The Largest Buyer of U.S. Treasurys Might Surprise You

According to a report in the WSJ, the largest buyer of U.S. Treasurys has been a “little-known New York hedge fund run by a former Yale University math whiz“. Element Capital Management, run by Jeffrey Talpins, has been the biggest purchaser of U.S. Treasury debt over the past 10 months. The firm, which looks to “exploit small inefficiencies in the world’s most liquid securities”, has raised some questions because its cumulative purchases of Treasurys looks to be more than the assets under management held by the fund. According to a presentation given last year, Element utilizes a “unique probabilistic approach” […]

Shorting Now Too Risky for Some Top Hedge Fund Managers

Some big-name hedge fund managers who made out shorting stocks last year now see major short positions as too risky, and are tilting their portfolios mostly — or completely — to the long side, Reuters reports. “Some hedge funds have already changed tactics and are simply buying cheap stocks, wary of getting burned if a stock they are shorting announces unexpectedly good earnings and the share price spikes — a real possibility in an improving economy,” writes Reuters’ Laurence Fletcher, adding that higher stock borrowing costs being charged by skittish lenders have also led to the shift. Among the big […]