Dan Loeb who is one of the most respected activist hedge fund managers, has revealed how he has how he positioned his portfolio for the President Donald Trump administration. Loeb wrote in the investor letter Wednesday that starting the morning after the election, he took immediate steps to reorganize the portfolio around investments that he believed would benefit from Trump’s stated policy objectives. It is important to note that much like billionaire investor Stan Druckenmiller, Loeb is optimistic on the U.S. economy under Trump. Loeb believes that Trump will bring forth an acceleration of economic growth at home since the new President is pro‐business. To take advantage of Trump’s agenda, Loeb increased his fund’s financials exposure to 11.8 percent one month after the election, compared with its 4.4 percent exposure on Nov. 8.
U.S. stock index futures pointed to a lower open on Thursday as traders eyed a big day of earnings and digested dovish comments by BOE. Conglomerates such as Estee Lauder, Delphi Automotive and International Paper are among the companies that are due to report their final quarter earnings before the bell; while Amazon, Visa and GoPro are among companies set to report after the bell. It is worth noting that data released yesterday has revealed that initial jobless claims fell 14,000 to 246,000 while the print is below a consensus estimate of 250,000. Fourth-quarter non-farm productivity rose 1.3 percent. Investors also looked ahead to the January jobs report on Friday, morning.
European stocks dipped on Thursday after the Bank of England announced that it aims to keep its monetary policy unchanged, but raised its growth forecasts for 2017. The FTSE 100 rose however by 0.7 percent as of 14:00 GMT while the sterling, which had hit a seven-week high ahead of the BoE announcement, dropped 1.2 percent against the euro as of 14:00 GMT. The BoE raised its growth forecasts despite Britain’s decision to leave the European Union while it also revised down its inflation forecasts for the next three years. It is also important to note that the U.K. government is publishing a white paper to prepare for Brexit negotiations later this Thursday.