Another billionaire investor is rooting for Republican presidential candidate Donald Trump to win the Nov. 5 election and is positioning his portfolio accordingly. The call followed a similar prediction by former hedge fund manager Stanley Druckenmiller.
What’s in store in the political arena: “We believe the chances of a Republican victory in the White House have increased, which will have a positive impact on certain sectors and the market as a whole,” hedge fund Third said.・Point Founder and CEO Daniel Loeb said: This was stated in the company’s third quarter letter to investors.
The hedge fund manager said “America First” tariffs would increase domestic manufacturing, infrastructure spending and the price of certain materials and goods. He also said the potential for deregulation in the Biden-Harris administration’s aggressive antitrust policy will spark a wave of productivity and business activity.
“We therefore continue to increase certain positions that could benefit from such a scenario through both stock and option purchases and shift our portfolio away from companies that do not,” the hedge fund manager said. . A review of the Senate race shows that Republicans are likely to secure a majority, making a “blue sweep” impossible if Kamala Harris wins the White House, according to a hedge fund manager.
He warned of a “blue sweep,” which could theoretically lead to higher taxes, oppressive regulations, and societal headwinds.
growth.
See also: What are cyclical stocks?
Economic outlook: Mr. Loeb reassured investors on the economy. “On the economy, there are no signs of recession or slowing inflation, and real interest rates still need to fall,” he said.
The hedge fund manager also sees healthy consumer spending and strong levels of retail investment as supporting liquidity to maintain market levels. He said the setting lends itself to event-driven investing, adding: “The potential for risk arbitrage and corporate activity could usher in a golden age for this strategy.”
Third Quarter Winners and Losers for Third Quarter: Third Point Offshore Fund generated a return of 3.9% for an annualized net return of 13.1%. However, the fund’s third-quarter returns paled in comparison to the S&P 500’s 5.9% rise and the MSCI World Index’s 6.5% rise.
Loeb noted that the global market rally continued in the third quarter, but the rally widened in the quarter, with Magnificent 7 underperforming the broader market for the first time since the fourth quarter of 2022. Interest rate-sensitive and cyclical stocks outperformed the market. He added that he was looking at an easing cycle.
The fund’s rising and falling stocks are as follows:
gainer
Private Company R2 Semiconductor PCG Pacific Gas and Electric Company Subsidiary of PG&E Corporation Utility Vistra Corp. VST KB Home KBH Life Sciences and Diagnostics Company Danaher Corporation DHR
loser:
Bath & Body Works, Inc. BBWI Amazon.com, Inc. AMZN Advance Auto Parts, Inc. AAP Alphabet Inc. GOOG GOOGL Microsoft Corporation MSFT
Loeb also said his fund had initiated a position in Danish freight forwarding company DSV. “We believe that DSV can generate earnings of more than DKK 100 per share in 2027, and as one of Europe’s leading companies, we can expect significant upside,” he said.
SPDR S&P 500 ETF Trust SPY, an exchange-traded fund that tracks the performance of the S&P 500 Index, rose 0.25% to $583.78 in pre-market trading on Friday, according to data from Benzinga Pro.
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