World’s largest hedge fund doubles its short bet on European shares

[chinasun]

World’s largest hedge fund doubles its short bet on European shares​

2022-06-23 11:59:00
The firm, and others, reckon the stock market sell-off in Europe and the US has some way to go

The world’s largest hedge fund has almost doubled the size of its short bet against European companies in the past week.
Bridgewater Associates, the US$150bn hedge fund colossus founded by Ray Dalio, now has at least US$10.5bn of short positions on a total of 28 companies, according to research from Bloomberg, up from US$5.7bn over 18 shares a week ago.
READ: Should you sell in a bear market?
Its largest short-selling positions, of at least US$0.5bn, included Dutch semiconductor group ASML, French oil giant TotalEnergies, drugmaker Sanofi and German software group SAP.
Short-sellers seek to profit from falling share prices by borrowing stock in a company from another institutional investor for a fee and selling it.
The aim is to buy back the shares at a lower price and pocket the difference before returning them to the original owner.
READ: Why the FTSE100 isn't in a bear market (yet)
Bridgewater co-chief investment officer Greg Jensen has recently said that the stock market sell-off in Europe and the US should have a long way to go, based on the huge gains in recent years.
A similar point was made by Bank of America recently, which predicted that the S&P 500 bear market should end in around four months - if history were an accurate guide to future performance.
The short positions from the Connecticut-based firm are not as big as those it made following the initial Covid outbreak and are still around half its massive bet against the market in 2018.
In that latter year, when two-thirds of hedge funds lost money, Bridgewater made a huge $2.2bn profit as its Pure Alpha Strategy posted a 14.6% gain.
The approach seems to be working again this year, with the firm up 26.2% so far in 2022, net of fees, as of the end of last month.
Also, please refrain from calling it Ray Dalio's Bridgewater (of course, it is fine to say founded by Ray Dalio) as that is inaccurate given the firm is much more than him these days. There is a broad and deep investment bench, an established investment committee that manages the portfolio now, not Ray, though he serves as a mentor to committee, and the firm has completed a successful management transition from Ray to the next generation.
On his approach, Dalio said in a blog post: “If you are worried when the stock market goes down and happy when it goes up, it probably indicates that your portfolio is unbalanced. If your income is also tied to how the economy does, you are doubly at risk because your portfolio can go down when your income is worst which is scary.
“To me, the key is to not have any systematic biases by structuring your portfolios and your incomes so that they hedge each other and are in balance. Achieving good balance is the most important thing.”

World’s largest hedge fund doubles its short bet on European shares

The firm, and others, reckon the stock market sell-off in Europe and the US has some way to go

www.google.com

Ray Dalio's hedge fund is now the biggest short-seller of European stocks as Bridgewater bets $5.7 billion​

Ray Dalio's hedge fund is now the biggest short-seller of European stocks as Bridgewater bets $5.7 billion

The hedge fund holds 18 short positions against European companies worth about $5.7 billion, Bloomberg reported, though the bets could be larger.

www.google.com

 

[MH.Yang]

At the same time, Americans are also shorting Japan. You can pay attention to the current economic situation in Japan.

In fact, both Europeans and Japanese are just sheep that Americans graze by controlling their media and govt. When the American economy is in crisis, they will be slaughtered and used to feed the USA.

This is the inevitable outcome of countries without complete sovereignty.

We can also expect that after the decline of Russia, Indians who have lost their most important allies will become a new flock of sheep.

 

[ckf]

At the same time, Americans are also shorting Japan. You can pay attention to the current economic situation in Japan.

In fact, both Europeans and Japanese are just sheep that Americans graze by controlling their media and govt. When the American economy is in crisis, they will be slaughtered and used to feed the USA.

This is the inevitable outcome of countries without complete sovereignty.

We can also expect that after the decline of Russia, Indians who have lost their most important allies will become a new flock of sheep.

EU is a political aberration, and will eventually disintegrate. US using divide and conquer of balkans states to destroy western Europe, and EU collectively are high on the illusion of united democratic front. Most the balkan states are poor, corrupt and easily manipulated by US far right tactics.

 

[khansaheeb]

At the same time, Americans are also shorting Japan. You can pay attention to the current economic situation in Japan.

In fact, both Europeans and Japanese are just sheep that Americans graze by controlling their media and govt. When the American economy is in crisis, they will be slaughtered and used to feed the USA.

This is the inevitable outcome of countries without complete sovereignty.

We can also expect that after the decline of Russia, Indians who have lost their most important allies will become a new flock of sheep.

Seems like the siege of Kaliningrad is going to be the trigger of a Russia-NATO war and could cause a global economic meltdown unimaginable before. Lithuania is going to be the new sacrificed pawn and is going to be brutally mauled by the Russians. Best case scenario is NATO using Kaliningrad to barter it for Russian gains in Ukraine. World is sure getting complicated as the fight for the new world takes a more ugly turn.

 

[serenity]

All they are doing is harvesting Europe and Japan... also South Korea if you haven't noticed.

This way they get more capital flow into US and UK or wherever these people are based.

On one hand this among many other forms of financial maneuvering forces or encourages capital to flow from these centers into "safe havens" and they want it to flow into the US. A lot has flowed into China and other places but the US benefits by making something rather than nothing.

One another hand, the short positions mean they make more "money" afterwards anyway.

Europe is definitely in economic trouble because of this war. Short position is bound to make positive returns for shorters. In fact this would be any investors position not just any sort of finance cabal.

 

[MH.Yang]

Seems like the siege of Kaliningrad is going to be the trigger of a Russia-NATO war and could cause a global economic meltdown unimaginable before. Lithuania is going to be the new sacrificed pawn and is going to be brutally mauled by the Russians. Best case scenario is NATO using Kaliningrad to barter it for Russian gains in Ukraine. World is sure getting complicated as the fight for the new world takes a more ugly face.

The USA will not have a direct war with Russia. If the USA goes to war with Russia, even if there are no nuclear weapons, even if the USA can save Ukraine, the USA will lose the world because of this war. China has not left enough time for the USA.

Lithuania only obeyed the orders of the USA to make the conflict between the European Union and Russia more intense.

Kaliningrad was once a German territory, but now there are no Germans in that land, only Russians. The EU simply cannot control Kaliningrad unless they kill all the local people.

So I don't think war will break out there.

 

[Communism]

Shorting "Europe" (the EU) generally isn't a very good idea.

The reason why they never actually have a stock market collapse that is deep enough to be worth the squeeze is because their entire financial system is artificial.

Print some more money and send rates further negative and your short is now costing you money.

If fundamentals mattered, the EU markets would have tanked 60% within a month of the conflict escalation.

 

[khansaheeb]

The USA will not have a direct war with Russia. If the USA goes to war with Russia, even if there are no nuclear weapons, even if the USA can save Ukraine, the USA will lose the world because of this war. China has not left enough time for the USA.

Lithuania only obeyed the orders of the USA to make the conflict between the European Union and Russia more intense.

Kaliningrad was once a German territory, but now there are no Germans in that land, only Russians. The EU simply cannot control Kaliningrad unless they kill all the local people.

So I don't think war will break out there.

You are right US will not have a direct war with Russia but the Europoodles will have so much fear they will fight for Uncle Sam at his whistle. The US military weapons' juggernaut manufacturing complex will fuel the fear and war. The Euro packs will attack the bear.

 

[chinasun]

Before shorting Europe, the United States lured Lithuania to add another fire to Europe. This is the harvest season. Will the EU break up as a result? Is the EU still qualified to play chess after Merkel leaves?

 

[ckf]

Shorting "Europe" (the EU) generally isn't a very good idea.

The reason why they never actually have a stock market collapse that is deep enough to be worth the squeeze is because their entire financial system is artificial.

Print some more money and send rates further negative and your short is now costing you money.

If fundamentals mattered, the EU markets would have tanked 60% within a month of the conflict escalation.

It's a hedge bet against Euro assets vs long usd asset. Ukraine war was hedge bet against EU, which is a strategic competitor to US and can be easily manipulated by US foreign assets.

 

[MH.Yang]

You are right US will not have a direct war with Russia but the Europoodles will have so much fear they will fight for Uncle Sam at his whistle. The US military weapons' juggernaut manufacturing complex will fuel the fear and war. The Euro packs will attack the bear.

The military of any country has political influence, and so does the EU. So the EU needs Russia as its enemy. If the enemy Russia is lost, the interests of the European military industrial complex, generals, military media and so on will be dealt a fatal blow.

 

[serenity]

Shorting "Europe" (the EU) generally isn't a very good idea.

The reason why they never actually have a stock market collapse that is deep enough to be worth the squeeze is because their entire financial system is artificial.

Print some more money and send rates further negative and your short is now costing you money.

If fundamentals mattered, the EU markets would have tanked 60% within a month of the conflict escalation.

Sort of true but this is a case of whether they rather F* themselves with a thorned dild0 or a chainsaw dild0. Either way they are screwed. They can pick how they prefer to take the F*ing.

They either have no real ability to tell their shadowy rulers to piss off or they are the puppet masters in the manifested form of nations and a union. Either way they seem to have double down on going to the bottom with Russia.

 

[Viet]

EU is a political aberration, and will eventually disintegrate. US using divide and conquer of balkans states to destroy western Europe, and EU collectively are high on the illusion of united democratic front. Most the balkan states are poor, corrupt and easily manipulated by US far right tactics.

The military of any country has political influence, and so does the EU. So the EU needs Russia as its enemy. If the enemy Russia is lost, the interests of the European military industrial complex, generals, military media and so on will be dealt a fatal blow.

EU will disappear. US as puppet master. Russia is the new messiah. Don’t you feel bored repeating the same shit over and over again? I give you both a tip: if you begin to believe to your own propaganda then it’s time to seek a doc.

 

[MH.Yang]

EU will disappear. US as puppet master. Russia is the new messiah. Don’t you feel bored repeating the same shit over and over again? I give you both a tip: if you begin to believe to your own propaganda then it’s time to seek a doc.

The EU will not dissolve, but will sink. The USA is indeed the puppet master of Europe. Russia is not the Savior of Europe, they will also be hurt. But Russia has enough resources, they will not die.

 

[Viet]

The EU will not dissolve, but will sink. The USA is indeed the puppet master of Europe. Russia is not the Savior of Europe, they will also be hurt. But Russia has enough resources, they will not die.

Come on, you are just jealous the US is puppet master while you can’t convince even tinny island countries in pacific to join China club.
Sure, according to chinese old saying, EU will sink if not disintegrate.

Russia remains the country as it is since century: poor, authoritarian, less developed, full of hatred people jealous on peace, liberty, prosperity in the West. russians can ask Putin, where the money is Putin receives from selling oil and gas. Why their living standard is sinking. Where are the billions of dollars and euros?