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Oh my goodness it’s always good to have a little comedy on a saturday night and this is what we have here today guys i’m gonna share some moves that a hedge fund manager has decided to make out there in regards to some stocks over the past couple months these are some very very interesting moves we’re gonna dissect these and we’re gonna get his opinion on these moves

Guys hope you enjoy this a hit a thumbs up if you do all right hedge fund activist daniel loeb is worried about this market cuts netflix and exits facebook okay let’s look at this here dan loeb blamed his pessimistic market outlook on his expectations for a slowdown in u.s. economic activity for the next 12 months third point exited stake for facebook and cut its

Position in netflix according to a filing with the sec all right third points dan loeb is concerned with the current market conditions and told investors in a letter that he has significantly cut the firm’s position in technology stocks the hedge fund has fully dissolved of its stake in social media giant facebook and cut its position in netflix by more than 33

Percent according to a filing to the sec all right this was just very recently this came out alright the firm however is up to its position in microsoft to four point 1 million shares now ok first off let’s let’s just talk about this facebook in this netflix id and then we’ll go from there okay netflix has gone down significantly over the past let’s say you know

Nine months or so basically since i round the the time i put out the video about you know maybe we should short amazon and netflix at that time and netflix shares were around 420 dollars a share and since that time it’s gone down a lot now this gentleman since he sold out over the past few months has sold out probably near the of the lows that netflix has hit okay

So he’s probably sold out at some of the cheapest prices netflix has been out alright same thing with facebook shares if he’s been selling out of facebook shares the last few months he’s been selling out anywhere between about a hundred and forty five dollars and probably one hundred and sixty dollars all right now why didn’t he sell out he the perfect opportunity

To sell out a facebook a long while back right when everything came out with cambridge analytic oh the stock was right of much higher level than now we knew about all that risk he could have sold out near $200 why didn’t he sell out there that’s a that’s a big question first off okay so here’s some more things alright while current us growth remains above trend

Helped by fiscal stimulus this positive impulse is peaking now and will combine with an increasing drag from tightening financial conditions loeb said in the letter dated friday we have delivered our portfolio reduced our tech exposure meaningfully and grown our short book we expect to be net sellers over the next few months if the markets rally so let’s go over

This statement then we’ll get to the rest of this okay he believes that right now us growth remains above trend but he says obviously you know we’re at the peak right now and you know things are gonna get worse we’re at the positive impulses peaking now he says okay first off i’m not sure we’re at a stake where he’s almost making a sound like everybody is so bullish

Right now is so like happy with where the markets going in when i look at it right now i see a lot of bears out there i see a lot of people who are like i’m a little scared maybe i shouldn’t purchase this i you know i hear from friends and family members all you know maybe maybe you should wait i’m buying the house till next year or the year after maybe the markets

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Gonna crash as a stock market gonna crash real estate’s gonna crash like i hear a lot of worries out there here a lot of scared people i wouldn’t say we’re at a positive moment in the markets in general right now i think there’s a lot of fear out there from a lot of people we’ve seen it in the markets we’ve seen a lot of fear in the markets in the stock market in

The real estate market recently okay over the past year we’ve seen this continuously so as far as like oh we’re at peak bullishness right now i just in my opinion i don’t see peak bullishness going on when i actually you know talk to people out there and just kind of get a perception okay the firm exit is positioned for win resorts and financial giant blackrock

Wynn resorts another one okay you sell it at wynn resorts over the past few months not necessarily a bad move because wynn could be going lower okay there’s a couple reasons one is they’re gonna have a lot of costs with the boston property as they ramp that property and then also with wynn resorts china could be getting weaker so when i look at wynn resorts it

Starts to get attractive to me around under a hundred dollars but i’m probably not even buying wynn resorts ahead right now but here’s my issue of wynn resorts why did he not sell out when it was near $200 when i was selling out like why didn’t that was the perfect time right around the steve wynn scandal that whole news came out there was like the perfect time

To get out of wynn resorts at a massively higher price than where it is that now that that time it was anywhere between 180 and $200 that was like the perfect time any time around there to get out of wynn resorts why would you get out of wynn resorts now when it’s around you know $100 or 120 he probably sold most of his shares between 100 and 120 which once again

Might be good because it’s gonna probably go lower but at the same time when i look at this i’m like why why not sell we shouldn’t should’ve been out of this position six to nine months ago in my personal opinion okay when i look at wynn resorts all right loeb has also disclosed a new stake in american express on friday blamed his pessimistic and market outlook

On expectations for a slowdown in u.s. economic activity over the next 12 months so he’s basically bearish on the overall us economy i’m not gonna argue with that anything can happen in the short term i’ll never argue against somebody that says we’re gonna have an exit of a bad next 12 months in the overall us economy or something like that like whatever you know

Anything can happen who knows it could also be a very strong economy over the next 12 months like i hear a lot of people make a lot of predictions all the time short term on economy and most the time guess what they’re wrong okay i’ve over the last eight or nine years i’ve heard person after person say oh i’m worried the us markets that peak right now or markets

Gonna go down oh you know the us economy’s gonna go down i’ve heard this time and time again for eight or nine years since we came out of the great recession and i’m still waiting on it eventually somebody’s gonna be right and it will happen but all this like worry it’s like okay unless you have something concrete you can show me unless you have something concrete

In the numbers you can show me you know the you know what is this you know maybe things could get weak over the next 12 months okay current above trend growth will slow over the next year he says growth outside of the u.s. is tepid driven by china tightening still percolating through the system as a markets wait for the country’s reset stimulus to take effect you


Know i kind of agree with him as far as china china is a big wild card right now you know china could have a very next year we’ll see if a trade deal gets done if a trade deal gets done that can keep both sides happy the us and china you know maybe i could be a big recovery for china but if no trade deal comes i see a you know pretty weak fairly chinese market

Over the next year or two in my personal opinion if no trade deal gets done i highly doubt the u.s. the chinese market is gonna be super strong if no trade deal gets done well over the next few months on that’s my personal opinion so we might have a we might at least agree on on china overall and obviously i’ve never been the biggest netflix fan in the world so it

Might curry in that as well okay campbell soup so this gentleman has bought a massive massive stake over the past year in campbell soup all right and lastly we’ll just end out here he manages around 18 billion dollars okay manages 18 billion dollars of other people’s money wow what a great thing to do right the firm is up point six percent this year versus sp500

Up oh well over 10 percent so as warren buffett says hedge funds don’t even usually do as good as s&p 500 this is more proof in the penny and my in my issue with this is you know anybody can have a bad year i don’t care if you’re warren buffett i don’t care who you are the greatest investor ever every single person can have a bad year here and there my issue

With him is he’s he’s so on to perform the marketing he’s been in these positions for a long time so it’s not like he’s just you know started buying some steaks and some new companies or something like that and they gone down the short-term like a lot of these steaks and companies he’s had for years and years and he still had an absolutely horrible year and he’s

Got 18 billion dollars under management this isn’t like this some average joe in his basement or something this gentleman’s got 18 billion dollars worth of other people’s money and to be a severely underperforming the market and to obviously be a follower in netflix and facebook our stocks that you should have been out of a long time ago if you want to get out of

Those stocks if anything you want to start buying those stocks now when they’re down here at these levels he’s just kind of following the market the market crashes his stock he goes the heads and sells off it and be like oh i want out of that now watch facebook end up coming back over the next few years and all of a sudden it’s a to $300 stocky getting’s and you

Know he’ll probably buy a back then and this is my issue okay people sometimes you know say things like smart money smart money is selling out of stocks or start smart money is selling out of of this particular stock or what not because they see someone that has you know a net worth and the hundreds of millions or the you know they got a few billion dollars or

Whatever or they manage a lot of money and they call that smart money like these guys are so smart hedge fund manager is so smart tell me if hedge fund managers are so smart why do they consistently underperform just basically what the market goes up if these guys are so smart there’s one thing they’re really smart at and i’ll give them all the credit in the

World for this they’re really smart and getting other super rich people to manage you don’t give them their money so they can manage it that’s a the end of the day guys when i look at a lot of these hedge fund managers they all they play is follower whatever the hutt stock is they try to buy that stock and ride in a lot of times they end up getting burnt on it

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Then when a stock crashes down then they sell near 52 week lows and you know it’s like okay wait you shouldn’t you be buying the stock there they’re almost playing the game of you know buy buy high and sell low and something like that and that’s another big reason why these hedge funds can have horrible horrible years year after year but yet they manage tons of

People’s money out there and it’s like you know if people want to give their money they’re their million dollars they have or their ten million dollars in assets they have to a hedge fund manager to manage their money so it doesn’t even do as good as s&p 500 i’m just like why do people make these decisions like that like men these hedge funds must be really

Good at selling people where do they get facebook i’m looking at the stock this guy just eggs it at this position right facebook this company has revenues exploding profits exploding at 52 week low right now has a four p of 17 despite you know what they should have massive growth going forward for many many many many many years into the future and this guy sells

Out of it here it’s like really you sell out now why were you not selling out a while back when it was 200 netflix why not sell out of the you we know about the competition coming in netflix pace well we’ve known about this for over a year i’ve been talking about on the channel why was he not selling out when it was 400 plus dollars what do you start selling out

When it’s around $300 like that’s a massive massive difference in money there right and then you buy a stock like campbell’s soup campbell’s soup that would have been a great stock to buy back in the 1950s it’s about to be 2019 okay in campbell’s soup is not really the type of stock i would want to own that has much of a great future in front of it okay so when

I look at this i’m just like this is like a comedy show to me and these hedge fund managed to get away with it and the fact that other people are investors consider them smart money is baffling to me is baffling to me you cannot tell me these hedge fund managers are smart money okay if there were smart money they would at least be able to keep up with the markets

Year after year or beat the markets they’re not smart money guys a lot of these guys are just clowns and they’re just following whatever the market trend is and if everybody’s selling off stocks or a particular stock they do it as well so they can just kind of like push that way and like oh it wasn’t a piece of that and if a stocks flying high they buy it near 50

To e highs to try to ride that and say oh yeah by the way you yeah you see that stock it is 52-week high yeah we own that microsoft by buying more and more microsoft near its 52-week high right that’s another position so you’d be like oh yeah microsoft by the way yeah that’s a big position for us yeah microsoft you see how good that was doing over the past year

Yeah yeah we own microsoft we’re so smart it’s like dude oh oh my gosh this anyways guys i hope you enjoyed this thank you for watching and have a great day

Transcribed from video

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