Dynamic Beta Investments This story is available exclusively to Insider subscribers. Become an Insider and start reading now.
Andrew Beer is the founder of Dynamic Beta Investments, which manages over $400 million in assets.
Beer explains how leverage has made the Archegos blow-up the Frankenstein version of GameStop.
He also shares how investors can capture hedge fund alpha without taking on too much risk.
Nearly a week since the implosion of Archegos first spilled into public view, former Tiger Cub trader Bill Hwang s family office and its slew of prime brokers are still in the eye of the storm. This story, as we ve heard it so far, is clearly missing some pieces, Andrew Beer, managing member of Dynamic Beta Investments, said in an interview.
Hedge Fund and Insider Trading News: Steve Cohen, Elliott Management, BlueMountain Capital Management, Archegos Capital Management, Square Inc (SQ), Alimentation Couche-Tard Inc (ANCUF), and More
With just hours to go before the first pitch of the 2021 season, Steve Cohen finally made the move that will define the early part of his tenure as New York Mets owner. Cohen, a hedge-fund manager who bought the team for $2.4 billion in November, agreed to give star shortstop Francisco Lindor a 10-year contract extension worth $341 million. The deal, which as of early Thursday morning hadn’t been announced, doesn’t start until 2022, potentially keeping Lindor in Queens for more than a decade.
GameStop, other short squeezes expected to face regulatory scrutiny
Sen. Elizabeth Warren, D-Mass.
A U.S. legislator and some members of the hedge fund community are calling for regulatory scrutiny and intervention regarding last week s pummeling of short sellers by retail investors.
Sen. Elizabeth Warren, D-Mass., a member of the Senate Committee on Banking, Housing and Urban Affairs, sent a letter to Allison Herren Lee, acting Securities and Exchange Commission chairwoman, requesting that Congress and the public are given information on how the SEC intends to address these concerns and prevent these and future incidents of potential market manipulation.
Ms. Warren said the wild fluctuations in GameStop Corp. and other U.S. companies stock prices are just the latest indication that many private equity firms, hedge funds, and other investors, big and small, are treating the stock market like a casino, giving little consideration to the companies, communities, workers, and
Advertisement
Short-selling is when institutions bet that stocks will fall. They do this by borrowing those stocks and selling them. They then buy them back later at a cheaper price and then return the stocks to the original owner, pocketing a profit. We have to be judicious about the short book, Left said in a video posted to Twitter. Even though we have been called boomers many times over the past week, we understand the changing dynamics in the market. So with that we ll become more judicious when it comes to shorting stocks. Doesn t mean the industry is dead. But it just means you have to be more specific. As for longs, we have some great ideas in the future.
GameStop saga triggers Wall Street rethink after short-seller losses businessinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businessinsider.com Daily Mail and Mail on Sunday newspapers.