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Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]...
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]...
United Parcel Service, Inc. (NYSE:UPS) shareholders (or potential shareholders) will be happy to see that the CEO......
The Nasdaq Composite is showing a positive return for 2020, even though the unemployment rate has hit its highest level since the Great Depression.Source: Shutterstock These two data points do not seem to belong together. They are a head-scratcher.Perhaps the forward-looking Nasdaq "sees" a large dose of good news that is not yet visible to the human eye. Or perhaps the Nasdaq, like most Americans, got so sick of sheltering in place that it decided to go outside and run around for a bit.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhatever the reason, the stock market rally has become a delight to most investors recently. But the good vibes are flowing so fast and furiously that some investors may be wondering, "Is this too much too soon? Should we be having this much fun while the unemployment rate is soaring into the stratosphere, millions of businesses are shut down...
Exxon Mobil (NYSE:XOM) has both opportunities and threats going forward. However, I think that the combined magnitude of the company's opportunities is larger than the power of the threats facing Exxon Mobil stock.Source: Harry Green / Shutterstock.com Exxon's Dividend Is a Tremendous OpportunityOn April 29, Exxon announced that it would maintain its dividend of 87 cents per share. On April 30, the price of West Texas Intermediate was about $12 per barrel. Now it's nearly tripled to about $35.Since Exxon did not reduce its dividend when oil was changing hands for $12 per share, it will definitely not lower its payout when oil prices are much higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd, since economies around the world are opening up and fear of the novel coronavirus is declining globally, I think the chances of oil dropping below $20 per barrel anytime soon are extremely minuscule. Consequently, I...
(Bloomberg) -- Hertz Global Holdings Inc. shares are rallying two weeks after the company filed for bankruptcy in an extreme example of the bets investors are making on recovery from the coronavirus pandemic.The car renter’s stock traded as high as $3.70 shortly after the start of regular trading Friday, a 353% surge from Wednesday’s close. Hertz and its rival Avis Budget Group Inc. got a boost Thursday from signs air travel is poised to rebound.Hertz also is likely to benefit from prices of used cars at auctions coming all the way back from a mid-April collapse. Market researcher J.D. Power said Thursday that prices last week were above its pre-virus forecast.Those positives aside, Hertz’s equity holders are still taking on significant risk. Shareholders rarely recover anything from companies that have filed for Chapter 11 because under U.S. Bankruptcy Code, all of a company’s debts must be repaid in full before stockholders...
When billionaire financier Jim Simons makes a move, Wall Street pays attention. Simons is best known as the inventor of quantitative trading, using data crunching algorithms to make market predictions. He put his theories to work in the 1980s, when he founded the Renaissance Technologies hedge fund, and since then has established the best record on Wall Street, averaging a 66% annual return for over 30 years.Ask how he did it, and Simons will likely tell you that he took the emotional factor out of trading. Humans are fickle beasts, but data never lies. Take out the human factor, focus solely on the numbers and their patterns, and you can’t lose. Following this insight, Simons’ fund has brought in $100 billion in profits since 1988, and his personal fortune totals over $20 billion.It’s clear that a smart trader can build an investment strategy just by following Simons’ lead. And right now, the 13F...
