Business

Yesterday JPM, which despite calling for a 2,200 year end price target, paradoxically warned that the regime of "buying dips" is over, and that "we take the view that equities are unlikely to perform well on a 12-24 month horizon" adding that "the regime of buying the dips might be over and selling any rallies might be the new one." So don't buy dips yet somehow the S&P will rise 150 points? Fair enough.

"The Saudis are preparing for Iran’s return," said Mohamed Sadegh Memarian, who recently retired as the head of petroleum market analysis at Iran’s oil ministry, as they sharply cut the prices they charge for crude oil in Europe (to the biggest discount since Feb 2009). The move that will likely undercut Iran happens as sectarian tensions escalate between the rival Middle Eastern nations.

As noted moments ago, the iconic $1.5 billion Nevsky Capital is calling it quits. What is surprising, is that unlike some "one hit wonder" hedge fund wannabe, Nevsky is actually a brand name in the hedge fund community, as demonstrated by the following performance charts.

And yet, despite its sterling performance, the fund is liquidating for all intents and purposes and returning outside money. Here is the full reason why, from the December letter to clients:

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Why have Nevsky Capital decided to cease managing the Nevsky Fund?

Following a year of historic routs in the hedge fund space, yesterday we pointed out that after the new year's break, it was time for the pain among the active investors to return:

Time for the first hedge fund liquidation of 2016

— zerohedge (@zerohedge) January 4, 2016

• Global share market settles after stormy start to year (Reuters)
• Stocks Extend Losses as Yen, Gold Rise on Lingering China Unease (BBG)
• China battles to shore up stocks, yuan after globe-shaking slide (Reuters)
• China Said to Intervene in Stocks After $590 Billion Selloff (BBG)
• Volkswagen faces billions in penalties as U.S. sues for environment violations (Reuters)
• Obama tightens gun rules, requires more background checks (Reuters)
• Obama to Announce Expansion of Background Checks for Gun Purchases (WSJ)