Opening Bell: 10.2.17

Hedge Funds Ain’t Dead Yet (WSJ)
The average hedge fund is up 5.4% through the end of August, while stock-focused hedge funds have gained 8.31%, according to the researcher HFR. Over the same period, the Standard & Poor’s 500 rose 11.9% including dividends, while the traditional 60-40 split of stocks and bonds would have earned 8.9%. That makes this year the industry’s best relative performance in a rising market since 2010.

Would You Buy 7 Percent Bonds From This Guy? (BBG)
“I don’t understand why people aren’t more conscious of the big change that’s going on here,” Caputo, 52, says. And then he flashes a bit of that swagger that Argentines are so well-known for throughout South America. “I’m convinced Argentina will be the star of emerging markets for the next 20 years,” he says. “I don’t mean to be cocky, but it’s very evident.”

Favorite to be next Fed chair believes US central bank is ‘slave of the S&P’ (CNBC)
Warsh also felt the Fed had been captured by the "Secular stagnation" ideas of former U.S. Treasury Secretary Larry Summers and have become persuaded by the idea that more monetary stimulus is needed. "Rather than admitting they are wrong, this group, who failed to predict the current economic malaise, have constructed this theory to explain why ever more stimulus is required. In particular Warsh warned that the Fed had become the slave of the S&P," Edwards added.

Scoop: Trump urges staff to portray him as "crazy guy" (Axios)
"You've got 30 days, and if you don't get concessions then I'm pulling out," Trump told Lighthizer. "Ok, well I'll tell the Koreans they've got 30 days," Lighthizer replied. "No, no, no," Trump interjected. "That's not how you negotiate. You don't tell them they've got 30 days. You tell them, 'This guy's so crazy he could pull out any minute.'"

Does Even Mark Zuckerberg Know What Facebook Is? (NYMag)
Like the internet, Facebook’s ­vertigo-inducing scale, encompassing not just the sheer size of its user base but the scope of its penetration of human activity — from the birthday-reminder mundane to the liberal-democracy significant — defies comprehension. When I scroll through the news feed on my phone, it’s almost impossible to hold in my mind that the site on which I am currently considering joining a group called “Flat Earth—No Trolls” is the same one whose executives are likely to testify in front of Congress about their company’s role in a presidential election.

Why Amazon should buy Twitter (Recode)
Some believe that, more than anything, Twitter would benefit from some air cover while it gets things figured out. Imagine if Twitter didn’t need to report earnings every three months, and if the service was instead measured by its ability to influence the real world and disseminate information. Putting the company under Amazon’s umbrella would give Bezos time to figure out the best way to value Twitter without watching its business get ripped by the media and Wall Street every three months.

‘These Go To 11’: SocGen ‘Goes There’ (Heisenberg)
That’s right, “these go to 11.” And in this case “these” refers to the entire damn world, because as Andrew notes, “global equity markets rose 2.1% in September, with MSCI World surpassing 2000 for the first time and in turn delivering its eleventh successive month of positive total returns.” This is the second longest stretch of consecutive gains for the MSCI World since its formation in 1969.

Shy of the Character Limit: “Twitter Mood Predicts the Stock Market” Revisited (Econ Journal Watch)
We find no evidence that our measures of Twitter mood aid in predicting the stock market out of sample. Congruously, the hedge fund set up in late 2010 to implement the Twitter mood strategy, Derwent Capital Markets, failed and closed in early 2012.

Boy, 8, squeaks when he breathes after swallowing toy whistle (NZ Herald)
An eight-year-old boy was left honking with every breath after swallowing a party hooter.