"With the XRT, this tends to be a high correlation to growth," he said. "As an [emerging markets] guy historically, I would short the XRT against it because it's very highly correlated with emerging markets.". In fact, his fund downplays the online giant's influence over the group, choosing to weight its holdings equally rather than by market capitalization.
"We've seen even this year that Amazon isn't even a top 10 performer in the online retail space," Magoon said. "It hasn't outperformed companies likeor Etsy or Wayfair. Amazon isn't always the No. 1 performer. Why? Because it has a really diversified business, whether it's AWS Cloud or some of the spending they're doing to build out infrastructure for deliveries.
So, instead of simply allowing Amazon to steer the ship, Magoon lets the rest of the digital commerce space take the lead, partly in hopes that investors will find out about stocks they didn't previously know. That kind of strategy "allows you to have exposure to Amazon, but not to be overly weighted, and discover companies like Carvana, which is a top holding in IBUY that many investors aren't that familiar with that's gained over 90% over the last year," he said.
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Fonte: CNBC - 🏆 12. / 72 Leggi di più »
Fonte: CNBC - 🏆 12. / 72 Leggi di più »