In October, Moab Capital Partners made some smart “Trump trades” ahead of the Republican’s victory in the presidential election, notably shorting stocks with exposure to Mexico. But the New York-based long/short hedge fund may be shifting its strategy after some of its alpha shorts have soured in the aftermath of the strong market rally since Donald Trump’s victory with little correlation to underlying company fundamentals.
In his monthly letter to investors, a copy of which was reviewed by ValueWalk, fund founder and portfolio manager Michael Rothenberg said the fund would persist with some short bets, but would strategically eye long positions because of the recent circumstance and outlook.
“Markets have continued their rapid rise since the election. When buying is...
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