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Hedge fund returns smash records even as K-shaped economy endures [Yahoo! Finance]
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TCI Fund Management, which had $77 billion in its coffers as of last month, made a return of 27% last year, according to an annual survey conducted by finance firm Edmond de Rothschild Group. For context, the broad S&P 500 index returned 16.4%. While many investors have loaded up on superstar stocks that benefit from the AI revolution, TCI made big bets on other industries. Its two biggest holdings, according to various media reports, are General Electric Co. and Safran SA – both aerospace companies. Economists and other professionals who keep an eye on financial markets have become increasingly concerned about a widening gulf between Americans in the top wealth brackets and everyone else. The so-called K-shaped economy trend has been driven in large part by the massive gains in stocks and other assets in recent years. As USA TODAY reported in November , one analyst reckons that nearly 90% of households earning over $100,000 own stocks, while only 28% of households earning less
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