Element Hedge Fund Reaps $3 Billion Windfall on Trump Tax Trade

  • Founder Jeffrey Talpins says market will hit a new high
  • His macro fund rose 11.5% this year, beating its peers
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Jeffrey Talpins’s Element Capital Management reaped more than $3 billion in the last five months, primarily on a wager that President Donald Trump’s tax bill would pass, driving stocks and yields on U.S. Treasuries higher.

Talpins put on the trade about a year ago when investors had some doubts that a tax bill would succeed. His view then was that Trump and fellow Republicans, having failed to pass major legislation, including an overhaul of Obamacare, would unite to push through a large tax cut for individuals and corporations.