Some major tech names are now value play, says this star hedge-fund manager, as he shorts a meme-stock favorite

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Stocks are bouncing back, at least that’s the sentiment of futures.

A day after Federal Reserve Chair Jerome Powell confirmed to lawmakers what the market already knew – a soft economic landing could be difficult if the inflation monster is checked.

Like average investors, hedge funds had a bad start to the year. According to the Eurecache report, managers lost about -0.56% in May with the Nasdaq outperforming 1.49% but the S&P 500 SPX -0.13% behind 0.57%.

But one manager made some profit this year. This is Cliff Asness, founder of AQR Capital Management, whose equity-market-neutral global value strategy is up 48% so far this year, while his absolute return strategy is up 35%, according to CNBC, which interviewed him late Wednesday is.

In our call of the day, Asness offers to pick some stocks from its volume process and challenges the horde of memes on its AMC Entertainment AMC, +0.80% short position. First, the star manager addressed the broader markets and explained how he feels about hard-hit bonds these days.

“We don’t like him as much as we did six months ago,” Asness told CNBC. “If you were to force me to do so, I would say that we are anti-bond, even in a trend-following world that doesn’t really value value, and in the managed futures world, we are definitely short bonds.”

“I don’t think I can say bonds are a price game,” he said, and this contradicts some of the technical names he was reluctant to divulge. “That doesn’t mean there won’t be a major bond rally when we enter a recession, but bonds are far less destructive in terms of the things we compare returns to.” But it’s about tangible appreciation. Participation is harmful.”

Will its price game run into trouble when a recession hits? Asness said its strategists are not sensitive to macro factors, in part because they don’t make big industry bets. “I don’t think we have a very direct bet on bearish or non-recessionary.”

They said they stick with some value games because they always like that exposure and especially “when it feels very, very cheap.” While June represented a price drop, the highs are so high that they are tied to technical bubbles when it comes to the relative trade-off between price and growth, he said.

CNBC

In terms of value-for-money stocks falling into its playbook – cheap, profitable, low-risk and with good momentum – Esness outperformed tech giants Meta Platforms Meta, -0.76% and Amazon AMZN, +0.25% , 53, % and peaked at 34% year-over-year. -to date.

“Meta and Amazon are now generally favored by our process. They’re cheaper than their competitors… We do industry comparisons and they’re not always right – Meta is social media and Amazon is internet retail… but both look good with a combination of value, profitability and low-risk investment… Amazon does it well in all three,” he said.

In his in-depth interview with CNBC, Asness also took on the memes and announced a new short position for AMC Entertainment. “It’s terrible at everything that’s important to us,” Asness reportedly said. “It’s very expensive, super unprofitable, and has super high beta and super volatility.”

“I urge all meme stock maniacs to try to hurt us,” he said.

decide by Twitter’s response so far The meme crowd doesn’t appear to be declining, while AMC is up 1.5% in the premarket.

buzz

“Huge Money Ovens”. This is how Elon Musk, CEO of Tesla TSLA, -0.40% describes the two newest factories of the electric vehicle manufacturer.

EV group Polestar will debut on the Nasdaq on Friday after approving its deal with special purpose vehicle Gores Guggenheim GGPI, up 11.87%.

Darden Restaurants DRI stock is up +1.25% after the board recovered $1 billion in share buybacks.

Accenture stock falls on ACN, +1.30% on loss of earnings for the consulting firm.

Warren Buffett’s Berkshire Hathaway BRK.A, -0.53% BRK.B, -0.73% announced the purchase of an additional 9.6 million shares of Occidental Petroleum OXY, -3.63%. These stocks have gone up.

According to JP Morgan, investors now have more cash than they had in the early days of the COVID-19 pandemic.

Powell will begin his second day of testimony on Capitol Hill, beginning at 10:00 am. Weekly jobless claims and US losses lead, followed by S&P Global’s US Manufacturing & Services Purchasing Managers’ Index.

market

Equity futures ES00, +0.64% YM00, +0.44% NQ00, up +0.85%, bond yields TMUBMUSD10Y, 3.129% TMUBMUSD02Y, down 3.031%, while oil CL.1, +0.19 % BRN00, +0.15% remains. The drop, a day after settling at a six-week low. Bitcoin BTCUSD, +3.72% continues to fluctuate around $20,000.

diagram

Auto parts stocks are mostly priced into an economic downturn, and there’s “still a lively tailwind,” says Luke Junk, a research analyst at Baird. He says investors are looking for “areas that have already been washed out.” Electrification and proactive safety are the focus of companies that deal with vehicle technology. Gentherm THRM, -0.28% and Aptiv APTV, +0.30% are two oversold names that stand out best for junk stocks.

FactSet, Baird the Ticker

These were the most searched tickers on MarketWatch as of 6am:

anchor security name

TSLA, -0.40%

Tesla

GME, -1.30%

GameStop

AMC, +0.80%

AMC entertainment

NiO, -0.49%

NEVER

RPM, +34.32 percent

Revlon

AAPL, -0.38%

Apple

MULN, +5.26%

Mullen Automotive

AMZN, +0.25%

heroine

RDBX, -12.93%

Redbox entertainment

BoxD, +35.40%

packed up

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