Real Talk on Martin Wheatley, FANG Stocks, The Herd, Billions and Defenestration

May 23 2017 | 3:05pm ET

Today, you-know-who joins a hedge fund, active managers like the same three stocks, Billions builds a set, and another Ponzi Scheme is uncovered.

Shot: The Nation: Why Won’t More American Corporations Support Single-Payer Health Care?

Chaser: The Sacramento Bee: The price tag on universal health care is in, and it’s bigger than California’s budget.

Quotes of the Day

"I think that regulators and politicians in particular have always misunderstood hedge funds and been a little afraid of them."

Martin Wheatley is back and taking a gig with a Hong Kong based hedge fund.

Why isn’t anyone clapping? Come again? Martin Wheatley.

No, not the director. That’s Ben Wheatley.

You know. He was the former chief executive of the Financial Conduct Authority (FCA).

No, you’re thinking Phyllis Wheatley, the poet.

Martin got into that spat with George Osbourne a few years go.

Come on…Martin…Wheatley!

No, that’s Martin & Wheatley…the “independent lettings, investment and property management company based in Surrey with more than 48 years of market experience.”

Wheatley. He worked at the London Stock Exchange for 18 years. He was on the board.

No… not the martial artist… that’s Martin Wheeler.

“When market breadth is low, hedge funds simply go to the few stocks where alpha can be found.”

That says it all.

A trip to SALT last week reminded us again how the herd likes to travel together.

Institutional Investor offers a nice breakdown of how hedge funds are going heavy into FAANG stocks.

The key part of the story comes from Goldman Sachs Group’s Hedge Fund Trend Monitor report. More than 60% of hedge funds list Amazon, Alphabet or Facebook as one of their top three holdings.

“You’re not looking to buy it. You’re only looking to get the rights to use it for the season—to get a high-quality resolution that you can reproduce…and then destroy it at the end of the season.”

Want to know how the show Billions develops its sets to look like the inside of real hedge fund offices? It focuses on the artwork.

“The SEC said that since 2008, Murakami, 44, also stole more than $8 million invested with him, and used an additional $1.3 million to make Ponzi-like payments to earlier investors by misappropriating funds from later ones.”

That’s Reuters on the latest hedge fund manager heading to court over fraud.

“A Massachusetts hedge fund manager has been arrested and accused of misappropriating millions of dollars from investors and engaging in a Ponzi-like scheme, U.S. authorities said.”

His name is Yasuna Murakami. His firm: MC2 Capital Management LLC. He was arrested in Vermont over the weekend on a charge of wire fraud. He allegedly stole $8 million and claimed that his more than 50 investors could gain access to another fund he had set up abroad. He then just bought things… cars… personal investments… and paid for travel.

He will go to court this summer.

Reminder: You don’t need a trial when you have a dictionary.

Hedge Fund Reading List

Yahoo! Finance:A handful of stocks are boosting hedge fund returns, but it's not enough

Pittsburgh Post-Gazette: Arconic, hedge fund strike peace deal

CNBC: These 13 stocks are hedge funds' new favorites, Goldman says

Financial News: Pension schemes’ hedge funds conundrum solved – in one chart

Daily Times: Hedge funds shuffle positions as OPEC decision nears

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You can also pick up a copy of the June Hedge Fund issue at Barnes & Noble.

Garrett Baldwin is the voice of the The Daily Alpha, the features editor for Modern Trader magazine, and the author of The Man with The Big Red Balloon. 


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