The hedge fund world moves faster than the normal investment world. Hedge fund managers can spot winners long before other investors because there’s a hedge fund network. And that network seems too big to fail. But Shervin Pishevar, one of those competent hedge fund investors, did get a taste of failure when he resigned his CEO position at Investment company at the end of 2017. Mr. Pishevar made a name for himself while he worked with Menlo Capital. Back then, Shervin Pishevar was the man with the Midas touch. He was the investor who saw the potential in Uber and Airbnb. And he invested a ton of money in those two startups.
Shervin Pishevar also invested in other great startups like Warby Parker and Postmates. Pishevar was riding high in the hedge fund world. But his rocket ride in the investment industry ran out of steam when he resigned from Investment company. Shervin decided to take a couple of months off at the beginning of 2018. But in March, Shervin Pishevar came out of the investment shadows swinging for the fences. Shervin let his investment pals know the stock market and the bond market are heading for a major adjustment.
The tweetstorm that Shervin Pishevar put together wasn’t good news. Pishevar let investors know the stock market will drop by 6,000 points or more in 2019. And he thinks the bond market won’t protect investors the way it usually does when stocks begin to drop. He also thinks Silicon Valley needs to wake up. Other countries are beating Silicon Valley at its own game.
When the Shervin Pishevar tweetstorm hit cyberspace, most investors ignored Pishevar’s warning. But those investors had a change of heart in October when the stock market began its slow decline. That’s what Shervin said would happen. The other tweets that Shervin put out there are making investors think twice before they invest. And that’s a good thing, according to the smart hedge fund managers.
Shervin Pishevar has probably mentioned a subject that many individuals in the country don’t want to be associated with. The Uber investor posted a message on Twitter blaming the government for allowing a particular group of companies from dominating the economy through monopolistic tendencies that don’t give room for other small organizations to grow. It is in public knowledge that only a few companies have developed to the expected levels in the country.
All the small companies have been experiencing difficulties in trying to establish themselves in the market. Their problems can be attributed to robust competition from the large organizations that started their operations some few decades ago. The competition is not only based on prices but also in other aspects, some of which the government has had a direct role. Shervin Pishevar is quick enough to unearth some of the unknown mysteries in the corporate world.
According to Shervin Pishevar, large corporations in the United States such as Alphabet, Microsoft, Amazon, Facebook, and Apple appear as if they are government parastatals due to the benefits they have been getting from the government. Pishevar calls them the five monopolies and has a perception that displacing them in the industry would require much than the normal business competition. It appears as if each of the unicorns has strategically positioned itself in a particular sector.
One of the strategies that the five monopolies have been using to control and dominate the market is through price domination. Due to the fact that these organizations have a strong financial basis, they set their prices lower than the market price which causes small startup companies to adjust their rates. Shervin Pishevar continues to highlight that small organization later collapses as they are not able to operate in a market that sells products below the market price.
Shervin Pishevar has also come up with another idea of how the five monopolies have been getting support from the government. Most of these companies have been taking over small companies through hostile strategies, which is a clear illustration that small companies don’t have a room for growth in the country. The problem is that the government watches without doing nothing as small companies are a takeover by force.