Monday, August 25, 2014

Goldman Sachs on How Hedge Funds Are Making Money In 2014: The Full Strategy Breakdown

From ZeroHedge:
As part of his latest weekly report, Goldman's David Kostin breaks down the full array of strategy "baskets" used by hedge funds at this moment to outperform the market in 2014. In a nutshell, the best performing strats right now involve betting on a high vs low tax rate divergence (perhaps because companies facing high tax regimes are soaring on hopes they will engage in a price-boosting tax inversion deal), and shorting BRIC exposure:
... on betting aggressively against high quality and shorting strong balance sheet names (thanks to the bond bubble which allows the worst of the worst companies to refinance in the current environment) while at the same time betting that companies will engage in aggressive stock buybacks and generate a return to shareholders (via dividends and general total cash)...MORE