Discovery Capital's Citrone shorts US stocks, bets on emerging markets

Billionaire hedge fund manager Rob Citrone is shorting U.S. equities and going long on global markets, citing excessive valuations and recent underperformance. Citrone, founder of Discovery Capital Management, noted U.S. assets trade at a roughly 40% premium compared to other markets. For the year ending Feb. 13, 2026, the S&P 500 gained 11%, significantly lagging the iShares Core MSCI Emerging Markets ETF (IEMG), which surged 34%. He cited "severe overweight" positions by U.S. institutions and uncertainty regarding AI monetization as key headwinds. Citrone favors emerging markets, specifically Mexico, Argentina, and Brazil.