“Tiger Cub” hedge fund manager Chris Shumway spoke at the Ira Sohn Conference about the recent volatility we’ve seen in the high-growth, momentum stocks.
He identified three things slamming the sector:
1. The Fed: Fed Chair Janet Yellen isn’t providing a lot of guidance as to how rates will be managed.
2. Putin: “Risks are real…Dangerous game of chicken being played on a global stage.” He’s afraid of a real election in Ukraine. If we have an election in Ukraine, it will be pro EU instead of pro Russia, he said. “We are worried. We think hedging is required, this is one of the big risks in the world.”
3. China: Real GDP, industrial investments, exports all in decline.
Shumway presented a chart called the Hammered Index, which included a basket of momentum stocks that have been hammered this year. He cited Workday and Amazon as examples.
We haven’t heard much from him since he closed his Shumway Capital Partners a few years ago. The fund, which was seeded by legendary investor Julian Robertson, had managed about $US8 billion at its peak.He’s running a family office fund these days.
His best investment idea at the conference was long Moody’s.
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