In March 2015 a short trade with regards Janus Capital (JNS) was mentioned here, months after Bill Gross arrival made JNS stock price to fly sky-high on hopes of big amounts of AuM inflows coming from Pimco Total Return Fund: "To sum up, JNS stock price eventual return to $12-$13 is just a question of time and patience as investors lose faith in Bill Gross's lure and ability to attract AuM. Monitoring Janus Constrained Bond fund performance and Pimco Total Return bond fund withdrawals' destination is key to manage this short play and avoid short-term short-squeezes. " The AuM calculator table displayed almost a year ago is shown below and basically depicts how JNS was pricing more a total figure of new AUM within the $135bn-$180bn range; tantamount to 60%-80% AuM of the Pimco Total Return Fund at the time: Reality Bites One year later JNS stock price has suffered a remarkable reality-check due to Bill Gross weak performance figures and inability to capture only $12.5bn out of the expected $135-$180 bn when he joined JNS in September 2014. As a result, JNS market cap has been slashed by a quarter from $18 to currently $12-$13 underperforming a flattish S&P 500 during the period. Therefore, investors have recovered their common sense in JNS and now is a good time to exit this short trade, lock-up some profits and avoid a short-squeeze event as suggested by several technical reversal signals and recent positive liquidity shocks. Disclaimer: the blog is intended to convey investment ideas and, market views , yet they are not a solicitation or recommendation to buy/sell/hold securities but merely investment ideas that should NEVER serve as the basis of the reader trading decisions. This website and its reports are for general information purposes and any investment decision should be discussed with a financial adviser before taking place. The investment ideas displayed here could have been implemented at an earlier date than the one stated at the blog's post date; for which reason the latter dates do not represent accurate and timely entry/exit points in order to protect those investors with whom the blog author has a fiduciary agreement.
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Carlos Salas
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