Janus Capital’s Bill Gross is holding out for the “short of a lifetime” — the German 10-year bond, he said through a tweet from the Janus Twitter account. Clarifying, his comments later on Bloomberg Television, Gross explained that investors will have to wait for this rare opportunity until the European Central Bank ends its quantitative easing program. Gross predicted that the bet would pay off sometime in 2016.
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“Jon Corzine is not managing anybody’s money and has not asked a single investor to put money into a fund,” Andrew Levander, a lawyer for Corzine, told the Wall Street Journal. “He is gratified that others might want to invest with him.” This may be technically true, but to read the financial press this week it would seem to be only temporary. Many outlets reported on Corzine’s alleged plans to start his own fund with his own cash and investments from outsiders.
What we do know is that Corzine will be controversial if he does launch his own fund. “He’s about as radioactive as Chernobyl’s soil right now,” said Scott Skyrm, author of “The Money Noose: Jon Corzine and the Collapse of MF Global” and managing director at Wedbush Securities. Charges against Corzine from the CFTC remain unresolved, Skyrm notes, adding that it is “shocking that he would even have the gall to even go out there and try to manage more money.”
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“All told, there is a good chance earnings will actually shrink this year,” David Einhorn of Greenlight Capital told investors in a recent letter. “We think the market is too high if earnings have, in fact, peaked for the cycle, and we have reduced our net exposure by adding more shorts.” The letter said that short bets have been easy to find, while long opportunities are increasingly difficult.
