MacArthur’s macro level perspective to take strategic advantage of global technological shift, consumers buying pattern, and the undeniable obsolescence of key organizations along the way, is his drive to start a short only fund. And MacArthur had implemented this macro level strategy to his current research firm.
A relatable example was Musicland stores back in the 1990’s. There was a rapid transition between tape cassettes and CDs. MLG, the parent company of Sam Goody stores, was caught literally with a short supply of CDs, and an overage of tapes causing its sales to falter. The stock fell from $10 to $1. Anyone been in a Blockbuster store lately?
In 2016, there has been a lot of conversation about I-phone 7 sales fallowing below expectation. It is hard to pick winners; however, we believe the suppliers of electrical components could be at risk. Cirrus Logic (CRUS), for example, gets 68% of its revenue from AAPL.
If one follows MacArthur’s strategic thinking pattern, one would know the niche MacArthur is planning on bringing to his short only fund.