LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Hedge fund Bridgewater makes $22 billion bet against European firms

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Thu, Feb 15, 2018
02:34 am
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent`s biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world`s largest hedge fund manager.

Although data was not available to show whether Bridgewater holds more European stocks than it "shorts" overall, an investor in the hedge fund firm`s Pure Alpha Major Markets strategy said that its position was slightly net "long" on Feb. 6.

But Bridgewater had reduced that long exposure significantly this year, the investor added.

Bridgewater, which declined to comment on its trading, bets on macro-economic events and has $160 billion under management.

Unlike the United States, where hedge funds are not required to disclose short positions, European rules brought in as a result of the financial crisis require publication once they go above a certain threshold.

Short selling is a mainstay of hedge fund investing and is driven by expectations that shares will fall, which means they can later be repurchased at a lower price to make a profit.

Although the filings do not say when Bridgewater first took out its European short positions, many of its above-threshold disclosures are recent, with some in Germany, Italy and France in the past two weeks. [L8N1Q43EF]

Bridgewater`s billionaire founder Ray Dalio spoke last month of the end of a buoyant global investment market.

"It just takes a little change in interest rates to have a bear market," he told CNBC at the World Economic Forum, adding the late part of the cycle may still have quite a way to run.

But in a post on Linkedin this week, he wrote: "Recent spurts in stimulations, growth, and wage numbers signalled that the cycle is a bit ahead of where I thought it was."CHEAP HEDGE?

The European filings show Bridgewater has bet against firms ranging from Anglo-Dutch consumer giant Unilever to French oil group Total, and from Deutsche Bank and German industrial group Siemens to Italian bank Intesa.

The group`s short positions have emerged piecemeal in a series of filings that were made public throughout January and February, although Bridgewater will likely have built up its trades in advance of those announcements.

Bridgewater is not known for picking individual stocks and James Helliwell, chief investment strategist and director of the Lex van Dam Trading Academy, said he thought the manager`s position was the result of a view on the wider economy.

"Whilst the extent to which it may be an outright short bet is uncertain, I suspect that it was seen as a relatively cheap hedge against existing global equity exposure."

A London-based equity sales trader at a large U.S. bank said the shorts could just be a bet on fund outflows as volatility increases – which could explain why there are fewer Bridgewater shorts on the UK market – as UK stocks are very under-owned.

Bridgewater`s short positions amount to more than $4.5 billion in France and top $7.3 billion in Germany, while in Spain its shorts in four groups amount to almost 1.4 billion euros ($1.7 billion) and in Italy include Unicredit and Enel.

Stock markets, after years of steady increases, wobbled last week amid concern that central banks, which have printed money and cut interest rates to bolster economic activity following the financial crisis, will pare back their support.

Bridgewater`s portfolio is fluid and it has been adjusting its trades, cutting back on shorts in the Netherlands, Spain and Ireland, while increasing them in Germany and Italy, the data reviewed by Reuters shows.

Bridgewater is not alone in its cautious stance, with BG Master Fund, based in Dublin, last week disclosing a 0.4 percent short position against German lender Commerzbank, while London-based Marshall Wace has made similar bets across Europe.

($1 = 0.8097 euros)

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Insurance alert! Big decision by Modi government to facilitate resolution of complaints - All you need to know

Why Gold prices have got low and is it expected to fall lower? Should people be looking to invest in it?

7th Pay Commission latest news today: DA hike, DR benefit, arrears, ease in LTC — updates that central government employees just cannot miss

NEET 2021 exam date latest news: Candidates check this big update

Sensex jumps by 1,148 points, Nifty closes at 15,246

Lexus drives in LC 500h limited-edition with price starting at Rs 2.15 cr

Hema Malini: My role in ''Sholay'' has been one of the toughest

EPFO members alert! Some say National Pension System is better than EPF, VPF; know what NPS calculator says

MCD by election 2021: FINAL RESULT of Delhi municipal bypolls! Full list of Kalyanpuri, Rohin-C, Trilokpuri, Shalimar Bagh North wards, seats - AAP vs BJP vs Congress

MTAR Technologies IPO Review: Invest for BIG listing gains and long term view, Market Guru Anil Singhvi says - know about valuations, risks

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved