Business Week has an interested cover of the reality of hedge funds. Long overdue.
Consider the ultimate hedge position. Play the Diabetes Contango. Short McDonald’s (NYSE:MCD) who with extra fries has done a lot to promote diabetes. Go long something with a Diabetes solution. Which raises the question which stock will be the financial standard-bearer in the fight against diabetes. Currently an epidemic in western countries with some 20% of general population affected. Drugs, health care provider, diabetes supply manufacturer. This is perhaps the next golden grail. This is just the strategic big bet that Jack Welch and the old General Electric or GE (NYSE:GE) were famous for.
Who will make it this time?
George Gutowski writes from a caveat emptor perspective. Lots of home work to do after this post.