Latest news with #iSharesRussell2000
Yahoo
4 days ago
- Business
- Yahoo
‘So Bad It's Good': Buying Window Opens for Battered Small Caps
(Bloomberg) -- The smallest US stocks have entered a historically favorable time of year, boosting hopes that the beleaguered group can rebound after a dismal start to 2025. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design Small-cap stocks have outpaced their bigger counterparts 60% of the time in June since 1990, according to an analysis from Evercore ISI strategist Julian Emanuel. That seasonality has been even more pronounced when larger stocks are trouncing smaller ones, as they are this year: In those instances, the returns of smaller stocks have bested the larger peers in June every single time. Such a period would be a long-awaited bright spot for small-cap investors, should history repeat. The Russell 2000 Index, a small-cap benchmark, hasn't made a fresh record high since 2021 and has fallen 5.9% year-to-date as uncertainty sparked by President Donald Trump's trade war shocked markets. The S&P 500 has also seen its share of dizzying swings, but is up 1.5% for the year and stands within a few percentage points of February's all-time high. 'It is truly a case of small caps being 'so bad, it's good,' right now,' Emanuel said. 'Buy these stocks for a possible performance-reversion trade in June, and perhaps for longer if macro catalysts such as trade deals materialize.' Small-cap stocks initially benefited from the enthusiasm that gripped markets following Trump's election late last year, as investors bet that the lower taxes and reduced regulation he had promised would help smaller companies. But the administration's focus on tariffs — another key part of Trump's platform — sparked worries that small-cap firms would be more vulnerable to the economic disruptions that a trade war could bring, souring investors on the category in the early months of 2025. Bearish Bets While a rally in some of the market's riskier names has boosted small-cap stocks, positioning data shows that traders remain largely negative on the group. Open interest in bullish call options on the biggest fund tracking the Russell 2000 was hovering near the lowest level since February relative to put options earlier this week, suggesting market participants are bracing for more declines. The measure has become slightly more bullish over the last trading session. Meanwhile, bearish bets against small-caps have been growing. Short interest in dollar terms in the iShares Russell 2000 ETF — which shows how much bearish investors have at risk on their wagers — has risen to the highest level since 2022, according to data from S3 Partners. Still, the buildup of bearish positions also creates the conditions for a squeeze higher, if rising prices or favorable news causes those investors to unwind their bets on small-cap stocks, said Jeff Jacobson, derivatives specialist at 22V Research. 'We have seen these 'consensus' ideas flip very quickly on short notice,' Jacobson said. Signs that the US is reaching constructive agreements with its trading partners and strong economic data could heighten the group's appeal, strategists said. While its still early days, small-cap stocks are so far enjoying a tailwind this month. The Russell 2000 has outperformed the S&P 500 by over half a percentage point in the first three trading days of June. Technical strategists, who analyze chart patterns to predict where stocks may be headed next, are also seeing constructive signals. The Russell 2000 is near an 'inflection point' at its current level of around 2,100, according to analysts at Piper Sandler. A break could see it rise 19% to 2,500 by mid-August, they wrote on Wednesday. Jacobson, of 22V, also expects a 'decent-sized move higher' in the small-cap index in the short term. 'It is a window of opportunity,' he said. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
‘So Bad It's Good': Buying Window Opens for Battered Small Caps
(Bloomberg) -- The smallest US stocks have entered a historically favorable time of year, boosting hopes that the beleaguered group can rebound after a dismal start to 2025. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design Small-cap stocks have outpaced their bigger counterparts 60% of the time in June since 1990, according to an analysis from Evercore ISI strategist Julian Emanuel. That seasonality has been even more pronounced when larger stocks are trouncing smaller ones, as they are this year: In those instances, the returns of smaller stocks have bested the larger peers in June every single time. Such a period would be a long-awaited bright spot for small-cap investors, should history repeat. The Russell 2000 Index, a small-cap benchmark, hasn't made a fresh record high since 2021 and has fallen 5.9% year-to-date as uncertainty sparked by President Donald Trump's trade war shocked markets. The S&P 500 has also seen its share of dizzying swings, but is up 1.5% for the year and stands within a few percentage points of February's all-time high. 'It is truly a case of small caps being 'so bad, it's good,' right now,' Emanuel said. 'Buy these stocks for a possible performance-reversion trade in June, and perhaps for longer if macro catalysts such as trade deals materialize.' Small-cap stocks initially benefited from the enthusiasm that gripped markets following Trump's election late last year, as investors bet that the lower taxes and reduced regulation he had promised would help smaller companies. But the administration's focus on tariffs — another key part of Trump's platform — sparked worries that small-cap firms would be more vulnerable to the economic disruptions that a trade war could bring, souring investors on the category in the early months of 2025. Bearish Bets While a rally in some of the market's riskier names has boosted small-cap stocks, positioning data shows that traders remain largely negative on the group. Open interest in bullish call options on the biggest fund tracking the Russell 2000 was hovering near the lowest level since February relative to put options earlier this week, suggesting market participants are bracing for more declines. The measure has become slightly more bullish over the last trading session. Meanwhile, bearish bets against small-caps have been growing. Short interest in dollar terms in the iShares Russell 2000 ETF — which shows how much bearish investors have at risk on their wagers — has risen to the highest level since 2022, according to data from S3 Partners. Still, the buildup of bearish positions also creates the conditions for a squeeze higher, if rising prices or favorable news causes those investors to unwind their bets on small-cap stocks, said Jeff Jacobson, derivatives specialist at 22V Research. 'We have seen these 'consensus' ideas flip very quickly on short notice,' Jacobson said. Signs that the US is reaching constructive agreements with its trading partners and strong economic data could heighten the group's appeal, strategists said. While its still early days, small-cap stocks are so far enjoying a tailwind this month. The Russell 2000 has outperformed the S&P 500 by over half a percentage point in the first three trading days of June. Technical strategists, who analyze chart patterns to predict where stocks may be headed next, are also seeing constructive signals. The Russell 2000 is near an 'inflection point' at its current level of around 2,100, according to analysts at Piper Sandler. A break could see it rise 19% to 2,500 by mid-August, they wrote on Wednesday. Jacobson, of 22V, also expects a 'decent-sized move higher' in the small-cap index in the short term. 'It is a window of opportunity,' he said. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
Yahoo
16-05-2025
- Business
- Yahoo
Paul Tudor Jones Makes Bold Move with iShares Russell 2000 ETF
Paul Tudor Jones (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into his investment moves during this period. Paul Tudor Jones (Trades, Portfolio) II, founder and chief investment officer of Boston-based Tudor Investment Group, is one of the pioneers of the modern-day hedge fund industry. Jones began his career in the cotton pits before forming the firm in 1980. The guru was eager to create a firm differentiated by a steadfast dedication to client objectives and guided by strong ethics and values. While Tudor Investment is best known for its rich history in discretionary macro trading, the firm also has significant experience and capabilities in model-driven and systematic investment approaches. Management believes that firms must continually innovate in order to compete in rapidly evolving markets and thus, commits significant resources to research and development across a variety of strategies in order to expand the firm's edge. Ultimately, Tudor seeks to generate consistent returns for both client and proprietary capital through the use of best-in-class research, trading, and investment techniques. Warning! GuruFocus has detected 3 Warning Signs with NTRA. Paul Tudor Jones (Trades, Portfolio) added a total of 519 stocks, among them: The most significant addition was Intra-Cellular Therapies Inc (ITCI), with 621,815 shares, accounting for 0.27% of the portfolio and a total value of $82.03 million. The second largest addition to the portfolio was SPDR S&P Regional Banking ETF (KRE), consisting of 1,261,407 shares, representing approximately 0.24% of the portfolio, with a total value of $71.71 million. The third largest addition was Humana Inc (NYSE:HUM), with 199,331 shares, accounting for 0.18% of the portfolio and a total value of $52.74 million. Paul Tudor Jones (Trades, Portfolio) also increased stakes in a total of 509 stocks, among them: The most notable increase was iShares Russell 2000 ETF (IWM), with an additional 3,051,619 shares, bringing the total to 3,736,913 shares. This adjustment represents a significant 445.3% increase in share count, a 2.03% impact on the current portfolio, and a total value of $745.48 million. The second largest increase was INVESCO QQQ Trust (NASDAQ:QQQ), with an additional 228,753 shares, bringing the total to 248,961. This adjustment represents a significant 1,131.99% increase in share count, with a total value of $116.74 million. Paul Tudor Jones (Trades, Portfolio) completely exited 521 holdings in the first quarter of 2025, as detailed below: Infinera Corp (INFN): Paul Tudor Jones (Trades, Portfolio) sold all 15,915,186 shares, resulting in a -0.41% impact on the portfolio. CVS Health Corp (NYSE:CVS): Paul Tudor Jones (Trades, Portfolio) liquidated all 977,703 shares, causing a -0.17% impact on the portfolio. Paul Tudor Jones (Trades, Portfolio) also reduced positions in 403 stocks. The most significant changes include: Reduced ISHARES BITCOIN TR (NASDAQ:IBIT) by 3,303,026 shares, resulting in a -41.04% decrease in shares and a -0.67% impact on the portfolio. The stock traded at an average price of $52.94 during the quarter and has returned 6.04% over the past 3 months and 10.59% year-to-date. Reduced iShares Core S&P 500 ETF (IVV) by 252,989 shares, resulting in a -96.74% reduction in shares and a -0.57% impact on the portfolio. The stock traded at an average price of $590.51 during the quarter and has returned -2.88% over the past 3 months and 1.08% year-to-date. At the first quarter of 2025, Paul Tudor Jones (Trades, Portfolio)'s portfolio included 2,971 stocks, with top holdings including 2.48% in iShares Russell 2000 ETF (IWM), 0.74% in ISHARES BITCOIN TR (NASDAQ:IBIT), 0.53% in Kellanova (NYSE:K), 0.5% in Frontier Communications Parent Inc (NASDAQ:FYBR), and 0.45% in Spirit AeroSystems Holdings Inc (NYSE:SPR). The holdings are mainly concentrated in all 11 industries: Technology, Financial Services, Consumer Cyclical, Healthcare, Industrials, Communication Services, Consumer Defensive, Energy, Real Estate, Utilities, and Basic Materials. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus.
Yahoo
15-05-2025
- Business
- Yahoo
Paul Tudor Jones Makes Bold Move with iShares Russell 2000 ETF
Paul Tudor Jones (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into his investment moves during this period. Paul Tudor Jones (Trades, Portfolio) II, founder and chief investment officer of Boston-based Tudor Investment Group, is one of the pioneers of the modern-day hedge fund industry. Jones began his career in the cotton pits before forming the firm in 1980. The guru was eager to create a firm differentiated by a steadfast dedication to client objectives and guided by strong ethics and values. While Tudor Investment is best known for its rich history in discretionary macro trading, the firm also has significant experience and capabilities in model-driven and systematic investment approaches. Management believes that firms must continually innovate in order to compete in rapidly evolving markets and thus, commits significant resources to research and development across a variety of strategies in order to expand the firm's edge. Ultimately, Tudor seeks to generate consistent returns for both client and proprietary capital through the use of best-in-class research, trading, and investment techniques. Warning! GuruFocus has detected 3 Warning Signs with NTRA. Paul Tudor Jones (Trades, Portfolio) added a total of 519 stocks, among them: The most significant addition was Intra-Cellular Therapies Inc (ITCI), with 621,815 shares, accounting for 0.27% of the portfolio and a total value of $82.03 million. The second largest addition to the portfolio was SPDR S&P Regional Banking ETF (KRE), consisting of 1,261,407 shares, representing approximately 0.24% of the portfolio, with a total value of $71.71 million. The third largest addition was Humana Inc (NYSE:HUM), with 199,331 shares, accounting for 0.18% of the portfolio and a total value of $52.74 million. Paul Tudor Jones (Trades, Portfolio) also increased stakes in a total of 509 stocks, among them: The most notable increase was iShares Russell 2000 ETF (IWM), with an additional 3,051,619 shares, bringing the total to 3,736,913 shares. This adjustment represents a significant 445.3% increase in share count, a 2.03% impact on the current portfolio, and a total value of $745.48 million. The second largest increase was INVESCO QQQ Trust (NASDAQ:QQQ), with an additional 228,753 shares, bringing the total to 248,961. This adjustment represents a significant 1,131.99% increase in share count, with a total value of $116.74 million. Paul Tudor Jones (Trades, Portfolio) completely exited 521 holdings in the first quarter of 2025, as detailed below: Infinera Corp (INFN): Paul Tudor Jones (Trades, Portfolio) sold all 15,915,186 shares, resulting in a -0.41% impact on the portfolio. CVS Health Corp (NYSE:CVS): Paul Tudor Jones (Trades, Portfolio) liquidated all 977,703 shares, causing a -0.17% impact on the portfolio. Paul Tudor Jones (Trades, Portfolio) also reduced positions in 403 stocks. The most significant changes include: Reduced ISHARES BITCOIN TR (NASDAQ:IBIT) by 3,303,026 shares, resulting in a -41.04% decrease in shares and a -0.67% impact on the portfolio. The stock traded at an average price of $52.94 during the quarter and has returned 6.04% over the past 3 months and 10.59% year-to-date. Reduced iShares Core S&P 500 ETF (IVV) by 252,989 shares, resulting in a -96.74% reduction in shares and a -0.57% impact on the portfolio. The stock traded at an average price of $590.51 during the quarter and has returned -2.88% over the past 3 months and 1.08% year-to-date. At the first quarter of 2025, Paul Tudor Jones (Trades, Portfolio)'s portfolio included 2,971 stocks, with top holdings including 2.48% in iShares Russell 2000 ETF (IWM), 0.74% in ISHARES BITCOIN TR (NASDAQ:IBIT), 0.53% in Kellanova (NYSE:K), 0.5% in Frontier Communications Parent Inc (NASDAQ:FYBR), and 0.45% in Spirit AeroSystems Holdings Inc (NYSE:SPR). The holdings are mainly concentrated in all 11 industries: Technology, Financial Services, Consumer Cyclical, Healthcare, Industrials, Communication Services, Consumer Defensive, Energy, Real Estate, Utilities, and Basic Materials. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Why Russell 2000 ETFs Win Amid Tariff De-Escalation
Russell 2000 ETFs, such as the iShares Russell 2000 ETF (IWM), have outpaced the broader U.S. equity market following this week's U.S.-China tariff pause and the general trade war de-escalation over the past month. On Monday, the Russell 2000 index climbed 3.5%, edging out the S&P 500's 3.3% gain, reflecting renewed investor optimism in small-cap stocks. This positive movement is attributed to the 90-day truce between the U.S. and China, which involved significant reductions in reciprocal tariffs. Since the bottom of the near-bear-market decline of 19% April 8, IWM has jumped 20%, whereas the S&P 500 has gained 18%, primarily led by mega-cap tech stocks. Small-cap companies, which are more domestically focused, are particularly sensitive to changes in trade policy. The reduction in tariffs lessens input costs and supply chain disruptions, directly benefiting these businesses. Additionally, the truce improved overall market sentiment, encouraging investors to shift towards riskier assets like small-cap equities. This shift is further supported by a decrease in recession probabilities, with betting markets lowering the odds of a U.S. recession from 52% to 40%. The rally in small-cap stocks was further amplified by a short squeeze. Prior to the trade truce, small- and mid-cap stocks had higher short interest, with 6.3% of shares shorted compared to 1.8% for large-cap stocks. The sudden positive shift in trade relations forced short sellers to cover their positions, driving prices even higher. Looking ahead, the Russell 2000's performance will hinge on several factors. Trade policy developments: A lasting resolution to U.S.-China trade tensions could provide sustained support for small-cap stocks. Economic indicators: Continued economic growth and consumer spending will bolster small-cap companies. Interest rates: Stabilizing or declining interest rates could reduce borrowing costs, benefiting small businesses. Valuation and earnings growth: Small-cap earnings growth may outpace that of large caps in 2025, making them attractive to investors seeking growth opportunities. The recent rally in the Russell 2000 underscores the sensitivity of small-cap stocks to macroeconomic developments, particularly trade policies. While the short-term outlook has improved due to the U.S.-China trade truce, investors should monitor ongoing negotiations and economic indicators closely. Selective investment, focusing on fundamentally strong small-cap companies, may offer the best opportunities in the evolving 2025 | © Copyright 2025 All rights reserved Sign in to access your portfolio
