Peconic Partners, the $1.5bn hedge fund firm founded by Bill Harnisch has upped its short wagers against US listed companies in the belief that the recent stock market rally will soon run out of steam, according to a report by Bloomberg.
The fund, which recorded a 31% gain in 2023, reportedly upped its wagers against the SPDR S&P 500 ETF Trust during the final days of December as well as increasing it short positions in ‘expensive’ industrial stocks and shares of consumer-product makers who have raised prices aggressively. The fund has also cut its holding in Amazon.com Inc, one of the big winners of the 2023 bull run.
The fund’s net leverage reportedly dropped to 33% from a peak of 50% in a matter of weeks as a result, and has subsequently fallen further in the early part of 2024 to 30% as of last Wednesday’s close.
Peconic’s performance last year, saw the New York-based fund beat the market for the fourth year in a row, and annual average returns over that period now stand at 38%, three times as much as the S&P 500.
