The Daily Alpha: Real Talk on Greece, Wikileaks, China and Dan Loeb

May 24 2017 | 6:11pm ET

Today we discuss investing at the right place at the right time, the 1dangers of shorting China, “teen heart throb” Dan Loeb and Babe Ruth’s contract.

Hair of the Dog

Shot: May 10 – “I'm still waiting for the first 'Anthony Kennedy won't retire so a guy who went Nixon on the FBI director can replace him' hot take.”

Chaser: May 21 – “Could Trump turmoil affect Justice Kennedy's retirement plans?”

Quotes of the Day

“At the moment everything in Greece is going exactly in the right direction.”

Mark Dowding is a manager at BlueBay Asset Management, a fund that invests in public and private debt markets and oversees $55.5 billion.

He’s cheering the fact that investing in Greece right now is turning out fabulously.

And why not…

The entire investment thesis right now of Greece and its debt reminds us of this Conde Nast cartoon from 2002.

Says the CEO to his board: "And so, while the end-of-the-world scenario will be rife with unimaginable horrors, we believe that the pre-end period will be filled with unprecedented opportunities for profit."

Someone will be left holding the bag on Greece…

"I don't regret my actions, because they led me on a really interesting journey."

If you get one article to read today about anything, make it this one about former U.S. government lab worker Jason Scott Katz who made a mistake by helping Wikileaks….

That mistake led him to move to Iceland and form the Pirate Party.

Told you it was the article of the day to read.

"There have been several recent events which we believe confirm our investment positioning and thesis."

There’s another saying…

“The markets can remain irrational longer than you can remain solvent.” Perhaps Millennium Management should have heeded that warning. This fund lost 62% betting against China for reasons that seem foolish at best.

“Once again, it’s a very good time to be in activist defense.”

This is becoming our motto… we’ve said this in recent weeks.

We’ll repeat it today.

The latest battle is happening at Honeywell, a firm facing “spinoff” demands for its aerospace business from Daniel Loeb. The company will decide whether to take his advice later this fall.

For those of you who don’t know who Daniel Loeb is though… be sure to read this 2015 biography from Business Insider that reads more like a teen heart-throb book than a professional article…

Seriously… this piece is on how nihilists become nihilists.

You won’t know how you feel about anything anymore by the time you are done.

"This is the Curse of the Bambino. It transcends everything. It changed America."

The contract that sent Babe Ruth from the Boston Red Sox to the New York Yankees is heading to auction.

Consider this the ultimate alternative investment.

ESPN’s Darren Rovell offers his insight on the original contract of the contract.

It last sold for $996,000 in 2005.

But that’s not the reason to read this.

The real fun comes at the bottom, where Rovell points out that Lelands.com is also selling Babe Ruth's 1927 World Series ring in the same auction.

Rovell says that people have speculated that it is owned by Charlie Sheen.

If that’s the case, one should request information on where that ring has been before making a bid.

Useless Information: We forgot how much Radiohead’s Creep sounds like The Hollies’ “The Air I Breathe.”

Hedge Fund Reading List:

Greenwich Time: Greenwich, Hangzhou exchange gifts, become sister cities

The Street: Leon Cooperman Granted Exemption to Keep Raising Money for Hedge Fund

Newsline: Goldman: Allergan, Monsanto Among Hedge Funds' New Favorite Stocks

Forbes: Does OPEC Need $80 Oil?

The Globe and Mail: Investors turn two shades of green in fossil-fuel strategies

Grab the Newsletter 

The Daily Alpha is published on Finalternatives.

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Be sure to check out the award-winning Modern Trader and a very special offer for first-time readers and follow @moderntradermag. 

You can also pick up a copy of the June Hedge Fund issue at Barnes & Noble.

Garrett Baldwin is the voice of the The Daily Alpha, the features editor for Modern Trader magazine, and the author of The Man with The Big Red Balloon. 


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