🗞️The Wrap: Big in Japan

Japan can’t get enough of itself, Jordan’s journey to 3 commas, and a chance to make your name as the next Billy Beane.

5 Stocks Reaching 52 Week Highs

  • Fastly (FSLY) +63.2% in the last week
  • United Natural Foods (UNFI) +50.3%
  • DataDog (DDOG) +47.8%
  • Enphase Energy (ENPH) +33.6%
  • Fiverr (FVRR) +29.2%

BoJ Job

The US Federal Reserve announced their first foray into the ETF market when they started buying corporate bond ETFs earlier this week. By buying bonds, the Fed gives companies the money they need to keep the lights on. The news isn’t particularly unexpected, nor is it particularly controversial. What people are asking is, where does it stop?

The Bank of Japan is on track to be the largest holder of equity and bond ETFs in the whole Japanese market, overtaking the national pension fund. Yes, they hold Japanese stocks on their balance sheet. US$250b worth to be exact. It’s an unprecedented position to be in but not a new one. They’ve been purchasing ETFs for close to a decade now.

The list of questions are endless; the natural ETF bubble that forms as companies rise in price simply for being part of an index. More pressingly, what does the BoJ do? What happens when they start to unwind and flood the market with supply?

With an ageing population and horrible deflationary spirals, the BoJ is willing to take on the risk given conventional monetary policy is as effective as a curfew on Dennis Rodman.

On that note…

billionAIR

The Last Dance has been dominating screens. I can say the only thing I share with the great (is he the Goat?) is my love for a bet. But Jordan’s investments have put his $100,000 golf rounds in the shadows.

Despite earning around US$90m from the Bulls (around US$200m in today’s terms), he is now a long-time member of the three comma club with a fortune of US$2.1b according to Forbes. Those aren’t returns you get via compounding in an index fund.

Well, it’s the companies in your own portfolio that have turned him into a billionaire. Jordan has earned US$1.7b in pre-tax income from deals with Nike (NKE), McDonalds (MCD), Coke (KO).

Then came the Hornets. His hometown team is his best tangible investment yet. Buying the Hornets at a val of US$175m in 2010. Last September he sold 20% of the team at a US$1.5b val. A 9 bagger in 9 years, not bad.

Other VC style investments include startups in the sports data and e-sports space.

Top 5 Gainers

  • MacroGenics (MGNX) +257.2% in the last week
  • Novavax (NVAX) +123.9%
  • VectorIQ Acquisition Corp (VTIQ) +104.8%
  • Myokardia (MYOK) +82.4%
  • Twilio (TWLO) +63.2%

Top 5 Fallers

  • Inogen (INGN) -29.9% in the last week
  • ProAssurance Corp (PRA) -23.5%
  • Spirit Airlines (SAVE) -23.2%
  • Brink’s Company (BCO) -23.1%
  • Aurora Cannabis (ACB) -22.9%

Owner’s Box

Owning a sports team mightn’t be that big a pipe dream after all – and it doesn’t even have to be on Madden. Arctos Partners has raised US$1b for a fund mandated to buy stakes in international sporting teams. A focus on European soccer and American sports gives unitholders the chance to own more than just a jersey.

The MLB recently changed their ownership requirements to allow funds to buy into teams and so are Arctos’ top target. If only it was public…I would short it as soon as they touched the Dallas Cowboys or Houston Astros.

So, if you’ve got a bit of cash left following the stimulus and fancy paying Bryce Harper’s wages, reach out to them if you want. Maybe they’ll even open your email.

What We’re Watching | How Online Dating is Reshaping the Entire Economy with
Dan McMurtrie

I first came across Dan in a Real Vision’s interview on his macro-level investing approach. His ability to understand social trends and then how to make money off them was intriguing.

And this podcast is exactly about that. Dan’s firm Tyro Capital put together a paper on how dating is changing and what it means about the economy. For the first time in history, the cost of meeting a partner is effectively zero (no dinner, drinks, movie). The fact he even considered this shows the plane of thinking he’s on. Well worth digging deeper into his mind.

His Twitter (@SuperMugatu) is also great for his takes and insights if you want to keep up with the young gun. For the budding fund managers, here are his thoughts on how he started Tyro Partners.

Trader Teaser

I have $10,000. Every year my portfolio grows by exactly 8%. I add $10,000 more every year too. How long until I have $1million? No tax or withdrawals.

Best Buy | VTIQ +92%

This buy could not have been timed any better. A dream run has left this trader with almost triple-figure gains in one week. The key now is timing the sell…a much harder feat.

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