enough is enou:h. hedge fund is disgusting. enough is enough- i'm — hedge fund is disgusting.ting. enough is enough. i'm going to give - hedge fund is disgusting. enough is enough. i'm going to give my- enough. i'm going to give my ersonal enough. i'm going to give my personal opinion. _ enough. i'm going to give my personal opinion. i— enough. i'm going to give my personal opinion. i don't- enough. i'm going to give my personal opinion. i don't like| enough. i'm going to give my. personal opinion. i don't like it one personal opinion. idon't like it one lrit— personal opinion. i don't like it one bit and _ personal opinion. i don't like it one bit and hope it doesn't happen. the ramifications of this, i think, be talking — the ramifications of this, i think, be talking about _ the ramifications of this, i think, be talking about in _ the ramifications of this, i think, be talking about in years - the ramifications of this, i think, be talking about in years to - the ramifications of this, i think, i be talking about in years to come. that is at 8:30pm. ican i can tell you, it

hedge funds as well just to put things in perspective, the median hedge fund returned last year was 128% obviously, whether you like it or not, it attracts a lot of institutional players coming in. when you look at people investing in crypto, you look at crypto hedge funds, 84% of those today are individuals and family offices. so we still have a long way to go as we start seeing foundations, endowment, sovereigns, pensions so, again, we're at the very, very beginning stages of institutional factors and factors like you mentioned playing a big role. >> people with money are drawn to assets that are going to make more money that's what's happening there. we're going to leave it there. thanks for joining us on street signs. the crypto leader from pwc. >>> also coming up on "street signs," it could be the end of an era with israel with benjamin netanyahu potentially being on the way out. we'll be right back. >>> welcome back to "street signs. these are your headlines eu markets search for direction following a broad pullback in asian equities as chinese growth eases. the oecd boosts it

lisa: hedge funds. romaine: are we blaming hedge funds again?isa: isn't that what you are trying to go for, tom? that hedge funds are going to have a bad weekend? tom: what is kinsler going to do -- what is gensler going to do? it happened once. again? lisa: you have this reddit crowd, folks seeing individuals should be allowed to trade, and others saying you should have more precautions. if they are winning, it is hard to make the case that the sec on the government should protect them. romaine: let them make their money. my barber told me he was all over amc, and i was like, are you sure? then the stock continues to rally. let them become a tom. they are the people -- let them be, tom. they are the people. tom: jon from coventry just emailed in and said do a data check. the vix at 16.73. romaine: you're looking at euro-dollar, $1.2181. you talk about all the uncertainty in washington. 1.60% on your tenure yield. go back 30 days from where we are today, that is pretty much where the tenure yield was then. go back 45 days, that's where it was, s

fund exposure, available edges of hedge fund leverage may not capture important risks. that's why x are losing billions of dollars because there was not enough transparency. jay powell talked about the frothy stock market, at the payroll last week after the pressure. but he said this is manageable. let's start talking about bond tapering, he sees financial assesses, he talks about pulling back on some of that quantitative easing. rishaad: e-commerce is predicting one million jobs to the u.s. economy last month, getting clues from that in the increase in payroll as well. they claim the jobless benefits, how well is the fed and all this? >> these numbers are very impressive, aren't they? look at jobless claims, who claimed unemployment benefits hitting a pandemic low, a drop of almost 100,000 new claims for jobless benefits. just under 500,000, that is a post pandemic low and of course they peeked around 15 million. that's a plus. unemployment, were showing you the chart, the blue line is the weekly claim and white line is the continuing claim. in both instances, it is de

big tech underperformed to the overall index so not onlys did hedge fund profit -- only did hedge fundsy were also likely behind it. all three of stocks saw their positions reduced by these hedge fund managers. we do not know if this is the reflationary trade about it is a clear thing that happened to stocks that were very popular this time last year. one criticism we have heard from test live from a well-known hedge fund manager of big short fame. on twitter in december he talked about a short position. we got what he did in the first quarter of this year. he shorted tesla. it we do not know when he would have exercised to these, but we can bet he did make money given the first quarter for tesla was not a good one. anna: anna: that is -- anna: that is what they hedge fund sector thinks of tech right now. what about cyclicals? >> not exactly a cyclical back. he added some to a gold company but he cut positions in these three banks. he has been trying to exit wells fargo for some time now so he leaves all these three. warren buffett did power for their into bank of america. this is very

the reason it is important and affecting the efficacy of the hedge is that tells you how convex a hedge it is. even in these days when the market is down a couple percent the way it was last week, either bonds are flat were up a little bit. they're not giving you that big movement that made them such an efficient hedge the way they were a couple of years ago. that is a big change. we don't talk about that a lot. we talked about bitcoin and the fed. if you're building a portfolio, the degradation efficacy of bonds as your primary hedge is a big deal. jonathan: your the first to mention of this program. russ: serves me right. jonathan: are you still nursing the cash position? russ: we do have the cash position. it is the flipside of that. everyone has a volatility. in the absence of duration, need other hedges. part is cash. there are others as well. there's fx pairs. in a world where you're not getting that convection duration to hedge, will run with more cash. jonathan: thank you. russ koesterich blackrock. portfolio manager. just a conversation about the substitution for duration, time

caroline: so much for the inflation hedge. we thank you so much. all things crypto. we are going to be talking about it even more coming up. have our next guest saying we are on the cusp of the regime change. this is bloomberg. ♪ caroline: today, we are focused on the rally in the markets to start this week. monday giving us a fresh reason to be buying. what about the inflation fears we were wearing about last friday? joe: you got to look at the big picture because we can talk tech has been weak lately or whatever. if you want to look at a chart that goes up into the right and is almost never stopped, forget about the last couple weeks. here are 10 years of the qqqs. that is a very attractive chart. caroline: who needs crypto? joe: who needs everything else -- anything else at that line continues to go up. for more insight, ariel investment's chief investment officer is here. thank you for joining us. there is always going to be a little noise, but this chart of tech going up into the right for a decade longer, can they be sustained? >> no. i think today, we have see

_ have landed in a few metres away in the hedge and i have landed in a few metresj away in the hedgeer have seen it, _ away in the hedge and never have seen it, so _ away in the hedge and never have seen it, so many- have seen it, so many unbelievable - have seen it, so many- unbelievable coincidences. these _ unbelievable coincidences. these two _ unbelievable coincidences. these two meteorite i unbelievable coincidences. i these two meteorite allowance to look at them in conjunction. the fragments of the winchcombe are exceptionally rare. it is from something called a contract, the first one found in uk. ~ . , contract, the first one found inuk.~ . , , contract, the first one found inuk. . ,, , in uk. winchcombe is very secial in uk. winchcombe is very special because _ in uk. winchcombe is very special because it - in uk. winchcombe is very special because it is - in uk. winchcombe is very special because it is one i in uk. winchcombe is very| special because it is one of the most pristine materials we can study and this particular case, we saw it fall and we can watch that viable

closing cold water on the recent bounceback >>> showdown in houston, on whether to get into one big hedgeund and dump four board members in the future. >>> diamond, morgan, solomon and more big banks responding on capitol hill, defending their response to the global pandemic is the inflation trade unraveling already could big moves in commodities are signaling all-time highs? they may already be at an end. >>> and your rbi, just 11 stocks, goldman sachs says hedge funds and mutual funds love right now, the list, the names just for you it's wednesday, may 26th, and this is "worldwide exchange. ♪ >>> well, good morning, good afternoon or good evening, welcome from wherever world you may be watching. i'm brian sullivan, it's 5:00 a.m. that's early here's now the markets are setting up their day stock futures they are higher once again right now, could be another good day in the street of dreams, dow up 87, and the dow and russell 2000 did break a streak on tuesday, a fairly new day today, volume was down, still, we are seeing futures high. overall, it has been a pretty rough month of may for

alix: do you need to hedge it? how would you do that?g: we think most portfolios are too exposed to long-duration assets were cash flows are very far in the future, and places that require continued liquidity. portfolios won't be too harmed by a loss in liquidity. basically, there's a lot of cash flows available that are more attractive than the bond yield, but you need to hedge them with bonds. it traditional portfolio would think of you want to belong bonds, but in this world, you've really got to hedge against the stagflationary environment where rates are rising, but growth isn't that great. to do that, you really to make sure you are holding cash flows hedged with bonds. that is the opportunity fed policy is giving you right now, cash flows that are better than bonds, but they are extremely vulnerable to a rise in bond yields. guy: bill dudley is being very prolific writing for bloomberg opinion over the last few days. he's very much of the view that the market is underpricing the upside risk on the u.s. 10 year. the 10-year treasur

when you have a lot of call volume, dealers have to hedge that. they have to buy some of the underlying stock to hedge back to neutral. the contracts are all short dated weekly. we had a bunch of options expiring get bought today. the shorter the contracts, the higher the convexity, so they have to buy more as they get closer to being in the money. that was part of the impact. we saw a record call volume day for amc. it broke that record today. you saw 2.4 million calls get traded. that was it not enough to keep the stock moving up. joe: options go banana, pretty wild. amc was up 38% today. it did close negative. we saw the coins fall, apple, tesla fall, so starting with exuberance, but ending on a down note. >> i was trying to get to the bottom of that. i spoke with one person about the incredible call volumes. what is going on? it could be that we're heading into a long weekend. day traders is an eternity on that timeline, so some people could be closing out their positions. maybe they are not as enthusiastic in this stretch. caroline: bitcoin w

haidi: we started talking about inflation hedges, is bitcoin a viable inflation hedge for you right nowbe a struggle. when you talk about inflation hedges, the real bond yield challenge, gold seems to serve that purpose, but with bitcoin, there's not a strong correlation between golden bitcoin. we don't see the relationship between the two. if you look at cryptocurrencies like bitcoin, we see more relationships with liquidity and sentiment, so it may have its own place, as an asset class, but for a direct hedge against inflation through the channel of real bond yields, i prefer gold, because it is much more proven, that relationship. >> it is always great to have you. coming up, ambitious plans to change the makeup of electric vehicle batteries, why would could be a successor to lithium ion. this is bloomberg. ♪ this is bloomberg. ♪ >> this is "bloomberg daybreak: asia." president biden would delay a ban on certain chinese companies set to take effect on may 27 by two weeks, so officials can clarify trump era policies banning investments in companies owned or controlled by the military.

>> for hedging consider put spread callers. >> that does it for us here on "options action.day at 5:30 p.m. eastern time. don't go anywhere though "mad money" with jim cramer starts right now have a great weekend - [narrator] the following program is a paid advertisement for nuwave oxypure smart air purifier sponsored by nuwave llc featuring deborah norville, an award winning journalist and new york times best selling author. - coming up, we'll learn about the nuwave oxypure smart air purifier. we'll hear from an expert who says, this isn't just an air purifier, but an important tool to protect your family so you can breathe easier during these troubling times. - [narrator] as you're watching tv right now, take a deep breath, how clean is the air you just breathed? the air in your home may look clean to the naked eye but look closer,

i'm going to join my colleague chris hedges in just a minute he's written interesting call him about how. president biden may be fooling many people in fact he warns don't be fooled by president biden you're going to look forward to that conversation that's coming up in just a little bit but 1st i want to catch you up on something else that's going on right now and this has to do with that situation we've been sharing a bit about the south china sea so many different countries have been suddenly interested in doing military exercises there and now there's a new batch japan apparently is joining australia and france with the united states to conduct military exercises in that part of the world the obvious signal that they're sending to china is don't you dare try and push us right there countering china here's archies alex behind a bitch with this story. western allies have picked their common threats of the day and china is at the top of the list be committed to working together to take on the challenges from china and on issues like the east china sea the south china sea as well as

hedge fund four-week average flows have hit a record low, they say hedge fund selling has reached extremee retail clients have been net buyers for the tenth straight week. so that's the natural, okay, you've got the so-called smart mo money versus the rest of us just trying to make it, get by. one is selling extreme, one is buying for the tenth straight week steph, who is right? that's what everybody wants to know who is right >> i think there's opportunities everywhere in the market you have to actually put it into context though hedge funds can move in and out of stocks and sectors and the markets and various different parts of the regions of wherever they want to be in stocks and bonds, wherever they're focused on so they have a much shorter time frame in my opinion, and they do a lot of hedging as well so you just don't have the full, complete story i think the retail investor, i think they're very smart and i think they're longer term in nature i know for me and the way i invest, i'm much more longer term in nature i can get in and out, i can be tactical on a couple of names, but i d

looking for a hedge against the devaluation in the dollar.s would not change that thesis of course. there will be other investors who have a much shorter term horizon. they view this as a risk asset, and they may be selling or forced to sell. matt: i have spent years and years interviewing very famous investors. john berry abbvie already is one of the most famous value investors who always had a place for gold. i think he was always vote -- always devoting 5% or 10% of his portfolio to the shiny metal. are you seeing investors adopting bitcoin in a similar fashion? martin: yes. we -- starting about a year ago, institutional investors, family offices, starting to allocate a percentage of the liquid portfolios into bitcoin. they are looking for uncorrelated returns and something that has scarcity value over the long-term. there is a couple of things that have changed in the last six months. that are probably worth talking about. matt: please do. please expand. martin: yeah. so first, it is not just bitcoin anymore. over the last six to 12 month

otherwise we would simply unwind our positions, we're trying to look for a way that we can put on a hedgeery little options premium, and that's what we're trying to do when we put on a zero cost put spread collar i'm going to use as an example spy to etf it's probably the easiest proxy for market holdings so if you happen to hold spy or have a portfolio that behaves a lot like it as many do because that's essentially the s&p 500 that you can look to a trade like this one to give yourself a little bit of a buffer to the downside without actually spending some premium. i was looking specifically at the 375, 400, 435 put spread collar in july what you'll be doing is selling the july 3, and selling the 435 strike calls by selling the outer put wing and the upside call, you are financing the purchase of a closer to at the money put, and in this way, you still have some upside exposure up to that short call strike, in this case if it was spy 435, but you begin to see some protection below the long put strike of 400 and the idea here is that this isn't a disaster insurance, this isn't basically

and it's not just hedge funds that can move stocks and hedge funds can be beaten.s is a take back the particular stocks, without a real regard of why they should be this high now, i disagree with rich greenfield i mean at this point, if adam aron wanted to go do say a $2 billion convertible bond and pay down a lot of the expensive debt, it would be additive this is clearly a valuable property we are not going to stop going to the movies. he may be the, adam aron may be the only guy who makes it, and that would be an admirable position but this is really about the destruction of other people. and i know that there is, that rich people talk about, retail one buyer after another and that's true but a lot of the sellers walked away, they did the right thing, they knew these guys were coming, walked away and let them take it higher and that's what happened. >> how concerned or not should we be about the larger issue of the sort of speculative, what feels like speculative gambling versus actual investing at this point? >> i have lived through analysts who have come on ai

you need to hedge them with bonds.lly, a traditional portfolio you think about you want to be long bonds. but in this world, you have to hedge against the stag -- where zpwrothe not that great. you need to hedge with bonds. that's the opportunity that there are cash flows better than bonds. but they're extremely vulnerable to a rise in bond yields. it's really important to get that hedge. >> political pressure not to supercharge this economy even more has to be growing at this point. do you think the biden administration is going deliver everything it promises right now? >> the past fiscal policy still hasn't flowed through because of the pent-up demand due to the pan dem take that is still there. they are still excessably high. they're going to come down. you're looking at demand increases in the u.s. economy from 8% to 10%. a lot of that -- some of that will pull from real g.d.p. but some of that will create more shortages and more inflation. so we'll be expecting, you'll be looking at significantly higher inflation

, do you pick bitcoin as a hedge, do you do both as a hedge?i mean, when you talk to people, and you were way ahead of this energy curve and the up-tick in prices of the colonial pipeline situation with just sort of like the icing on that cake, but leaving that part aside, i think the inflation thing is real. i'm not saying it's 70s real but it's real, and its got a grip. i guess the question is, how much of one. >> i think it's definitely real , and it's part in parcel of what we've been saying for some time is that we've under -invested in the commodities sector for some time and you know, we have central banks around the globe printing money like crazy, and that creates inflation. that's how you make inflation. you know, we've had the federal reserve, neil, as you know, trying to create inflation for the last couple of years, and they didn't have a lot of success, but behind the scenes, what we've been seeing is that we've created a lot of demand for commodities but we haven't seen the same type of investment go into that. that's why we're s

i use that word carefully, the hedge, becomes the conviction call.hether this becomes a conviction call in a bigger way. tom: shout to jeff currie of goldman sachs, who just nailed this call. he said we are going to go higher, and we did that. let's get right to it with jack fitzpatrick. there's 14 things to talk about in washington, including the brawl last night between the washington capitals and the new york rangers. we will skip that. i want to go to the unspoken, which is the first 100 days of malarkey of people like you. how were the first 100 days of citizen trump? jack: of citizen trump, not well. we have seen a ton of statements that he would probably like to put on facebook and twitter, and will not be able to for at least the foreseeable future. but he's putting much in control of the republican party still, and we are seeing that in the fight between liz cheney and who could replace her in the house republican leadership position. so trump is still trump within the political party. he is still the leader of the party effectively, but cle

even then, the options markets were picking up hedges.with the selloff today, the options market wasn't that caught off guard because hedges have been rising consistently, even when we were rotating into tech for safety reasons. the second thing i would say is if you look to earnings season, it was actually kind of blah from an options perspective. we were not beating the implied moves set up by options. in tech, all of the moves that were beat on the options were to the downside. for example, twitter. i think the options market was signaling that for a little while now area. -- a little while now. guy: the vix, where is that going? amy: i am watching this number really closely because i think there's this mental line around 20. sub 20 has been this low volatility regime, and above 20 is not. when we kind of stayed in the 16, 17 handle for a while, people were saying, this is it. we are back to a low vol regime. then you get days like today that make people question whether that is true or not. i think if you see these systematic volatili

of hedge fund leverage might not capture risk."is idea that risk appetite could be in charge of vulnerable price action and all of the above. the federal reserve is really shaping risk appetite at the moment, too. there's tons of pushback and a ton of snark, but i think there are legitimate concerns about exec a with the fed was trying to say and who they were trying to talk to when this came out. lisa: there's concern that policymakers are conflating hedge funds and family offices at a time when regulations are very different. this report came under a lot of criticism not just for that, but also for stating the obvious, that if you have risk appetite increase and you have really high valuations that could eventually become a problem. what goes up may have to come down at some point. there were some really salient points in here, in particular about how very high levels of debt paired with high asset price valuations could be a toxic mix if there is some sort of deflation or some sort of withdrawal of stimulus. this to me as a real

sreenivasan: on this edition for saturday, may 22: the frile middle east ceasefire appears to be holdin a hedge fundid for one of the country's largest publishing companies wins approval. >> f me, i didn't even think it was feasible for me to ever get to u.c.-berkeley. >> sreenivasan: and, in our signature segment, the new wave of o.w.l.s-- older, wiser learners-- on college campuses. next, on pbs newshour weekend. >> pbs newshour weekend is made possible by: sue and edgar wachenheim iii. the anderson family fund. bernard and denise schwartz. the cheryl and philip milstein family. the jpb foundation. barbara hope zuckerberg. the leonard d norma klorfine foundation. the peter g. peterson and joan ganz cooney fund. the estate of worthington mayo-smith. we try to live in the moment, to not miss what's right in front of us. at mutual of america, we believe taking care of tomorrow can help you make the most of today. mutual of america financial group, retirement services and investments. >> for 25 years, consumer cellular's goal has been to provide wireless service that helps people communicate and

. >>> bonds may be coming to amazon hedge funds are loaded down with spacs. i should have seen you almost could have been like a domino's pizza. >> i could have been if it was dom. i don't know what else it could have been. i'm checking tickers now because it's all i can do on a day that's very much about consolidation. not much happening from macro perspective. we'll start with the top level look from the funnel down. look at the dow industrials up about 56 points. two key parts to keep an eye on that have been losing a bit of momentum as the afternoon has gotten started here. look at the retail trade walmart, home depot macy's come out with great earnings, by the way. we have a bit of that luster has come off we were much higher so far today. one other part of the market to watch. the reopening trade. think about airlines think about hotels think about cruise lines and restaurants out. this part of the market is still holding onto some gains today. united airlines, royal caribbean, marriott and darden indicative of that reopening trade. watch those retail n

funds changing option positions gamma hedging. it all the reason why the market tumbled. it is the perfect storm. there is another big inflation data point out later on this morning. the producer price index at 8:30 a.m. eastern time. maybe it can help rescue the market or send it sinking further. crypto also getting hit the last couple days. down again this morning as well. let's get a quick check. we are seeing bitcoin down 13% dogecoin up 32%. elon musk u-turn on bitcoin to buy teslas may be piling on the crypto carnage >>> if it seems like it has been a rough week for stocks, you are right. it has look at the declines since we kicked off trading monday morning. tesla down 14% the ark innovation rte cathie wood. with that move, apple is now down 7% on the year. incredibly, only six s&p 500 stocks are higher this week. six! i can read them. peloton. ironically, peloton, which suffered a crushing recall recently of the treadmill, is the best performing stock in the s&p 500 this week. one of the few that is higher. all right. step

it gives us a glimpse into the moves by major hedge funds during the first quarter of 2021.eddit field trading, remember that? archegos $10 billion of loss and counting. i could give you a rollcall call of what happened, but tech positions were dropped by on average 8%. some major funds dropped their exposure by 13%. did you trim any tech exposure at all in the first quarter, or are you about to? paul: yes, we did take some out. we did not take out the amount you mentioned. the rise in inflation environments tends to negatively impact long-duration equities that depend on low interest rates. also the geopolitical question marks around the u.s. tech ceos talking about chips. all of those weighed on our positions. annmarie: staying somewhat inditex theme, alibaba fell out of favor with a number of hedge funds. do you expect this trend to continue when you look at chinese tech given the clampdown we are seeing in that space? paul: it is a big question because the problem here is investors find it difficult to understand what can happen next in regards to government action we ha

their advice, buy japan linked to bonds to hedge against inflation.ourse we're looking at --upgrading guidance for this current fiscal half year. bloomberg intelligence seeing upside risk. even on the company's earnings. analysts think it is at least 10% too low given the upgrade and the trends where seeing. -- we're seeing. tune into bloomberg radio to hear more and get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. you can listen and by the app off radio plus or bloombergradio.com. lots more ahead. this is bloomberg. ♪ s is bloomberg. ♪ haidi: let's take a look at the day ahead industrial you. moderna seal the deal with the austral and government to provide 25 million doses of its covid-19 vaccine. the surprise announcement might also see the moderna vaccine being produced locally in australia. australia and north america -- in mining, exploration and public policy. nevada is the top area. also on the earnings front we are watching -- the company had been an australian stock market darling but they h

this is the news of correction shows and when we come back chris hedges joins us to talk about the brand new article of his all about president joe biden he seems to say to americans. chris don't trust him we'll be right back with chris his own words. those in command of toxic systems designed to keep us confused distracted and where you are no match for an awakened mind they lie you win the war they lie you and poverty they tell you what to think they're watching you are you watching them. watch you. watch on board a boat to. listen stop putting online algorithms dictate what you get to want to go to portable dutch t.v. slash download to get killer television it's completely free i'm talking award winning comedy awesome sports coverage inside so fresh still taste like raspberries on a spring day take so hot they'll burn your face off thousands of videos more added by the hour did i mention it's free it's it's yes free go go get it portable t.v. . thank you for finally. understand you're tired of networks ready. you know 'd i'm famous for my views. yours truly. 'd how to read out of read

we're still praying for it to stay low, so, you know, it's a good hedge.ttle in. we're okay with it. liz: all right. well, let me know when you start the service to columbus, ohio. i used to live there. i left a little bit of my heart in columbus, ohio. thanks, david. great to see you. >> great to see you, liz, as always. liz: david neeleman, the airline is called breeze. he is intrepid. >>> crypto's crashing back to earth. we now have bitcoin down $4,601 to a 35,815. ethereum is pulling back by 17%, same with light coin. what is having the biggest impact is in is it china's crackdown or the possibility of u.s. regulation and crackdown? the charlie breaks it next. >>> and michael kerr win dropped out of college with a nuttied idea of, hey, let me package and sell coconut water. that was 16 years ago when there wasn't coconut water in the u.s. today he's got vitacoco. it was a bumpy ride. he has a learning disability, but he also has this, the ability to not hear anyone talk down his dream. everyone talks to liz is my podcast. you've got to hear his story.

charles: you know i want to get back to the hedge fund thing.at all about? what is up with these hedge funds and by the way active money managers, they sold a lot of stock? they are ones supposed to have diamond hands? >> they are supposed to have diamond hands and process and discipline as well. if you think about the way the market has been acting most of 2019, 2020, 2021, it has been about momentum. chase the trend is what gerri is talking about. technology, when i talk to my clients around the world they hate technology. i think technology outperformed pretty dramatically in march and april. most of these same people, we talked about on this very same show sold tech too early they thought the value trade would come in. longer term value outperforms from a a a long term perspectiv. over the last 10 years that trend has not been the case. most investment managers not been in business more than 10 years although know is growth, growth works. they are befuddled quite frankly why value is doing so well. charles: i saw at the beginning of the week

loved by mutual funds and hedge funds.nancials and some were payment companies visa and mastercard were both on the list kari, for every home sold, for $50,000 additional gets spent on moving and sofa and new paint. whatever it may be american express was not on that list of 11 names if you like mastercard and visa, can you also -- you have to like amex, i imagine. >> exactly we bought amex a few months ago to some extent as a reopening play it was a discount to the s&p we haven't had business travel never mind leisure travel. amex really prospers when people start to travel particularly overseas they are a bank. they are exposed to interest rates moving higher. that was a positive. starting to see a big pick up in the vacations and leisure travel we haven't seen a pick up in business travel. that is coming for that reason, we think american express has a big run the stock has had a big run. axp should continue to move further over the next year or two because that growth rate is accelerati accelerating visa and mastercard

hedge funds own facebook shares.lobal news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ ♪ >> i fully expect that these misalignments are going to work themselves out because we do have a market, and we will get back to a full recovery and that by the end of the year, we are going to be a really good shape. jonathan: good to catch up with cecilia rouse, the council of economic advisers chair. alongside tom keene and lisa abramowicz, i'm jonathan ferro. up around 14 on the s&p, 0.3%. your bond market unchanged, 1.6284%. in the bond market, euro-dollar $1.2220. pmi's out of europe not doing much for the euro. pmi's out of america coming later this morning, i believe 9:45 eastern. lisa mentioned the fed speak. if this wasn't a technology conference, i would've thought those three might have something to say about the taper discussion in a bigger way. tom: but they are not going to come a right? lisa

fix, destroy the inflation hedge argument?— destroy the inflation hedge argument?ecause of— argument? a good question because of cause _ argument? a good question because of cause bitcoin - argument? a good question | because of cause bitcoin had been touted as something which is a bit of a treat for investors, if they can find a negatively correlated asset with inflation, and when the fears of inflation go up, an asset such as gold, crypto currency appreciates in value. that had been one of the attractions but of course inflation has been dominating these headlines for the last few weeks, and the crypto assets are going the other way, so it is suggesting that the touted attraction does not stand up to scrutiny. what happens — stand up to scrutiny. what happens to _ stand up to scrutiny. what happens to all— stand up to scrutiny. what happens to all of - stand up to scrutiny. what happens to all of this - stand up to scrutiny. what| happens to all of this when stand up to scrutiny. what - happens to all of this when the cheap money from the likes of the federal res

the hedge against inflation risks that everyone is clearly worried about at the moment is a hedge againsta conversation about exposure in your portfolio. on its merits on its own, we are little more circumspect at these levels. shery: the global multi-asset strategist at j.p. morgan asset management. good to have your thoughts. coming up next, several chinese company's put the brakes on lance to list in the u.s.. we will examine what is behind the souring sentiment. this is bloomberg. ♪ >> is daybreak asia. i'm vonnie quinn with the first word headlines. the u.s. olympic committee says it is confident current safety measures will allow for team usa to compete safely at the tokyo olympics. the state department issued an advisory urging americans not to travel to japan over virus concerns. tokyo along with other prefectures remain under a state of emergency with less than two months to the start of the games. another sign of normalcy returning to new york city, mayor bill de blasio says all public school students will return to their school buildings in september. thermo option will not be

you never really know with puts obviously but it sure felt like that was a very smart hedge. >> yeah.antir action we saw today is this. >> guy made a point on the volume, certainly where sentiment was ichbl vinvestors needed to see the number on high expectation. the 49% percent growth, ability to broaden again, their fortune 500 audience is drawing as it is, the guidance there is extraordinary. this is part of reddit mania and i think that hurt the stock, it confused with stocks like gamestop that don't have fundamentals yes, valuation needs to make sense but i think it got to a place a lot of value investors are able to own this thing you look at the software space overall and at some point we're starting to see that. >> all right, mike khouw thank you, tune into full show friday at 5:30 eastern time. >>> coming up, real disaster, plunging 20%, one hitting the buy button and one trader says this stock is ready for a big break outside. tus.on" e when "fast mey rern confidence is at the heart of everything we do at carrier. our systems fill buildings and homes with healthy, clean air.

is it the appropriate hedge? is it to -- too correlated to hedges? gershon: the higher-yielding, corporate high-yield, emerging-market debt, is usually correlated. what is the definition of volatility? it was interesting to hear him say that. equity volatility has been muted in periods rising inflation while underlying government bond yields tend to be volatile as we do not know the magnitude of the inflation that is yet to come. and then, you look at the third leg of that school -- stool, emerging-market debt is going to continue. rates will be near zero for a long time. there is an insatiable demand for yield. taylor: noelle, do you agree with that? does the 10 year appear to be risk-adjusted? is that an appropriate risk-adjusted reward where we are at these levels? noelle: we think it is going to be pressured higher and that is on our growth and inflation view. it is going to be pressured higher. the curve is going to be pressured steeper. we have quite a bit of room to go in the 10 year and that could potentially weigh on right-sensitive assets -

whether it's the readings we get from the retail side or even a hedge fund?atie: it is still small, but you are seeing some caution get built into the stocks. there was this great set that found that 22 percent of option volume is mostly in clips. that's the second biggest amount since july. you go to the other end of the spectrum, the hedge funds, they are doubling down on their bearish bets on tech, specifically. you are seeing some caution spill into the market, but it is still building. if you look at the charts, there is not a lot happening yet. romaine: we will see what happens next week. katie greifeld giving us an update there. here's more on what you miss -- what'd you miss?, coming up. demand remains strong, leaving investors paying record high cash prices. that's coming up next. this is bloomberg. ♪ romaine: all the attention we have put on cryptocurrencies this week, you might have missed some volatility in lumber. lumber in the span of two hours hit limit down and limit up, ending the week on a high note here, but still down on the week by about

which is a short only hedge fund.in our firm is named after the ancient egyptian goddess stuff cat. soft cat was the goddess of knowledge mathematics accounting wisdom which all seem very perfect. i love short selling and that's how i want to make money. back in 2017 we were preparing to launch in january and we wanted to have a good pipeline a healthy pipeline of various short positions where we have conviction the price will go down. our belief and every piece of evidence that we were able to collect over the last almost 3 years pointed towards wire cards being a massive digital launching that. we're not to name and we while companies like why are card are at the forefront of digital business traditional banks are lagging behind was big commands bank now fears losing its spot on the dax due to its low stock value and why a card might take its place let me say a forceful victory for me to my stool to become part of the. 30. why account is valued just over 20000000000 euros with a less than 5000 employees the company

yvonne: are those hedges still in the commodities space? we have been watching this unstoppable rally. how do you square that with what we are hearing out of china? >> i think that the chinese cooldown is getting absolved in the prices. we think that commodities is going to be the right hedge to have. the one thing you will have to balance is pressure from china but still, as your editor was talking about just a few minutes ago, there is still too much pent-up demand when he lays that out against the extremely high savings rate. eurozone above trend growth plays out. the european recovery funded play. the commodities prices -- let's not forget that firms writ large have been a lot more disciplined in terms of creating new supply. given that, i think we are looking at not just a short period but also a long period where you are going to see concerns of supply. yvonne: i'm watching the csi 300 in china. a little bit more momentum in this market. we have pretty much been range bound. you mentioned china as a key part of an investor 2021 portfo

i'm long i think it's an inflation hedge. >> farmer jim what have you got? >> boeing.ekt stair step going higher. >> all right liz young. >> euro zone >> thank you very much good to see everybody. the exchange starts now. >>> thank you very much, scott hi, everybody. amazon is under fire saying the price controls are anti-competitive we will speak with d.c.'s ag more spengds, more flying, more saying we will look at the big

hedge funds and private equity have a role in that. >> you try to hedge dollar bets. you would not do gold orbi bitcn or crypto? >> a lot of clients ask about bitcoin. that is the most frequent question less after the recent vol volatility they are tryingto find a replacement for fixed income trying to find something that is negatively correlated when equities go down that is not a good substitution. bitcoin is not an equity hedge for those what say it will save your portfolio that does not fit our definition of a hedge >> against the dollar. against the money printing and what we're seeing. i'm not sure you said you go to europe maybe you can hedge a little that way you don't have a dollar hedge against what we are seeing unprecedented qe. >> we are worried about inn flakes we don't think it will get as rampant as your with guests said of 7% or 8%. we think it is slower than that. we not calling for the dollar to depr depreciate in our mind, the bets and traditional commodities are a better way to protect yourself than a more recent venture. >> i don't know about liv

some hedge fund darlings might have been having to sell some of these names. i think it's a confluence of reasons for the selling today and the last several days inflation, inflation expectations even though nominal rates are just pushing back up to where we were several weeks ago at 170 >> how healthy is this market then, do you think i mean not just the market itself but the psychology around it you mentioned maybe the damage to shorts after what happened with gamestop. in a well functioning market you can argue there should be a healthy amount of short interest >> i agree i think short interest is future demand >> got to get you to hold on we have some breaking news we got to pivot to the band market ten year bonds up for auction. rick is tracking that action at the cme. what's the demand look like? >> the demand was stellar. do remember we had a really decent size sell off the last 36 hours pushing yields higher. buyers have a bit of an incentive and that was used today. a minus for 41 billion ten year notes, the second part of a package of 126 billion of

we will be discussing which hedge bond -- which hedge fund made the most notable exit.his is bloomberg. ♪ haidi: we are getting the deadlines for the 13f filings. what stock they hold as of the end of each quarter. su keenan, we like to say the 13f gives us a sneak peek into where money is being invested. what do we learn? su: it is a fascinating look. the smart money, they have lagged the market in recent times. a couple of key themes emerge. alibaba seemed to fall out of favor of many funds. disney and other stocks dumped by stan rep. miller:'s fund, it is exposed to family parks and the cyclical nature may have been what caused it to lug behind. gamestop. need we say anymore? went on a wild ride with all of the meme generated rallies. we know melvin capital lost big time. 13f shows he managed to asset his position. one of the many funds diving into energy. added to an energy etf and a lot of funds were in and out of banking because that sector has tended to lag this year as well. shery: and other key theme of the last quarter. what do we know about how funds were imp

they are great diversifiers, even when you hedge back to the dollar.t's where i would be looking. i would be looking as well to small caps. if you are in the s&p 500, you are not even 50% of global markets, so my answer to you is to diversify. guy: one of the ways people are diversifying at the moment is by including yes g in their portfolios -- including esg in their portfolios. warren buffett was pretty down on esg over the weekend, kind of scoffing at it, really. if you are thinking of diversifying in that direction, can you walk me through why you are doing it? should you expect a higher rate of return? should you expect higher performance? it is a conversation we have with every single investor. i've yet to get to the bottom of why. dana: it is a great question. it is a complicated answer. one, of course, you can do it just out of support, similar to taking out tobacco stocks, take out gambling stocks because you believe in a certain future. obviously that is kind of straightforward. your question on return is an interesting one. we have a lot of

they need to hedge long-term liabilities with cash flow. don't know if amazon is going to be around in 30 or 40 years. it is really hard to brick outside of five years, and you get a much steeper curve. if you look at the credit spread versus the 30 year and the 10 year, you are getting a lot more yield, and right now, increment a yield is the name of the game. tom: i just saw the 40 year piece is 1.15% over the equivalent treasury. you move the decimal point over. if you discount that back for any kind of inflation, basically amazon is getting money for nothing, right? [laughter] matt: yeah, the real rate of return for them is probably very low. i don't even think amazon looks at it in terms of inflation. they just look at how fast they can grow, and amazon is going to grow a lot greater than 3%. jonathan: well said. good to catch up. so we will have a two year piece, a three year piece. they are kicking off that debt sale. you mentioned the initial price target may be of the 40 year for these. the two-year, 30 basis points plus. tom: our

one can put one's hedges on.me value, it has some psychological benefits to it. we have gold above 1850 in the spot is very important from technical and psychological perspective. the monetary authorities are being expansionary everywhere around the world. i think that benefits gold. there are times when one is to be neutral of gold. there are times one is to be bearish of gold. there is times one is to be bearish. i'm chairman of the university of akron endowment. we took a 3% position in gold in late february. reduced our exposure to equities for an endowment that is a big move. we have a meeting this thursday, or wednesday, i may actually try to move us a little bit more gold and little bit less exposure to the equities market. stuart: how do you invest in gold? this is for the average viewer. i don't think most of our viewers would invest in gold futures contracts. >> no. stuart: maybe they wouldn't do that, maybe some do but a lot don't. how about gold mining stocks is that the way to go? >> i prefer owning

also, a lot of these carmakers are going to hedge this.the supply constraint happens today? guy: i just googled foundry, and i am just wiki-ing this, so not the most accurate, but the founder produces metal casings. my segway works, basically -- my segue works, then. you just steamrolled it, basically. [laughter] booking holdings seeing modest improvement in bookings, but says international travel is the key to recovery. ceo glenn -- glenn fogel joining us next. this is bloomberg. ♪ ♪ ritika: this is "bloomberg markets." i'm ritika gupta, live in the principal room. coming up, phillip morris' ceo. this is bloomberg. ♪ alix: online travel company booking holdings posted earnings that showed mixed messages about travel. how doolittle has more -- abigail doolittle has more. abigail: the great news is that gross bookings came in above estimates. they did post a narrower losses that -- loss than expected. analysts saying while they are encouraged by the big growth number, it appears there's an uneven recovery. so where we saw lots of strength i

you don't have to worry about the 20% you're not hedged. >> yeah, sure, weather is always somethingw, i think many of us were affected by what we call least internally the texas phrase and activity in the southeast in terms of inflation and the effect on it, there is a lot of pricing power and price architecture that we're very familiar with we've been doing this for a very long time able to utilize a lot of venues to get price to combat that inflation, which is a real inflation. >> right. >> coming at us but we have a lot of tools to be able to map those out and lap those year over year and continue to gain share and sales. >> how about these new 10,000 new outlet dollar stores, which is dollar general down today but a terrific place to sell it to. >> i think, you know, really, if you think about the future of grocery, where do you think it will be? food sales, where is it going to be mass is fantastic driven by walmart. grocery got a strong rise but as you look into the future, yeah, the dollar generals, the family dollars, the dollar trees, there is a lot of those replacing the b

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