One Of The Last Remaining Short Hedge Funds Gains On Bearish Beer Bet; Sees Major Froth In Big Beverage Buyout

"I see daily reminders that valuation is increasingly out of favor," Skip Tague, the managing member of RBI Capital writes in his third-quarter letter to investors. "Fundamental momentum seems to matter more than valuation, particularly in the short-term. Stocks with good news go up, regardless of their valuation. The adage of 'buy on rumor, sell on news' has now become 'buy on rumor, buy on news,'" he goes on to say before noting that in a recent Wall Street Journal article, one portfolio manager was quoted as saying "I don’t care about multiples," when asked about the valuation of tech stocks.

Q3 hedge fund letters, conference, scoops etc

This momentum driven environment reminds the founder of RBI, which is  one of the last hedge funds in the world with an overall net short portfolio, of the 1990s tech bubble when investment managers took a similar approach to valuing growth stocks (i.e., they didn't bother).

If you’re looking for more timely hedge fund insight, ValueWalk’s exclusive newsletter Hidden Value Stocks offers exclusive access to under-the-radar value hedge funds and their ideas. Click here to find out more and signup for a free no-obligation trial today.


This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email and we will get back to you as quick as humanly possible

Saved Articles

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up today and get three months free

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 10/31/2019 or after next 25 20 subscribers take advantage whichever comes first – please do not share this discount with others