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Markets

As stocks gain, hedge funds retreat

Opening sequence

Opening sequence

Markets

As stocks gain, hedge funds retreat

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16:44
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COMING UP:As stocks gain, hedge funds retreat

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Transcript

00:00:00
>> US stock markets may be hitting one record high after another, but big name hedge funds don't like what they're seeing. The latest batch of regulatory filing show where big names like George Soros, bond king Jeffrey Gundlach, and hedge fund titan David Tepper placed their bets in the second quarter.
00:00:18
Reuters' correspondent David Randall says the numbers tell the story of some unhappy billionaires.>> A lot of fund managers are saying maybe this market's fully valued, it's getting more expensive, and I'm gonna go toward safety now.>> Playing defense by moving their money into telecoms, utilities, and consumer staples, not everyone's avoiding stocks though.
00:00:38
The Oracle of Omaha, Warren Buffett, raising his stake in Apple by more than 50%. Still, considering many hedge funds take a two and 20 cut, that is, managers get 2% of what you invest, and 20% of any returns. Investors might have expected the industry overall to make less conservative moves and earn more aggressive gains.
00:00:58
>> Through July, the average fund was up almost 3%, which is still four percentage points less than the S&P 500 over all. So to make up that space it seems strange to say, I'm gonna take a more defensive stance as supposed to, I'm gonna double down.>> The benchmark S&P 500 is already up more than 7% this year, and all three major market indices, including the Dow Industrials and the NASDAQ close Monday at record highs.