U.S. markets closed

  • S&P 500

    3,819.72
    -50.57 (-1.31%)
     

  • Dow 30

    31,270.09
    -121.43 (-0.39%)
     

  • Nasdaq

    12,997.75
    -361.04 (-2.70%)
     

  • Russell 2000

    2,207.79
    -23.72 (-1.06%)
     

  • Crude Oil

    60.69
    -0.59 (-0.96%)
     

  • Gold

    1,707.00
    -8.80 (-0.51%)
     

  • Silver

    26.05
    -0.34 (-1.28%)
     

  • EUR/USD

    1.2060
    -0.0007 (-0.06%)
     

  • 10-Yr Bond

    1.4700
    +0.0550 (+3.89%)
     

  • GBP/USD

    1.3935
    -0.0018 (-0.13%)
     

  • USD/JPY

    107.0330
    +0.0310 (+0.03%)
     

  • BTC-USD

    50,187.35
    +2,116.23 (+4.40%)
     

  • CMC Crypto 200

    1,014.06
    +25.96 (+2.63%)
     

  • FTSE 100

    6,675.47
    +61.72 (+0.93%)
     

  • Nikkei 225

    29,559.10
    0.00 (0.00%)
     

Rocket Falls as RBC Suggests Reddit-Driven Rally Is Overdone

  • Oops!
    Something went wrong.
    Please try again later.
Paul Jarvis, Suzannah Cavanaugh and Felice Maranz
·3 min read
1 / 2

Rocket Falls as RBC Suggests Reddit-Driven Rally Is Overdone

  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) -- Rocket Cos. fell Wednesday, halting a three-day rally driven by sentiment that the home-loan provider was the latest retail-trader favorite for its high short interest.

The stock fell 33% to $28.01, its steepest decline ever, after RBC Capital Markets downgraded its recommendation to sector perform from outperform, with a price target that suggests a 28% drop from Tuesday’s close. While mortgage demand is expected to continue to boost growth, that is now more than being captured in Rocket’s current valuation, analyst Daniel Perlin said in his report.

Rocket hit an all-time high Tuesday after CNBC mentioned the company as a possible new target among traders discussing stocks on Reddit. The stock has more than doubled since it went public in August and now has a market capitalization of about $60 billion.

“It seems heavy short interest in the stock was exposed, driving a jump at the open and the dam burst once heavy open interest in $30 call options were triggered, fueling another dealer gamma squeeze like we have seen with GameStop,” Neil Wilson, chief market analyst for Markets.com, said in emailed comments.

Rocket carries 46% short interest as a percentage of float, according to S3 analytics. The analytics provider published a report Tuesday identifying exceptionally high trading and option volume for the Detroit-based company’s stock, alongside a large amount of short selling into the rally.

“Evidence of this short squeeze can be shown by the fact that the price was able to drop just as quickly as it moved up, proving that the move was was likely due to artificial demand from short sellers having to buy the stock back once they received margin calls on their positions,” said Jake Wujastyk, chief market analyst at TrendSpider.

Rocket’s jump may have been a matter of time, according to Bloomberg Intelligence analyst Ben Elliott. “Rocket has been a fringe meme stock for a while, so I figured something like this would happen eventually,” he said.

The company’s fundamentals, however, don’t support the 16-17x price-to-forward earnings multiple implied by its March 2 close, Elliott said in a note. “Yet surprisingly resilient earnings may support a re-rating of the massive, tech-focused, nonbank lenders like Rocket and UWM if they keep performing amid rising rates.”

Rocket’s gains, however, signal more than just Reddit mania. With a market value that’s worth more than some of its peers combined, the company has cemented itself as a heavyweight in the emerging mortgage tech sector following an August IPO that was bolstered by retail investors and housing market tailwinds.

Its peers have also gained: Mr. Cooper Group Inc. is up 9.1% this year, while newly-listed loanDepot Inc. has surged 44% since it went public last month.

(Updates share price moves throughout.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Recommended Stories

  • Rocket short sellers regroup as stock tumbles over 30% after surge

    A wild rally in shares of Rocket Companies that saw the stock rise 70% in an apparent short squeeze has attracted fresh bets that the stock price will decline. Shares of Rocket, the parent of mortgage lender Quicken Loans, were down 31.7% to $28.43 in afternoon trading on Wednesday. The heavily-shorted stock had surged more than 70% on Tuesday in a move that analysts said was likely sparked by bearish investors unwinding bets against the stock as its share price surged.

  • Rocket Stock Is Sliding After Its Incredible Surge. Here’s Why.

    Rocket stock headed back to Earth on Wednesday, after shooting up 71% the day before. Analysts say the company's strong fundamentals are likely already reflected in the stock price.

  • Why Rocket Companies stock surged on Tuesday

    Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down Rocket Companies surge.

  • Rocket Companies: Even Rockets Run Out of Gas Eventually

    Rarely has a stock lived up to its name in such fantastic fashion. On Tuesday, shares of personal and mortgage finance company Rocket Companies (RKT) shot very close to the moon, up 71% in a single day of frenzied trading on no actual news of note. Granted, Rocket did report earnings fairly recently, announcing revenue growth of 144% in its fiscal fourth quarter, nearly tripling its net income, and predicting that in Q1 2021, it will close "loan volume of between $98 billion and $103 billion, or an increase of 90% to 99%." But again, that was the news last week. So far this week, literally nothing of substance has happened that would explain why Rocket Companies stock should be flying so high. Presented with this conundrum, RBC Capital analyst Daniel Perlin reluctantly concluded that it is time to downgrade Rocket stock to Sector Perform (i.e. Hold) with an unchanged $30 price target. (To watch Perlin's track record, click here) The 5-star analyst argued that Rocket's Q4 numbers last week were "strong," validating his "Street-high" price target on the stock, but he called Tuesday's volatility "abnormal" and warned investors that at its closing share price of $41.60, the risk in Rocket stock is now "skewed to the downside." Now, if you're an investor in Rocket, the fact that the company's biggest fan on Wall Street has just shambled off to join the bear camp, predicting a 28% decline in the company's share price, that's probably a bit disconcerting -- but don't lose heart entirely. In Perlin's view, all the factors he previously highlighted as favoring Rocket's business remain in effect. "The mortgage market remains elevated," advises the analyst, "originating volumes were very strong in Q4," and this loan volume will probably close to double in Q1 2021. That will continue to benefit Rocket with "positive operating leverage," and while this trend is close to peaking, Perlin believes it will last "throughout FY21" at least, and possibly continue for a time into 2022 as well. Nevertheless, after Rocket's remarkable rise Tuesday, the analyst seems to think that now is a good time to declare victory and go home. At first glance, it may seem an overreaction. After all, based on the $4.10 in "adjusted diluted" earnings Rocket reported for fiscal 2020, even Tuesday's astonishing leap in stock price leaves Rocket stock trading close to 10x that adjusted figure. But to put a point on the analyst's pessimism about future stock price gains, consider: Perlin guesstimates that revenues that topped $16.4 billion in 2020 will decline by about 21% in 2021 ($13.4 billion) before falling a further 28% ($9.7 billion) in 2022. That trend already doesn't look particularly propitious. What's more, Perlin estimates that Rocket's profits will decline by about 35% this year as compared to last ($2.66 per share) -- and then slacken a further 38% to $1.65 per share in 2022. Perlin is not alone in playing it safe on RKT, as TipRanks analytics exhibit the stock as a Hold. Out of 10 analysts tracked in the last 3 months, 3 say Buy, 5 suggest Hold, and 2 recommend Sell. With a potential loss of ~38%, the stock’s consensus target price stands at $25.67. (See RKT stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • Rocket Stock Has Taken Off -- Here's What You Need to Know About the Business

    While 2020 was the best year for mortgage originators in almost 20 years, the stocks of the mortgage originators have disappointed. Investors are pretty much unwilling to pay more than a single-digit multiple for these stocks, and many have price-to-earnings ratios below 5. Assuming this isn't entirely because Rocket has captured the attention of the WallStreetBets Reddit group, what's going on?

  • Biggest Inflation-Hedged ETF Suffers Record $944 Million Outflow

    (Bloomberg) -- The world’s biggest inflation-protected bond ETF has been hit by its largest outflow on record, the latest sign that the cross-asset reflation frenzy is cooling.Investors just pulled $944 million from BlackRock Inc.’s $26.3 billion iShares TIPS exchange-traded fund (ticker TIP), according to data compiled by Bloomberg. That’s by far the largest withdrawal in the more than 17-year history of the product, which buffers investors in government debt against growth in consumer prices.From oil to copper, investing strategies betting that the U.S. economy will run hot this year are losing a little steam after the recent boom spurred by fresh stimulus and the vaccine rollout.The TIPS ETF was trading at the highest levels on record before its mid-February retreat, with assets having peaked at more than $27 billion.Reflation trades have been on a tear across global markets this year, with everything booming from small-cap companies and energy stocks to price-protected debt strategies. But historic valuations and the long journey to a post-pandemic world are giving some investors pause for thought.Meanwhile, the selloff in long-dated nominal bonds -- among the biggest losers when inflation breaks out -- is easing. Some $755 million was added to the iShares 20+ Year Treasury Bond ETF (TLT) in the past three sessions, according to data compiled by Bloomberg.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Asian Woman Held at Gunpoint, Robbed of Over $3,000 in NYC Home Invasion

    An Asian woman saw a gun pointed at her head in her own apartment in Flushing, Queens last week. The incident, which was caught on surveillance video, occurred around 6:40 p.m. on Feb. 26. The invaders managed to flee the victim’s home with $3,000 in cash, two iPhones, a Louis Vuitton purse and some credit cards.

  • Rocket Companies stock soars 70% on speculative trading, mirroring GameStop rally

    Will a stock in Detroit-based Rocket Companies now soar to the stratosphere simply due to short-squeeze speculation?

  • Canadian banks raise some mortgage rates, lower others

    For the first time since the start of the COVID-19 pandemic, Canadian banks raised rates on some fixed mortgages. TD Bank, National Bank of Canada, HSBC, Royal Bank, Scotiabank, and BMO made moves in response to a rising yield on the Canada 5-year bond. Posted rates remain the same, but special rates that most clients actually pay ticked up between 15 and 25 basis points on 5-year terms.

  • Snowflake’s Stock Remains Volatile After a Better-Than-Expected Quarter

    Sales at the cloud-based software firm were up 117% in its latest quarter, though the company forecast a slightly disappointing outlook for the current year.

  • Zoom Shares Surge Over 10% On Solid Q4 Earnings, Upbeat Guidance

    San Jose, California-based communications technology company Zoom’s shares rose over 10% in extended trading on Monday after the video conferencing platform provider reported better-than-expected earnings in the fourth quarter and issued a solid outlook for the first quarter.

  • Oil Surges After Record U.S. Fuel Supply Drop From Deep Freeze

    (Bloomberg) -- Oil jumped the most in more than a week after a U.S. government report showed a record drop in domestic fuel inventories from the aftermath of a deep freeze that shuttered refineries in several states.Crude futures in New York climbed 2.6% on Wednesday, snapping a three-day streak of losses. U.S. gasoline inventories tumbled last week by the most since 1990 after a polar blast wiped out more than 5 million barrels a day of refining capacity in late February along the U.S. Gulf Coast, according to Energy Information Administration data. Crude stockpiles swelled with refineries still shut.See also: Record U.S. Gasoline Decline Raises Prospect of $3 Pump Prices“The market expected some noise from the storm’s lingering effects,” said Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “Absent the magnitude of the changes, things came in pretty much as expected with the enormous product draw more than offsetting the record crude build.”The U.S. data also showed gasoline supplied, a gauge for demand, surged the most since May, supporting those who say the oil market needs more barrels from producers as OPEC+ heads into a meeting on Thursday. The group is poised to agree on a coordinated production hike to cool the rapid surge in crude prices.Oil has rallied more than 25% so far this year, shepherded by the OPEC+ alliance’s continued production curbs and expectations for demand to meaningfully rebound as Covid-19 vaccines are rolled out worldwide. That strength though has paved the way for the alliance to unleash more barrels, with OPEC Secretary-General Mohammad Barkindo saying Tuesday that both the wider economic outlook and oil-market fundamentals continue to improve. The group could return the bulk of the 1.5 million-barrel-a-day hike that’s up for debate.There are two parts to the potential production ramp-up that OPEC+ will discuss. The first is whether the cartel will proceed with a 500,000-barrel-a-day collective increase in April. The second is the question of how Saudi Arabia could phase out its extra reduction of 1 million barrels a day.“Elevated price levels will incentivize the cartel to taper their output cuts, but given the uncertainty, the market is likely to be on edge heading into tomorrow’s meeting,” TD Securities commodity strategists including Bart Melek said in a note. In the U.S., the decline in both gasoline and distillate inventories coincides with a spate of refinery outages left in the wake of the cold snap: Plants processed crude at the lowest level on record last week. While some refineries, like Motiva Enterprises LLC’s Texas site, have been able to restart key processing units, many that shut due to the freeze are still in the process of making repairs or restarting operations.Meanwhile, much of the crude production hit by the cold temperatures has been restored. Crude supplies grew by a record 21.56 million barrels, signaling weak demand from refiners at the time.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • IRS Says Buying Crypto With Fiat Does Not Trigger Tax Reporting Rules

    The IRS has narrowed the breadth of its new crypto reporting question.

  • Vir Stock Craters On Weak Results For Glaxo-Partnered Covid Treatment

    Emerging data cast doubt on the effectiveness of Vir Biotechnology and GlaxoSmithKline's Covid-19 treatment, leading Vir stock to plummet Wednesday. Shares fell more than 27%.

  • U.S. Inflation Expectations Hit Decade High as Yields Resurge

    (Bloomberg) -- U.S. Treasuries tumbled anew on Wednesday, driving long-maturity yields to their highest levels this week and pushing up inflation expectations as traders continued to price in a quicker economic rebound from the pandemic.Benchmark 10-year Treasury yields surged as much as 10.3 basis points to 1.495%, a move reminiscent of last Thursday’s startling selloff in government debt. Meanwhile, a market proxy for the anticipated annual inflation rate for the next half-decade exceeded 2.5% for the first time since 2008 -- aided by climbing oil prices. At least part of the trigger for the fixed-income losses came from the U.K., which said it will sell more bonds than expected as its economy emerges from a deep recession.Also in the background was Joe Biden’s announcement that enough doses of virus vaccine should be available to every American adult by the end of May, and a report Wednesday that the president would moderate certain stimulus demands to try to win support for his virus-relief bill. Rising yields have started to draw the attention of Federal Reserve officials, leaving all eyes on an appearance Thursday by Chair Jerome Powell.Among other things, “the stimulus package is likely to go through and the economy is reopening,” said Michael Franzese, managing partner at MCAP LLC in New York. “The battle is on between rates going higher super-fast and a Federal Reserve that’s trying to keep the market stable and may try to slow the momentum of the reflation and economic-rebound trade into something more manageable.”Early inklings of inflation were evident in data from the Institute for Supply Management this week: Measures of prices paid jumped to their highest levels since 2008.A large trade on Wednesday in 10-year Treasury options and accompanying futures selling also fueled the leap in yields, as did heavy corporate bond supply.The rates market is not yet done fully pricing in robust U.S. economic growth, which would entail a 10-year yield trading around 1.90%, said Mark Heppenstall, chief investment officer of Penn Mutual Asset Management in Horsham, Pennsylvania. That’s the level last seen in January 2020, two months before pandemic fears started prompting forced shutdowns in the U.S.Beyond rising nominal and breakeven rates, “the dynamic rise in the 10-year real, inflation-adjusted yield we’ve seen is the market partly adjusting to a faster-than-anticipated pace of rate normalization by the Fed,” he said.The timing of the Fed’s first rate hike, known as liftoff, and subsequent rate hikes haven’t been factored in, making Treasuries vulnerable to a further selloff in the weeks ahead, according to Heppenstall.(Adds reference to Fed rate hikes in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • US STOCKS-Wall Street drops as high-flying tech stocks retreat

    The Nasdaq ended sharply lower on Wednesday after investors sold high-flying technology shares and pivoted to sectors viewed as more likely to benefit from an economic recovery on the back of fiscal stimulus and vaccination programs. Microsoft Corp, Apple Inc and Amazon.com Inc dropped more than 2%, weighing more than any other stocks on the S&P 500. The S&P 500 financial and industrial sector indexes reached intra-day record highs.

  • The oil market’s wild pandemic ride is about to take another turn

    The oil industry is no stranger to boom-bust cycles, but the pandemic has been its wildest ride to date, and on March 4 it’s due to take another turn when OPEC meets to consider rolling back production cuts. As the world’s cars and airplanes idled, global oil demand bottomed out in April at levels 16.4% below the previous year, dragging the price into negative territory for the first time. White-knuckling through it all has been OPEC, the 13-member cartel that dictates quotas for most of the world’s biggest oil-producing countries (notably excluding the US).

  • Galaxy Digital, CoinShares Back Bitcoin Mining Intermediary Startup

    Compass raised $1.7 million from a cadre of cryptocurrency businesses and investors.

  • SPAC Boom and SoftBank’s Mega-Rally Boost Masayoshi Son’s Billions

    (Bloomberg) -- Few fortunes are as volatile as Masayoshi Son’s.The SoftBank Group Corp. founder was briefly richer than Bill Gates at the start of the century before tech stocks crashed. In March 2020, as markets sank under Covid-19 and questions swirled over SoftBank’s investments, his wealth dipped to $8.4 billion, the lowest since 2016.Less than a year later, Japan’s second-richest person has more than quadrupled his fortune to $38 billion, according to the Bloomberg Billionaires Index, hitting the highest level since Bloomberg started tracking billionaire wealth in 2012.The surge is closely tied to the rally in SoftBank shares, which represent more than 95% of his net worth and have climbed almost fourfold from a low at the worst of the pandemic-fueled selloff. The Vision Fund -- the world’s largest investment pool for tech startups -- posted its best quarterly profit, while SoftBank sold assets, bought back stock and settled a legal dispute with WeWork Cos. It’s also gathered supporters along the way, with Paul Singer’s Elliott Management Corp. disclosing last year it took a stake as the stock was undervalued.“SoftBank’s current major assets have huge cashflow and will continue to grow,” said Thomas Hayes, chairman of Great Hill Capital. “If he balances his harvesting of winners, with appropriately timed share repurchases, he will avoid a repeat of 2000, even if tech stocks moderate.”SoftBank’s fate has been deeply intertwined with its founder, to the point the relationship recently raised corporate-governance concerns. Son, who’s also chairman and chief executive officer, is personally invested in a unit that poured about $20 billion into tech stocks and derivatives. The 63-year-old, who owns one-third of that division and has denied there was a conflict of interest, said the program was a way to put SoftBank’s cash pile to use.To amplify his leverage, Son uses a common tactic among the ultra-rich -- borrowing against his stock. He just does it much more than most other billionaires.Recently, though, he’s trimmed his pledges as shares of the Japanese giant have become more valuable. Son had committed about one-third of his stake in SoftBank to more than 16 financial institutions as of Feb. 9, down from 38% in September, according to regulatory filings. That still represents about $18 billion -- one of the highest figures among the 500 richest people in the world. The pledges are used as collateral for loans, whose size could be smaller than the value of the committed shares given the recent rally. Bloomberg doesn’t include the value of pledged stock in net-worth calculations.A representative for SoftBank declined to comment for this story.SoftBank shares closed at an all-time high on Wednesday. Its Vision Fund last month posted a record profit for the final quarter of 2020, thanks to a boost in the value of its stakes in newly-listed firms including food-delivery service DoorDash Inc. and Chinese online property agent platform KE Holdings Inc.“Since the Vision Fund launched, the number of golden eggs is in accelerating mode,” Son said at a briefing last month. “We are finally in the harvesting stage.”Some 15 companies have gone public from the Vision Fund, and SoftBank may see between 10 and 20 listings a year from its portfolio of 164 startups, he said. Coupang Inc., a South Korean e-commerce giant, is seeking a U.S. IPO and could be valued at more than $50 billion. Compass Inc., one of the largest U.S. real estate brokerages, has filed for a listing, and Chinese truck startup Full Truck Alliance could go public this year. SoftBank has also joined the SPAC bandwagon with plans for several blank-check companies.SoftBank has also had its share of troubles. The Vision Fund has written down its $1.5 billion holding in Greensill Capital and is considering dropping the valuation to near zero, people familiar with the matter have said. At its worst point last year, investors questioned several of SoftBank’s investments, including WeWork, whose IPO spectacularly imploded.The turnaround has been rapid. In addition to improving the outlook for the startups in the Vision Fund, the rally in tech stocks helped boost the value of SoftBank’s stakes in publicly traded firms like Uber Technologies Inc. The Japanese conglomerate also just settled a lawsuit with WeWork and its co-founder, Adam Neumann, paving the way for another attempt at a potential listing of the office-sharing company.“SoftBank Group may expedite its second attempt to list WeWork,” Anthea Lai, a senior analyst at Bloomberg Intelligence, wrote in a March 1 note. “The additional stake should tighten SoftBank’s control and facilitate potential merger talks with special purpose acquisition companies.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Sea Predicts Sales Doubling as Online Shopping Boom Persists

    (Bloomberg) -- Sea Ltd. expects e-commerce revenue to double in 2021, sustaining its torrid pace of growth as Southeast Asia’s most valuable company counts on regional online shopping demand to persist after the pandemic.Revenue rose to $1.6 billion in the last three months of 2020 from $777.2 million a year earlier, Singapore-based Sea said Tuesday in a statement. Net loss widened to $523.6 million from $283.8 million.Sea, backed by Tencent Holdings Ltd., has emerged as a stock-market sensation since its initial public offering in New York in 2017, as investors bet the company can establish itself as a leader in e-commerce and gaming in Southeast Asia. Among companies valued at $100 billion or more, the stock is the No. 1 performer in Asia since the start of last year and only trails Tesla Inc. globally.It’s also trying to establish fintech as a third growth driver. Sea said Tuesday it’s acquired Composite Capital Management, a Hong Kong-licensed global investment management firm. The company will deploy $1 billion toward Sea Capital, a newly established platform to manage its overall investments. Composite Capital founder David Ma -- a former partner at Chinese private equity giant Hillhouse -- becomes Sea Capital’s chief investment officer, reporting to Sea Chief Executive Officer Forrest Li.“Sea’s growth prospects remain promising, riding on the growing digital economy in the region,” Citigroup analysts led by Alicia Yap wrote. “Guidance could prove conservative.”Here’s a Tech Bubble That Makes Tesla Look Cheap: Tim CulpanKey InsightsThe pandemic is helping to spur demand at Sea’s e-commerce business Shopee, with fourth-quarter sales increasing 178% to $842.2 million. Sea forecast 2021 revenue at Shopee of $4.5 billion to $4.7 billion, up from $2.2 billion in 2020.Hit mobile game Free Fire is fueling growth at Sea’s digital entertainment service Garena, whose sales last quarter rose 71.6% to $693.4 million. Sea forecast Garena’s annual bookings -- sales plus changes in deferred revenue -- will increase to $4.3 billion to $4.5 billion in 2021.Its e-wallet service gained traction, with payment volume exceeding $2.9 billion for the quarter and $7.8 billion for the full year. Sea is trying to build financial services into its third growth pillar.Get MoreSea Ltd 4Q Adjusted Ebitda Misses EstimatesFourth-quarter sales and marketing expenses climbed 95% to $665.2 million, led by digital financial services.For 2020, Sea posted total digital entertainment bookings of $3.2 billion.Annual revenue at Garena rose 77.5% to $2 billion.Market ReactionSea’s American depositary receipts ended mostly unchanged after surging as much as 11% Tuesday.(Updates with fund’s chief and analyst’s comment from the fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.