This star hedge-fund manager says some major tech names are now value plays, as he shorts one meme-stock favorite Stocks are on the rebound again, at least that’s the vibe from futures.
That’s a day after Federal Reserve Chair Jerome Powell confirmed to lawmakers, what markets already knew — that a soft economic landing might be tricky while taming the inflation beast.
Along with average investors, hedge funds have had a rough start to this year. Managers were down about -0.56% in May, outperforming the Nasdaq by 1.49%, but trailing the S&P 500 SPX, -0.13% by 0.57%, according to the Eurekahedge Report.
“We don’t think we can say bonds are a value play,” and that’s opposed to a couple of tech names that they reluctantly shared. “This doesn’t mean if we enter a recession, there won’t be a big bond rally, but in terms of the things we compare yields to, bonds are considerably less disastrous. But that is damning with faint praise.”
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