Managers Stumped by Trump, That’s What Hedge Fund In­vestor Let­ters Show

Money managers tack­ling the po­ten­tial im­pact of new pres­i­dent Don­ald Trump are some­times bullish — and al­most al­ways hedged. They’re go­ing to do great, they say, but it’ll be a tough time for hedge funds gen­er­ally. Here are some ex­cerpts from com­men­taries

The Economic Times - - Finance & Commodities - David Ein­horn’s Andy Hall’s Lee Ainslie’s

easy “We be­lieve that the post-Great Re­ces­sion Wall Street money poli­cies have been good for that the but bad for Main Street. It’s pos­si­ble poli­cies...” [Trump Pres­i­dency] re­verses these

a drag “Ul­ti­mately, wage in­fla­tion could be­come in­fla­tion on cor­po­rate prof­itabil­ity and higher may force the Fed to raise rates sub­stan­tially, po­ten­tially caus­ing the next re­ces­sion.”

...Don­ald “While it’s hard to know ex­actly where main ecoTrump stands from day to day, his be em­ploy­nomic pol­icy ob­jec­tive ap­pears to ment.” “Things cer­tainly ap­pear to be get­ting in­ter­est­ing as the Trump ad­min­is­tra­tion wastes no time in over­turn­ing ap­ple carts...”

“The White House has quickly fol­lowed through on threats to shake up the old world or­der. A full-blown trade war with Mex­ico is now in the off­ing. The rest of the world has also been put on no­tice that it should not look for­ward to busi­ness as usual.” benefi“In­vestors have fo­cused on the po­ten­tial rates, ex­pen­scial im­pacts of lower cor­po­rate tax of off­shore ing cap­i­tal in­vest­ments, repa­tri­a­tion across many in­cap­i­tal and mas­sive dereg­u­la­tion to the po­ten­dus­tries. While we are fully at­tuned tial pos­i­tive im­pact of such changes...”

many chal“...we have also not lost sight of the pol­icy changlenges of im­ple­ment­ing such dras­tic for the es that could have enor­mous ram­i­fi­ca­tions gov­ern­ments, re­ceipts of both fed­eral and state cor­po­rate investment de­ci­sions...” “And did I men­tion that the Pres­i­den­t­elect has a habitof send­ing ran­dom and some­times bizarre tweets in the early morn­ing hours? Such un­cer­tainty ... will likely breed higher volatil­ity in the eq­uity mar­kets.”

SOURCE: BLOOMBERG

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