What we’re reading (8/4)
“A Wild Year For Markets Hits Trend-Following Hedge Funds” (Wall Street Journal). “Many hedge funds have weathered this year’s trade-war turmoil well. The one big exception: fast-moving quantitative funds that are meant to flourish in tough markets. These funds, known as trend followers, use complicated computer algorithms to spot patterns in asset prices, then ride them up or down. The investment approach has a reputation for protecting portfolios in crashes and delivering uncorrelated returns during calmer periods.”
“Greenlight’s Gains Vanish As Bearish Bets Backfire” (Institutional Investor). “Greenlight Capital has shed all of this year’s gains after suffering another large monthly loss. The long-short hedge fund headed by David Einhorn dropped 4.1 percent in July and is now down 0.1 percent for the year, according to someone who has seen the results. The firm declined to comment.”
“Palantir Tops $1 Billion In Revenue For The First Time, Boosts Guidance” (CNBC). “The artificial intelligence software provider’s revenues grew 48% during the period. Analysts hadn’t expected the $1 billion revenue benchmark from the Denver-based company until the fourth quarter of this year. ‘We’re planning to grow our revenue … while decreasing our number of people,’ CEO Alex Karp told CNBC’s Morgan Brennan in an interview. ‘This is a crazy, efficient revolution. The goal is to get 10x revenue and have 3,600 people. We have now 4,100.’”
“Airport Lounges Sound Luxurious. I Keep Getting Duped.” (New York Times). “There have never been more airport lounges. Yet there also have never seemed to be more lounges that are not worth the hassle. Many are forlorn. Many others are overcrowded; sometimes the lines for the lounges are the longest in the airport. Yet we all still fight to get in. Many of us will choose to fork over too much in credit card fees or commit to flying on one airline to gain entry to these spaces, because we still believe they offer a taste of luxury amid the stress of travel.”
“Eric And Trump Jr-Backed Manufacturing SPAC Files For $300 Million US IPO” (Reuters). “The special purpose acquisition company, a vehicle previously used by the family to launch firearms retailers and media firms, aims to merge with businesses headquartered or primarily operating in the U.S., it said in a filing. The SPAC will ‘play a meaningful role in revitalizing domestic manufacturing, expanding innovation ecosystems, and strengthening critical supply chains’, the filing added.”
