There's been debate for quite a while about whether tech stocks have been in a bubble or not. Carlson Capital is firmly in the bear camp on tech, and for good reason. The firm's Black Diamond Thematic fund was in the red for the third quarter but remains in the green for the year. The hedge fund was down 1.73% net for Q3 but remains up 3.02% year to date.
If the plunge in tech stocks we've seen over the last week or so continues, it could mean good things for the Blackg Diamond fund. On the other hand, the rest of the stock market is in the red today too, so it's just generally not a great day to own equities, although value investors probably see plenty of opportunity for buying.
Shunning the momentum trade
In their September letter, which was obtained by ValueWalk, Blue Diamond portfolio managers Richard Maraviglia and Matthew Barkoff noted that the last five years have been marked by momentum and excess, but they have declined to participate. Now after spending years fighting the momentum, they seem confident that the market is finally seeing the beginning of the end of the excesses.
The Black Diamond fund is long on
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