunch for July 1, 2020.
- In 10 years, Tesla has gone from public market newbie to the most valuable automaker in the world.
- The electric automaker had long since passed the valuations of Ford and GM — and in January, it became the most valuable U.S. automaker ever when its market capitalization hit $81.39 billion.
- Still, a few automakers remained ahead of Tesla globally, until today.
- Tesla shares popped this morning, and the company’s market cap now stands at nearly $208 billion, surpassing Toyota.
- These “phase I” projects receive up to $125,000 to help bring new technologies to market.
- The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories.