NEW YORK--(David Simon, CEO of Twin Capital Management LLC, an event-driven hedge fund firm, offered his insight on the trends he expects will take place in the coming year. His predictions are based on more than 25 years of experience as an investor.)--
Mr. Simon’s predictions for 2013 include:
- Margins for Apple will get squeezed throughout the year, and its ability to create new and innovative products could slow considerably. The stock price is likely to drop to $420 before it reaches $700 again.
- Facebook shares may trade up to the initial public offering price of $38 before the year is over as rumors of its demise have been greatly exaggerated.
- You have not heard the last about fears of the European Union falling apart.
- Unless Republicans and Democrats learn how to play well together, the value of the U.S. dollar will decline significantly because no one wants to resolve the looming problem of the U.S.’s off-balance sheet liabilities, such as Social Security, Medicare and government pension shortfalls.
- If the U.S. dollar does decline, gold could soar above $2,000 an ounce and commodities will rally significantly.
"For 2013, given the looming standoff in U.S. Congress regarding resolution of the fiscal deficit, corporate CEOs will sit on the sidelines until there is certainty in government spending and taxes. If and when some real decisions are made, expect to see a robust event and deal environment for the remainder of the year," said Mr. Simon.
About Twin Capital Management:
Twin Capital Management LLC is an alternative investment management firm founded by David Simon in 1988. The firm manages equity-based, event-driven strategies with the goal of consistently producing superior, risk-adjusted, and uncorrelated returns. Twin Capital Management’s investment process is designed to identify, analyze and maximize the upside of opportunities, while minimizing risk. David Simon was recently honored by The Young Jewish Professionals (YJP) with the “Equity Event Driven/Merger Arbitrage Award” at the 2012 YJP Finance and Hedge Fund Summit. Twin Capital Management LLC won HFMWeek's best “Merger Arbitrage Fund” at the 2012 U.S. Hedge Fund Performance Awards.
Past performance is not indicative of future results. The information contained in this press release does not constitute an offer to sell or the solicitation of an offer to purchase interests in any fund managed by Twin Securities, Inc. Such an offer or solicitation can only be made pursuant to a final offering memorandum, only to investors who meet certain eligibility requirements, and only in those jurisdictions where permitted by law. An investment in a private fund is not appropriate or suitable for all investors and involves the risk of loss, as well as other risks more fully described in the offering memoranda. Twin Securities, Inc. is a registered investment adviser. More information about the adviser can be found in its ADV Part 2, which is available upon request by calling 212-687-6834.