High-profile investors and billionaires have backed Donald Trump in the lead-up to the elections. Notable supporters include hedge fund managers Bill Ackman, Ken Griffin, and Scott Bessent.
Ackman, who has opposed DEI initiatives since the 2023 attacks on Israel, initially donated millions to Democratic Party organizations before endorsing Trump. Trump appointed Bessent as treasury secretary, while Griffin later expressed support for the Republican candidate in December.
Griffin had previously described Trump as a “three-time loser” but now sees his victory as an opportunity to end regulatory and litigation issues from the Biden era. Analysts warn that concerns about macroeconomic uncertainty are driving short bets against US stocks.
Elliott Management, which manages over $70bn worth of investments, warns that Trump’s presidency is fueling speculative bubbles in markets. The “magnificent seven” tech companies have seen their stock prices surge due to excitement around artificial intelligence, but investors now worry about over-investment. A recent sell-off of top American tech companies, including Nvidia and Apple, has highlighted these concerns.
The launch of DeepSeek’s new chatbot has raised alarm bells among investors, who fear the technology could lead to market crashes if not managed properly. High Flyer, a Chinese hedge fund, owns DeepSeek and is known for its algorithmic trading techniques, which have drawn concern from the market.
Source: https://www.telegraph.co.uk/business/2025/01/31/hedge-funds-bet-billions-against-trumps-america