New numbers show hedge fund billionaires on hard times. Lily Jamali reports.
U.S. stock markets may be hitting one record high after another, but big-name hedge funds don't like what they're seeing. The latest batch of regulatory filings show where big names like George Soros, bond king Jeffrey Gundlach and hedge fund titan David Tepper placed their bets in the second quarter. Reuters correspondent David Randall says the numbers tell the story of some unhappy billionaires. SOUNDBITE: DAVID RANDALL, CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "A lot of fund managers are saying maybe this market is fully valued. It's getting more expensive and I'm going towards safety now instead." ...playing defense by moving their money into telecoms, utilities, and consumer staples. Not everyone's avoiding stocks though. The oracle of Omaha, Warren Buffett, raising his stake in Apple by more than 50 percent. Still, considering many hedge funds take a 2-and-20 cut - that is, managers get 2 percent of what you invest and 20 percent of any returns. Investors might have expected the industry overall to make less conservative moves and earn more aggressive gains. SOUNDBITE: DAVID RANDALL, CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "Hedge funds don't have the best track record. Through July, they were up 3 percent which is still 4 percent less than the S&P 500. so to make up that space, it seems strange to take a more defensive stance than to say I'm going to double down." The benchmark S&P 500 is already up more than 7 percent this year, and all three major market indexes - including the Dow Industrials and the Nasdaq -- closed Monday at record highs.