Wednesday was Amazon.com’s turn to be the
popular hedge fund stock suffering a sharp drop in price.
Shares of the e-commerce pioneer fell 4.4 percent, to close at
$1431.42, after Axios reported that President Trump wants to
change Amazon’s favorable tax treatment.
"He’s wondered aloud if there may be any way to
go after Amazon with antitrust or competition law," a source
who has spoken with the president told the website. It is
little secret Trump has it in for Amazon.com founder Jeff
Bezos, who privately owns The Washington Post. At year-end,
Amazon.com was the fourth most widely held stock among hedge
funds, according to Novus. It is also a favorite among short
sellers, including David Einhorn’s Greenlight
Investors pumped another $11.87 billion into hedge funds in
February, bringing the year-to-date total to $21.83 billion,
according to data tracker eVestment. It stresses that the
early-year demand for hedge fund products is the largest since
2014. In 2017, hedge funds pulled in a net $28.62 billion for
the full year after suffering a net $48 billion in redemptions
in 2016. Long-short equity was the only strategy among 11 that
suffered net outflows last month. However, it is slightly
positive for the year and enjoyed the highest net inflows in
"February flows have historically set the stage for what to
expect for the full year," eVestment states in its monthly
report. "In 2016, when the industry experienced its first
annual net outflow since 2009, allocations in that February
were the lightest since, well, February 2009."
Institutional investors currently have more than $2 trillion
invested in hedge funds, according to a new report from data
provider Preqin. This is roughly two-thirds of the total $3.33
trillion invested in the hedge fund industry, according to
eVestment. More than 5,250 institutions — roughly 45
percent of the total institutional investor universe —
are actively invested in hedge funds, according to Preqin.
However, just three investor types account for more than half
of all institutional capital in hedge funds.
For example, public pension funds and private sector pension
funds account for 22 percent and 19 percent of institutional
capital in hedge funds, while just 24 individual sovereign
wealth funds invest in hedge funds, but account for 10 percent
of invested capital. On the other hand, the sum of the total
hedge fund investments made by endowments and foundations are
on par with sovereign wealth funds, each accounting for 10
percent of institutional capital.
Perceptive Advisors boosted its stake in Agile Therapeutics to
3.53 million shares, or 10.3 percent of the
women’s-oriented healthcare company.
Bill Ackman’s Pershing Square Holdings is down
4.1 percent for the month through March 27. This extends its
loss for the year to 9.7 percent.