October 14, 2025 | 22:23
Hedge funds are offloading tech stocks at the quickest rate in twelve months, according to a Goldman Sachs client note seen by Reuters. The sell-off spans semiconductor, software, and IT service firms, marking the largest sector exodus since July 2024. Meanwhile, funds are redirecting capital to consumer staples like food, beverages, and personal care products—industries resilient to economic fluctuations. Florian Ielpo of Lombard Odier suggests US equities’ next move may hinge on long-term bond yields, though current signals remain unclear. With tech valuations 30% above their decade average and 10-year yields volatile, the market awaits a potential rate decline to shape future trends.
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Bitcoin’s Role in US Fiscal Strategy: Mallers’ Insight
In a recent video, Strike founder Jack Mallers posited that Bitcoin’s rising price is becoming essential for US fiscal stability, as stablecoin expansion drives demand for US Treasuries. He highlighted the GENIUS Act as a landmark for digital assets, though not directly tied to Bitcoin. Mallers argued that the US is fiscally trapped, unable to raise rates or cut spending, leaving dollar debasement against Bitcoin and gold as the only escape. He projected Bitcoin could hit $500,000, boosting stablecoin demand for US debt fivefold. Mallers also noted political shifts, like Bitcoin investments in retirement accounts, as tools to mitigate public resistance to dollar devaluation. At press time, BTC traded at $118,055.
read moreEU-US Trade Talks Intensify as Tariff Deadline Looms
The European Union and the United States are engaged in high-stakes trade negotiations, aiming to reach an agreement before August 1 to avoid 30% tariffs on most EU exports. In parallel, the yen gained strength against the dollar following political developments in Japan, while hedge funds adopted a bearish stance on the yen for the first time in nearly four months. The Opening Trade provides in-depth market analysis and expert insights on these unfolding events, hosted by Guy Johnson and Lizzy Burden.
read moreHedge Funds Reap Billions from Chevron-Hess Merger Bet
Several hedge funds, including Citadel Advisors and HBK Investments, are set to profit significantly from Chevron’s $53 billion acquisition of Hess Corporation after a prolonged 20-month court arbitration. Merger arbitrage strategies, which involve betting on the outcome of such deals, paid off handsomely, with Hess shares being the most widely held position in the US, totaling $10 billion. Westchester Capital’s Roy Behren highlighted the deal as their largest position in 15 years, while Morgan Stanley noted the widespread confidence in the acquisition’s success. The arbitration panel’s ruling aligned with analysts’ expectations, cementing this as a landmark win for merger arbitrage specialists.
read moreHedge Funds Shift from Banks to Consumer Staples
Goldman Sachs reports that hedge funds are cutting back on bank stocks for the second consecutive week, shifting instead to consumer staples like food and beverages. Data from Goldman’s prime brokerage desk shows funds are exiting long positions in US banks and financial services while adding short positions on European financial stocks. The trend coincides with Wall Street’s record rally facing a test as major banks announce Q2 earnings. Consumer staples, seen as recession-resistant, have become the most net-bought sector this month. This defensive pivot suggests caution among investors ahead of key financial updates.
read moreEx-Bridgewater Exec Warns of US Debt Market Slow Bleed
Rebecca Patterson, ex-chief investment strategist at Bridgewater Associates, warns that the US dollar’s 10% year-to-date devaluation—its worst in 50 years—signals deeper trouble ahead. She cites three key factors: lower front-end interest rates, capital re-allocation by both US and foreign investors, and increased hedging against dollar risk. Patterson predicts a prolonged ‘slow bleed’ out of the dollar and US Treasuries, with foreign investors likely letting short-term bonds expire without replacement. This could lead to a demand shortage for US debt early next year, exacerbated by concerns over the Fed’s independence and structural shifts in global capital flows.
read moreHow Multi-Strategy Hedge Funds Attract Top Talent
Multi-strategy hedge funds have experienced significant growth in assets under management, driven by their ability to deliver consistent returns across market cycles. While these funds offer lucrative opportunities for portfolio managers (PMs), job security remains precarious. Recruitment consultant Brian Yelvington shares insights on how PMs can secure and retain their positions in this high-stakes environment. The discussion highlights the challenges and strategies for thriving in the competitive world of hedge fund management.
read moreVirtuals Protocol Launches ACP Public Beta for AI Agents
Virtuals Protocol has officially released the Agent Commerce Protocol (ACP) in Public Beta, bridging AI and blockchain for autonomous financial interactions. ACP allows AI agents—such as trading assistants, savings optimizers, and digital VCs—to negotiate, execute contracts, and collaborate in clusters like hedge fund teams. The protocol also integrates with real-world sectors like property management through partnerships like PrimoAI. Additionally, Virtuals has introduced on-chain governance, giving veVIRTUAL holders voting power, and partnered with WhaleIntel for real-time analytics. Despite some UX challenges, the team is actively seeking community feedback, with potential rewards for valuable input. The VIRTUAL token has seen a 6.69% price increase amid the launch.
read moreTiger Cubs Hedge Funds Lead Industry in H1 Gains
The Tiger Cubs, a group of hedge funds led by former proteges of Tiger Management founder Julian Robertson, outperformed the broader hedge fund industry in the first half of the year. Their success was driven by strong stock-picking strategies, culminating in notable gains in June. This performance highlights the enduring influence of Robertson’s investment philosophy and the continued relevance of active management in volatile markets.
read morePIPE Investors Cash In, Crypto Stocks Plummet
SharpLink Gaming and Upexi experienced significant stock price declines after SEC filings made their registration-of-shares effective, enabling PIPE investors to sell shares. Both companies had previously raised capital through private investments in public equity (PIPE), with shares ballooning in value before the sell-off. Analysts note that PIPE investors, particularly hedge funds, often engage in short-term profit-taking, creating volatility. The situation highlights the risks of crypto treasury firms, whose stock prices can fluctuate wildly based on investor behavior rather than underlying asset value. Experts caution that these stocks can trade at premiums or discounts relative to their crypto holdings, similar to closed-end funds.
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