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Exclusive: Morgan Creek's Mark Yusko Isn't A Fan Of General Electric's Buyback

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Mark Yusko was recently a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick..

Yusko is the Founder and Chief Investment Officer of Morgan Creek Capital. He discussed General Electric Company (NYSE: GE)'s announcement of asset sales and a new $50 billion buyback program.

Yusko isn't a fan of General Electric's announcement, noting that a share buyback will benefit management in the near-term, but shareholders won't benefit in the long-term.

"I'm not a big fan of it," Yusko said. He added that he is also not a fan of a large special dividend and would rather see the company invest in its business.

"The big challenge for investors from here is the ‘buyback game' is just about over (notwithstanding Friday's large announcement) but it will be very difficult for companies to earn greater profits if they don't start investing."

He concluded that a focus on buybacks rather than investments could be apparent as early as the first quarter as many companies may report negative earnings.

Listen to the full interview below:

Posted-In: Mark Yusko Morgan Creek Capital Share Buybacks special dividendsAnalyst Color Exclusives Interview

 

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