00:26:21 · John Coogan
[00:26:21] S1: Oh, they do. Yes. So hedge fund Elliott warns of Fogo, fear of getting obliterated in the market. The $80,000,000,000 hedge fund firm posted flat returns in the third quarter and under a 2% gain this year through September. And that is almost impressive given how much gyration there's been. You know, there's been people that have been absolutely printing just being like long tech or something like that. And then there's other been... There's been hedge fund blowups and over leverages and all sorts of stuff. But Paul Singer's Elliott Investment Management compared the current state of the markets laden with debt fueled risk taking and bubbling with hype over new technologies to the roaring twenties that preceded the Great Depression. At present, virtually every alarm bell warning of a substantial bear market ahead is ringing, the $80,000,000,000 hedge fund firm wrote in an October investor letter reviewed by the Wall Street Journal. While Elliott is prepping for potential for potentially historic upheaval, its performance is lagging behind the broader hedge fund industry. Elliott's returns were flat in the first three months ending September 30 leaving its gains for the last nine months a little under 2% according to the letter. That trails a composite hedge fund index as well as the nearly 13% total return of the S and P 500 from the same gain. And even index even short term treasury bills were doing 3%. So they're underperforming treasuries. So are they being too cautious or are they you know seeing the future here? Elliott's quarterly letters are known for their doom and gloom commentary on the dominant themes of the day. Black pill hedge fund. Just black pilling in every letter. Its October message highlighted risks building in US budget deficits, persistent inflation, private credit portfolios and artificial intelligence hype. And it warned about market distortions caused by factors it said were more akin to gambling than investing, including traders using zero day options and betting on meme stocks, which they have come up against because of course Elliott is the the famous hedge fund that went up against WallStreetBets in the Robinhood GameStop saga. Singer and Jonathan Pollack, the firm's two chief executives and chief investment officers run one of the hedge fund industry's largest pools of capital.
00:28:39 · John Coogan, Jordi Hays
And a lot of people were assuming that Elliott would be completely destroyed by that saga. In fact, they closed their position. I think Ken Griffin helped out. And they've done well because they've scaled the firm since that saga and a lot of people were like, it's over for them. And that was kind of the way they were depicted in that movie, if I'm not incorrect. It avoids swinging. [00:29:01] S0: And and Elliott didn't buy a bunch of like Neo Cloud stocks like They didn't. Right? [00:29:09] S1: I I I don't know. [00:29:09] S0: Hopefully not. Because that could be that could be [00:29:12] S1: Neo Cloud's... In a tough spot. [00:29:14] S0: Obliteration scenario.
00:29:15 · John Coogan
[00:29:15] S1: Yeah. Obliteration scenario. Currently, they wrote they're focused on preserving their capital and being ready to strike if the market runs into turmoil. Over Elliott's five decade existence, fallow periods have existed but these have historically been accompanied by market turbulence and followed by periods of rare opportunities. Our goal is to be well positioned, protected on the downside and with capital to deploy into the bargains when the tide turns again. In the third quarter, Elliott's unprofitable sectors included distressed debt and portfolio hedges related to gold currencies, stocks, and interest rates. Its profitable sectors included commodities, arbitrage, and portfolio hedges related to credit. The firm sees opportunities in activist investing, in healthcare companies, producing energy opportunities, and eventually buying from forced sellers in dislocated credit markets. Its recent activist positions include stakes in PepsiCo and Synopsys, a chip design software maker. So interesting. I just like the new coinage. FOGO, fear of getting obliterated. The actual quote here from the letter, so many factors have lined up to cause this great boom that it might take disruption in only one or two of them to shift this momentum into reverse leading to a cascading self reinforcing unwind of this bull market and an abrupt change from FOMO to FOGO, fear of getting obliterated. So FOMO drives the market upward. Everyone thinks, I gotta get in. I just saw somebody print a three x on Nvidia, a 10 x on Micron. I gotta get in. I don't wanna miss out. FOGO, if everyone's getting blown up, doesn't matter what you're in, you're gonna sell your dollar, sell your gold, sell your crypto, sell everything. That's what they're worried about. So some black pilling from the folks over Elliott.
00:30:53 · Jordi Hays, John Coogan
[00:30:53] S0: Well, it's a bull market for the California Institute for Immunology and Immunotherapy. The institute's co founder, Gary K. Michelson, put a proposition Prop 38 on the ballot that passed, which gives his three person nonprofit 4,200,000,000 from the public. Really? Ahmad over at Mercury says something feels a bit iffy about California Prop 38 doing a popular vote proposed by a three person nonprofit that gives said nonprofit 4,200,000,000. [00:31:31] S1: That's a lot of money. [00:31:32] S0: It is a lot of money. Of course, I'm sure they're gonna redistribute hopefully like 99.9% of those funds to various research But still it seems like this one simple trick if you're a nonprofit Yeah. Is like get a... [00:31:49] S1: Well, the real move would be do that and then do the for profit conversion. Right? [00:31:52] S0: Trey says, man raised his series a via ballot. Yeah. Honestly, this is more like a series f. Yeah. More like
00:31:52 · Jordi Hays, John Coogan
[00:31:52] S0: Trey says, man raised his series a via ballot. Yeah. Honestly, this is more like a series f. Yeah. More like [00:32:01] S1: But if he does conversion, he could be paying a big dividend soon, potentially. Let me tell you about console. Console builds AI agents that automate 70% of IT, HR and finance support giving employees instant resolution for access requests and password resets. Ferrari lifts guidance again on strong demand for car customizations. Fear of missing out is back in force over at Ferrari. The company's order book now reaches into 2028. That's Tesla Roadster competition territory because the Roadster's not shipped until 2028, but some of these Ferrari Taylor Made's are going out to 2028. And it still has two more launches to come this year. What are they gonna launch? [00:32:44] S0: They're gonna announce the... [00:32:46] S1: Manual V12 Luche. [00:32:47] S0: Right? No. I think they're gonna announce the two nine six challenge the street Yep. Street legal version of that. [00:32:55] S1: Okay. Maybe f f 80 variant? [00:32:58] S0: Are they still... Do they count the 12 c Manuela? [00:33:02] S1: Oh. That's the... I I think I thought that would already have been... Because that's been reviewed. Like, I I've seen reviews of them. I just don't know what [00:33:09] S0: the journal is counting as a launch versus
00:33:09 · Jordi Hays, John Coogan
[00:33:09] S0: the journal is counting as a launch versus [00:33:11] S1: Versus, like, a release or a leak or like a a Announcement. Case. Yeah. Whatever. Well, let's let let's get some context on Ferrari. Ferrari again lifted its full year guidance slightly as demand for car customizations remain strong and deliveries of newer models has ramped up in the third quarter. The Italian luxury sports car maker said Tuesday that it expects revenue of around 8,560,000,000 this year, up from a previous estimate of around €7,600,000,000. It forecast adjusted earnings up to €2,290,000,000. Margins are at 30%. They're going up. The company said it was benefiting from stronger personalization than initially expected. Lower currency headwinds and newer, more profitable models, deliveries of our F80 supercar and personalizations led by the Ferrari two ninety six Speciale family support our robust financial growth. Our order book now reaches into 2028 and we still have two more launches to come. It shipped 3,368 vehicles to customers this quarter, 33 fewer than a year earlier, but I'm sure the average price is up. So deliveries of its Amalfi, the two ninety six Speciale, the 12 Cylindri Spider and the Purosangue increased while the eight four nine Testarossa and the two nine six Speciale Aperta continued to ramp up and the eight four nine Testarossa Spider started deliveries. Shipments of the f 80 also progressed in line with plans. What is your take on the eight four nine Testarossa? It's a SF90 under the hood, but do you like the styling? [00:34:51] S0: I think it looks amazing.