Porter Collins and Vincent Daniel, the American investors famous for their roles in “The Big Short,” have made a significant impact on the financial world. Working under Steve Eisman at Frontpoint, they accurately predicted and profited from the collapse of the American housing market in 2008. Today, the duo runs the successful hedge fund Seawolf Capital, which CNBC reports achieved a remarkable 66% return last year.
In a recent interview with a news channel, the investors revealed that their key to success was applying simple probability theory to the American presidential election. They believed that Trump had a high likelihood of winning, prompting them to consider which stocks would perform best if he emerged victorious.
The duo emphasized that it is now Trump, not the Federal Reserve, driving market movements. Therefore, they are focused on forecasting how his policies will impact various stocks by 2025. Vincent Daniel noted that Trump aims to achieve American exceptionalism by weakening the US dollar. This could lead investors to seek growth opportunities in emerging markets, such as Brazil and China.
Collins highlighted the potential in Chinese stocks, despite the current negative sentiment surrounding them. He pointed out that while many view investments as expensive, Brazil offers a 10% yield at the index level. The investors are looking beyond the American AI hype and instead seeking opportunities where others are not looking, such as Alibaba.
Although they typically steer clear of American AI trends, they couldn’t resist investing in Alibaba, especially after the company claimed superiority over the renowned Deepseek in AI technology. Collins emphasized Alibaba’s low valuation and the potential for significant returns if its stock price multiples increase.
As they continue to navigate the ever-changing financial landscape, Collins and Daniel remain focused on uncovering undervalued opportunities and staying ahead of market trends. Their unconventional approach and success in predicting market movements demonstrate their unique perspective and strategic insight, setting them apart as leading figures in the world of finance.