Hedge funds explained

Earlier today, Pepsi performed exactly what couple of companies is going to do this quarter: beat both the top ($15.9BN, vs exp. $15.8BN) as well as the main point here ($1.32, vs Exp. $1.24) with very little usage of every accounting gimmick in sun (ahem Alcoa). The cherry on top: it also increased it earnings forecast the 12 months from 7% to 8per cent, pressing shares higher 2.2per cent in premarket trading.

What Pepsi did, unlike all the other businesses crushed by the soaring dollar, is the fact that whilst the maker of Pepsi cola, Lay's casino chips and Gatorade has also been harmed by weakening currencies, from the euro to the Brazilian real, Pepsi managed to drive through cost increases to help keep income steady, while it continued to cut prices: in raising costs while firing individuals.

There's nothing wrong thereupon, Capitalism 101.

Permanent results. What did capture our atention was Pepsi's brilliant dumbing down of the 10-Q and admission so it understands perfectly whom its main "investor base" is nowadays, namely "attention-deficited", 17-year-old hedge investment managers (and algos definitely), who require a straightforward, lightweight story upon which to BTFD (or BTFATH).