Bulletin
Investor Alert

New York Markets After Hours

Key Words Archives | Email alerts

July 14, 2020, 11:01 a.m. EDT

Why President Trump’s attitude toward the coronavirus has been an ‘incredible gift’ to investors

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Alphabet Inc. Cl C (GOOG)
  • X
    Facebook Inc. Cl A (FB)
  • X
    Centene Corp. (CNC)

or Cancel Already have a watchlist? Log In

By Shawn Langlois, MarketWatch


Associated Press
President Donald Trump with Department of Health and Human Services Secretary Alex Azar

‘Trump talking down COVID-19 risk gave investors an incredible gift — it kept markets resilient much longer than they should have, and enabled us to ensure our portfolio was sensibly positioned.’

That’s Axon Capital co-founder Dinakar Singh giving a nod to the president and his handling of the coronavirus pandemic in a recent note to investors cited by Reuters .

Trump, of course, has embraced that role, acknowledging he’s had to be “a cheerleader” to avoid creating “havoc and shock” in a country with the world’s highest number of infections and deaths.

“We simply never believed ‘what happens in China stays in China,’” wrote Singh, whose hedge fund overseas about $1 billion in assets and is up about 30% so far this year thanks to big bets on bets on technology giants, managed-care stocks and Japanese companies.

Specifically, the fund capitalized on rallies in Google owner Alphabet /zigman2/quotes/205453964/composite GOOG +1.78%  , Facebook /zigman2/quotes/205064656/composite FB +1.47% , Centene /zigman2/quotes/208900023/composite CNC +3.45% , Humana /zigman2/quotes/203095337/composite HUM +1.03%  , and Olympus /zigman2/quotes/203009041/delayed OCPNF +0.16%  , while grabbing profits from short bets on retailers Gap /zigman2/quotes/206554267/composite GPS +0.87%  and Kohl’s /zigman2/quotes/210414114/composite KSS +0.82%  .

Axon, as Reuters reported, has trounced the average hedge fund, which lost 3.5% in the first half. Singh said he was able to hedge earlier in the year by “adding some volatility protection,” a move that bogged down “performance in January and early February, but has helped ever since.”

What’s next? Sing, a former Goldman /zigman2/quotes/209237603/composite GS +0.51% stockpicker, offered a bearish take: “All investors should think seriously about buying ‘protection’ against structural rise in interest rates.”

No need for much downside protection in Tuesday’s trading session, with the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.05% pushing higher out of the gates. The S&P 500 /zigman2/quotes/210599714/realtime SPX +1.40% and Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +2.13% were slightly lower, at last check.

/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 1,506.62
+26.30 +1.78%
Volume: 1.44M
Aug. 12, 2020 4:00p
P/E Ratio
33.60
Dividend Yield
N/A
Market Cap
$1006.94 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 259.89
+3.76 +1.47%
Volume: 21.36M
Aug. 12, 2020 4:00p
P/E Ratio
31.75
Dividend Yield
N/A
Market Cap
$729.53 billion
Rev. per Employee
$1.57M
loading...
/zigman2/quotes/208900023/composite
US : U.S.: NYSE
$ 65.05
+2.17 +3.45%
Volume: 2.72M
Aug. 12, 2020 4:02p
P/E Ratio
22.77
Dividend Yield
N/A
Market Cap
$36.44 billion
Rev. per Employee
$1.27M
loading...
/zigman2/quotes/203095337/composite
US : U.S.: NYSE
$ 420.06
+4.29 +1.03%
Volume: 540,767
Aug. 12, 2020 4:04p
P/E Ratio
15.97
Dividend Yield
0.60%
Market Cap
$55.00 billion
Rev. per Employee
$1.31M
loading...
/zigman2/quotes/203009041/delayed
US : U.S.: OTC
$ 18.50
+0.03 +0.16%
Volume: 300.00
Aug. 11, 2020 5:19p
P/E Ratio
64.55
Dividend Yield
N/A
Market Cap
$23.41 billion
Rev. per Employee
$200,545
loading...
/zigman2/quotes/206554267/composite
US : U.S.: NYSE
$ 15.15
+0.13 +0.87%
Volume: 6.76M
Aug. 12, 2020 4:02p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$5.61 billion
Rev. per Employee
$122,815
loading...
/zigman2/quotes/210414114/composite
US : U.S.: NYSE
$ 23.43
+0.19 +0.82%
Volume: 6.78M
Aug. 12, 2020 4:03p
P/E Ratio
46.21
Dividend Yield
0.00%
Market Cap
$3.67 billion
Rev. per Employee
$156,814
loading...
/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 212.13
+1.07 +0.51%
Volume: 2.44M
Aug. 12, 2020 4:00p
P/E Ratio
16.13
Dividend Yield
2.36%
Market Cap
$72.62 billion
Rev. per Employee
$1.34M
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,976.84
+289.93 +1.05%
Volume: 340.21M
Aug. 12, 2020 4:20p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,380.35
+46.66 +1.40%
Volume: 2.24B
Aug. 12, 2020 4:20p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,012.24
+229.42 +2.13%
Volume: 3.35M
Aug. 12, 2020 5:04p
loading...

Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.