Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (49394)	5/4/2000 4:53:00 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 99985

Something worth considering... Message 13569926 GZ

To: AllansAlias who wrote (49394)	5/4/2000 5:06:00 PM
From: Michael Watkins	Read Replies (2) \| Respond to of 99985

VIX continues its ramp; most sectors I look at are having trouble in fact most sector charts look terrible and poised on the brink. If there isn't a rally tomorrow, things are in trouble. And 3 billion isn't all the money in the world, but money coming out speaks to more selling.... ---------- Soros Says Fund Investors May Pull Up to $3 Billion (Update3) By Gavin Serkin London, May 4 (Bloomberg) -- George Soros said his hedge funds could suffer as much as $3 billion in redemptions after two top money managers, Stanley Druckenmiller and Nicholas Roditi, resigned last week. ``Investors may pull back up to $3 billion, no more,'' Soros said in an interview before a luncheon presentation in London. They haven't yanked ``very much'' so far of the $14.2 billion that Soros's funds oversee, he said. Soros, 69, decided to overhaul his hedge funds after withdrawals and wrong-way bets on computer and biotechnology stocks and the euro reduced Soros Fund Management LLC's net assets by $5 billion. The declines prompted the departures of Druckenmiller, manager of the $8.5 billion Quantum Fund, and Roditi, who ran the $1.2 billion Quota Fund. Historically, Soros, whose Quantum Fund has averaged returns of 32 percent since he founded it in 1969, made much of his cash on so-called macro bets -- making large wagers on the direction of bonds and currencies. Soros earned worldwide renown for breaking the Bank of England's defense of the pound in 1992, and today called on the European Central Bank to support the euro. With Druckenmiller gone, Soros said he's renaming the fund the Quantum Endowment Fund and relying on internal and outside managers to run it. He'll scale back on macro bets, which he expects will reduce annual returns to 15 percent. ``I felt the fund was too big and Stanley Druckenmiller said the fund has been impossible to manage for years,'' Soros said. Reducing Risks Soros said he'll disclose within two months more details about how the fund will invest. He declined to be more specific. It's possible his group's assets may reach peak asset levels again by attracting investors who are comfortable with a more conservative approach, Soros said. Now mainly a philanthropist, Soros became the second celebrity investor in the past five weeks to bow to momentum- driven stock markets that he said defied conventional risk measures. Julian Robertson, until last year the second-biggest hedge fund manager after Soros, shut his Tiger Management LLC in March. Druckenmiller, 46, who served as chief investment strategist of Soros Fund Management, said last week that the New York-based firm has already raised enough cash to cover redemptions, even if every outside investor opted to leave. While Soros is reducing risk, he said his funds may still make some macro bets in ``smaller amounts.'' Euro and Russia One such wager could be on a rising euro. The European Central Bank ``should intervene'' to bolster the falling currency, said Soros. The euro fell to a record 88.53 U.S. cents today, and is down more than 23 percent since its inception on Jan. 1, 1999. ``Instead of raising interest rates to support the currency,'' intervention would be more effective, Soros said. The ECB ``should demonstrate cohesion'' in its policy-making but central bankers ``seem reluctant to do so,'' he said. The central bank last week raised its benchmark interest rate by 25 basis points to 3.75 percent. Soros also was critical of the European Union. ``I've been quite amazed at what an internal crisis it's been,'' he said. ``They really can't their act together.'' As for stocks, ``we're probably in a bear market, although we don't know it,'' Soros said. ``In any bear market, you have pockets that go against the market.'' Soros said he's ``very bullish'' on Russian stocks. Russia's RTS index has gained 28.6 percent this year in U.S. dollar terms, ranking among the world's top-performing stock markets.