Billionaire Paul Marshall’s Hedge Fund Just Made This Historic Move on Value Stocks
- Michelle Jenner
- Apr 28, 2022
- 1 min read
His $24 billion Eureka hedge fund within Marshall Wace has loaded up on bank and financial stocks, while selling shares that were fueled by central banks printing money over the past decade or so. The shift, prompted by potential interest rate hikes, means the fund is now net long value and short on growth stocks for the first time since 2011, according to an investor letter seen by Bloomberg News
Marshall joins the great rotation in the stock market as rising bond yields, soaring inflation and Federal Reserve tightening bolster the prospects of cheap-looking equities. Meanwhile, racy meme stocks and technology shares have rapidly reversed last year’s gains. While the billionaire is not predicting a bear market, he sees a new set of winners emerging.
“Given the amount of insulin that has been pumped into the body economic, markets will be faced with a major challenge of sugar-deficiency,” Marshall told clients. “It does point to a shift in market leadership away from the beneficiaries of infinity-and-beyond-stimulus and towards the beneficiaries of rising interest rates.”
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