first, david einhorn dropped to hit november, poised its second losing year in the next decade.ichael platt says that he will return all outside all outside money instead of managing his own private wealth. he says that "everyone knows the landscape has changed, we want to position ourselves to be free betty: joining ourselves for moore, simone foxman. seems like the same tale when it comes to michael platt, so what went wrong? simone: it has been a bit of a slow decline for his oldest fund. it just hadn't made much money for a long. of time. -- long period of time. in 2008 that was where a lot of the assets came from. so, a lot of people rushed to throw their money into the fund. it didn't turn out to be as great as it was. the firmwide assets dropped from 37 billion to 8 billion. they kind of made -- this is and . guess a huge surprise i mean, he's a name, and it's a huge surprise if you look at someone who lost that much in assets over short amount of time, you have to wonder if it makes sense anymore. betty: exactly. you have seen blackstone -- or where theck rock strategy i

guys like david einhorn. also, chipotle shares continue to sink on e. coli fears.hat stock is down another 3%. how serious of an issue is e. coli for chipotle or you and your money. >>> you have got apple, alphabet which i still have a problem saying, aka google, microsoft and jpmorgan chase, they're all down. no surprise. we are back on "power lunch" right after this. >>> not everyone is making money on this deal. hedge fund titan david einhorn has been short on keurig stock. kate kelly is here on more. how bad is he hurting right now, kate? >> well, mandy, it's kind of a mixed bag. einhorn is still in the black on this short trade but by a lot smaller margin than he was as rendly on friday. he got in at an average price of $102 this time around. he's been short it in the past as well which pegs the placement at around may and it was shaping up to be one of his biggest winners this year, down nearly 50% as of late last week until this morning that is. a surprise announcement that the investment firm j.a.b. holding would buy keurig for a huge premium sent the stock

bill ackman (pershing square capital) worst fund year since 2004, and similar negatives from david einhorn and carlos slima7historic year, when all asset classes performed poorly poorlywhat's in store for 2016? $& anticipate 5-7% yields a7stay the course, remain versified, and tune-e-t the noisea7returns should be best leading up to november elections that does it for us here on the cbs 2 news at noon.our afternoon live at five.and you can see us right back herer tomorrow morning at 5 a-m. enjoy your afternoon. afternoon. surf, stream, download, and play on multiple devices at once, with centurylink internet. when bundled with alifying home phone plan. just call... ...right now. wanna see this as an action movie? [ deep voice ] get ready. 40 megs is only $20 a month. [ normal voice ] or d dma? [ melodramatic voice ] get up to 40 megs for $20 a month. [ normal voice] only from centurylink. speed may not be available in your area call now. cordes: st nurses are tough.h. they're problem-solvers. they like making things better. people don't have access to healthcare because they just can't aff

david einhorn's bad year just got worse.t puts the fund down more than 20% for the year in comparison, the s&p 500 is up about 1% this year. this likely ensures 2015 will be only the second negative year since he launched his firm in 1996. green lights returns have been hurt by bets on solar company sunedison and memory chip maker micron. we're heading out now with steve in paris and energy companies like this, green energy companies like this obviously not performing well. >> yeah. absolutely wilf. i think the point is made there very graphically. we're still at the front here on renewable energies and trying to workout a commoditized price with companies could make money and use solar and other renewables and basically not cost them the earth compared with hydrocarbons as well. this is someone i have interviewed before who is a pilot of solar impulse two and his colleague is also a pilot as well. but you get the business man and energy ne engineer title. you're flying this amazing plane with a wingspan wider than a 747. br

david einhorn for instance, he may have some powder that's try but we don't know about bill ackman fornstance, he was buying valiant still. >> and redemptions. so you think about -- making phone calls to these funds, there's no question they're lining them up for redemptions from january. so if there is a chase, a move to the end of the year, it's a chase -- >> i disagree. a lot of the investors with these guys have been with them for a long time and they're not going to be running for the door based upon -- it's not been a bad year. probably a bad quarter and maybe a bad half year. let me say something else. as a hedge fund manager one of the biggest issues you run into is not when you're down a little bit. it's when you don't catch the rally on the way back up. so you're saying does that mean they'll put powder in december no but first quarter especially if people think the market has some legs that would be the time these guys have to be back in the market. >> you have to be careful in risk management and job security. if you have money at some funds you better make sure that you ge

>> why twist the knife on einhorn?performances, up one, up eight. >> true, down 20. >> down 20. which i think orszag is good down 20, right? >> up 20. >> in between. >> he's up 20, give him a little. >> more top stories at this hour. cyber monday indicated high sales, and comp sales top 3 billion, and meantime, black friday sales declined in key categories, but total spending thursday and friday was a deep rise, spending per shopper 1.4%, and electronic consumer purchases dropped compared to last year. auto makers report november sales today. analysts there look for a third straight months with sales above the 18 million mark. that's never happened before. a mattress merger this morning. mattress firm is buying sleepy's, the two large estimate stress retailers representing 21% corporate share. a lot of deals over the years, private equity deals, buyout deals, they are merged then undone, i don't know. what happened to water beds? that's what i want to know, right? >> hard to get in and out of. >> there was a moment for

bill ackman is down 20%, david einhorn down 20%, so those are bad numbers. : who are the winners?rine: there are a number of passportt are up, like fund, millennium has pulled in $4 billion and are up about 9% or 10%. some funds are doing well and benefiting from the funds that are doing poorly. betty: thank you so much. catherine burton who covers the hedge fund industry. i want to get back to the mass shooting taking place in california. it is a developing story mark crumpton is on right now. a shooter or shooters went on a rampage today in san theardino, california, and second mass attack in the u.s. in less than a week. the shooting happened shortly before noon local time about 60 miles east of los angeles. it took place in your the inland regional center which serves people with development told disabilities. law enforcement officials said on twitter that they have confirmed between one and three suspects and were responding to reports of 20 victims. we are getting word from the white house that president obama has been briefed on this shooting by his counterterrorism advisor

einhorn is down, about, 20%. bill ackman as you mentioned it is trouble.ng about guys who took chances on specific stocks and piled a whole lot of money in them. >> correct. the federal reserve meeting what is your advice on how the quarter comes to a close. >> we think structured credit. colatealizeed loan obligations. liz: those sound scary to those watching. >> if you believe the housing market is doing relatively well. commercial real estate market does relatively well unless we have recession. you believe most of the pain in high yield and credit is caused by oil sector, all of those options should perform well with good cash flow and some price appreciation potential as long as u.s. economy avoids recession. liz: november jobs report comes out friday. jobs report always tends to gyrate markets do you invest around a labor report or is that a bad, bad idea? >> typically this part of the year is strong. we don't see why this year would be different. you mentioned comments from the fed recently. we think that is behind the rally today. markets love the

even if you think of david einhorn and greenlight capital, who has not had a good year, because of thetocks he has been invested in, on the long side, has not done too well. short betshat his have gone against him. an interesting dynamic at a time when people are looking for stocks to move up. always trying to gauge her face when it comes to different issues. i am feeling ready to go on vacation. no, i'm looking at places like brazil. carol: a trouble spot in terms of the emerging world. lisa: looking at mining companies, thinking, does this make sense? could you see a rebound next year? brazil has gotten pummeled. i'm sure there is a lot of economic uncertainty, a new finance minister stepping in, markets are not impressed, but it could change. still latin america's biggest economy. what are you watching this week, beyond your vacation? lisa: to see if there is any further turmoil in the markets based on the fed rate rise. carol: how about you? >> my vacation starts wednesday. carol: i am the only one working? thank you for being here. you are listening to the bloomberg advantage on b

because the guys that you talk about, so einhorn, whatever it was it was a long goal.hat market didn't do it either, and it's still wrong. >> look at my favorite example. >> jcpenney, target, these guys, are they better than 50/50? >> here's the thing. this comes -- >> unless you're really good, get it again and again and again and again and are a cut above, the other guys had a couple lucky shots in any given year, why assume past performance -- john paulson, has he been hot lately? >> no. so up and down it's hard to -- >> why believe any of them have the touch? >> well, what a hedge funds industry defender tells you, and i bring it up, a hedge fund by definition is an alternative investment, putting 5% or 10% in it, but not majority. it's noncorrelated, and its results, theoretically would be a down version of what the market does. 10% up in the s&p, the hedge fund up 5%. >> and combine activism with it, fill it up 4%, and say you do it, and you get another pop from that, and you're rigging, like a green mailer. >> people are known for safety. shuttering duquesne whe

bill ackman, david einhorn. their funds are down more than 40% this year.re are others who have done very well. exactly. were there strategies that just did not work, and should they be taking january to december is any kind of timeline at all? is that even relevant? : it is relevant for investors because they pay fees based on the performance of the too, and for the managers, a get paid and if they have lost money, they don't. -- they get paid and if they have lost money, they don't. cory: that crucial difference is a norm is for a fund that depends on money to keep their staff and managers incentivized to get lower salaries and get that big payout over the year. that is true. that is why some of these smaller funds have decided to close down this year. there are a number of more funds opening. managers are hoping they can be the ones that make money. vonnie: tell us the strategies that work. long-shortyes, some equity strategies did very well because there was divergent in the markets and people were able to bet against stocks that were doing poorly. many

billionaire hedge fund manager david einhorn's greenlight capital fell 5.2% in november.t is poised for only its second losing year in two decades. the losses bring the yearly dropped almost 21%, and its positions in consol energy and micron technology failed to pay off. more on these stories and others on bloomberg.com. anna: thank you, very much. guy: so sector stability is very much under the microscope. soon we will get the results of the bank of england's stress test. caroline hyde is here. let's look into what we can expect. if there is a concern, what is it? caroline: the concern is what does the record low borrowing cost to in terms of stimulating too much risk-taking in the banking sector. that is what mark carney will onep his bdi on -- beady eye this morning. has the government clamped down enough? unsecured lending. think credit cards. is there too much leverage in the consumer? does that mean, as you see in the third bullet, bank'capital buffers up again. zero, -- beenin because when times were bad the banks would lend more and keep the economy going, but whe

yearw people struggle this , some big names, like bill einhorns well as david at greenlight capital.t is tending to happen among the ones who have struggled this year is they have concentrated positions that have not worked out well. alix: one to the ones that have performed well say about 2016 in terms of what kind of year that may be? peggy: i think hedge funds across the board are saying it is a tough market for them the past several years because of liquidity and a volatile markets. again, they are saying they expect markets to be more .olatile in 2016 again, we've got the fed moving, potential interest rates moving more next year. that can be an opportunity where hedge funds can make big gains and provide value to investors. alix: all right, peggy, thank you so much. bloomberg reporter peggy collins. coming up next, what are the best mid-cap investments in the new year? ♪ carol: you are listening to "bloomberg advantage" bloomberg radio. we welcome everybody on bloomberg tv. also with me is matt miller of bloomberg television. manager has been beating all of his the past five ye

that you won't see investors pull from some of these funds down so much, whether it's pershing or einhornren't, at least not yet. >> i agree. it's a curious thing. two things on thachlthat. we hear people have not had a huge redemption problem, but i would like to see what the assets are in january or february when they track the decline in assets. it's hard to separate the redemptions from market losses but i wouldn't be surprised to see capital fall. we already saw that in the third quarter. that's one thing. i wonder if investors are saying we want to keep our money in to regain a high watermark or regain lost ground as opposed to take money out after a great year which did happen last year. >> that's the picture ackman is making in the let. >>> high yield bonds are having a volatile week with the fed set to raise interest rates this afternoon. will this add more pressure to the junk bond market? joining us now is michael contapolous head of high yield from bank of america. we have had some recovery in the market this week, yes? >> we have. the markets recovered a bit after last week's

mountain --reen ever since david einhorn came out swinging, they have lost their group. >> yes, thisl. $50 were trading around something a share, this is around $90 a share. are presenting themselves as a huge rival to starbucks. the saraht caribou and lee coffee company. they are enormous in the united states. stephanie: green mountain, in upe beginning, they had the kc model. but since everyone got in that space, they lost their specialness. so without a deal like this, they were struggling to have any growth opportunities. then there were people who said, it doesn't taste that great. stephanie: that is a problem. -- coffeel coffee who that doesn't taste good, that is a fundamental flaw. connoisseura coffee , but it didn't taste as good. is a 78%: this premium. this is a company that has struggled. , why? look at m&a what is so special? jeff: there is one main rival, starbucks. green mountain shares are down quite a bit. they probably wanted to get something closer to where they used to trade. david: it is a preemptive price. jeff: exactly. maybe there are others. david: let's go b

hall of fame legends, buffett had a terrible year, david einhorn, carlos slim.se are my three most favorite investors of all time and they all had bad years. but the investor listening to us right now, i want you to understand, 2008 was a terrible year in the stock market but bonds were still up 22%. but this year not one major asset class had a good year, and that's what's made it so difficult across the board. >> dennis, what -- so we know -- let's just put this year behind us. i know we have a day and a half. it's over in our minds. >> happy to. >> what of the asset classes you track and follow is likely to be the best performing asset class one year from today? >> oh, yeah, nothing like getting put right on the line. >> just throwing it right on the line. >> what we trade at harvest is primarily u.s. indexes and u.s. equities and that's where we feel the opportunity is going to be. we feel the u.s. is growing at a slower rate. we feel that's where the opportunity is going to be. commodities, i don't know. commodities are crops i always tell people. oil is a

david einhorn's main hedge fund is headed for a second losing year in almost two decades.unded greenlight capital more than 5% last month, is down with 21% this year. the pace of online spending slowdown on cyber monday. according to ibm, web-based sales were up 18% from a year ago, consumers started their internet shopping over the weekend when sales rose 26%. still, cyber monday remains the biggest online spending day. adobe estimates americans spent nearly $3 million. david: now to global go. we had to latin america, where brazil's gdp figures came in much worse than expected. in economy contracted 1.7% the third quarter, pulling the nation deeper into that recession. us from the sÃo paulo bureau. we got an overview of the numbers. tickets behind them. conditions are worse than anticipated. than 3%, nextmore year, more than 2%. why is that they expect recovery? paula: at this point, it sounds like optimism, because we are coming to the light of the tunnel. itches getting worse. last year, a brazilian senator was arrested, and he was the one negotiating fiscal measures i

one loser it appears this morning and we need to do more work on this, may very well be david einhornion against keurig green mountain for quite some time back in 2011. i think he originally closed it out in '14. he then apparently went back at that short again started shorting the stock at 102.08 more recently it looked like a great winner. of course you recall he's had a tough time of it this past year with returns that have been down close to 20% if not more for the year so this is not going to help his cause this morning. we'll talk more about this. >> he's up. you don't know -- >> we don't know. >> he's still making money. >> we're joined by jonathan, the analyst. good morning to you. >> good morning. >> you look at this transaction, does this make sense to you? >> it does. just because of the relatively inexpensive entry you get to 23 million to 30 million households depending on whose numbers you believe and how many people are adopters to this. that's the strategic asset. there's nothing that's more repeat habitual purchase than coffee pods and i think that's what the buyers s

bill ackman (pershing square capital) worst fund year since 2004, and similar negatives from david einhorn and carlos slima7historic year, when all asset classes performed poorly poorlywhat's in store for 2016?