This hedge fund is beating the S&P 500 and Dow. Here's what its manager is buying — and avoiding

David Neuhauser, a hedge fund manager, has seen his fund beat the Dow Jones Industrial Average and the S & P 500 so far this year. Neuhauser stated that the fund's performance is due to small-cap energy stocks. He named three of them: Jadestone Energy, Kolibri Global Energy, and Vista Energy. Kolibri is the most successful of the three stocks. It has risen 71%, while Vista Energy has risen nearly 50%. This comes as oil prices rise this week following a surprise OPEC+ oil production reduction in April. Vista Energy is up nearly 50%. "We have seen such a low level of investment in the (oil), space over the past five to 7 years. This is my view, even in a recession. Neuhauser stated that crude oil prices are in a strong range. If we avoid a deeper recession, then the demand will surprise us to our advantage. Neuhauser stated that he has a "luxury strategy." Neuhauser said he also has a "luxury playbook." Neuhauser said that Livermore also holds short positions in Tesla and the U.S. Dollar as a hedge.

Neuhauser, who advises against tech Neuhauser, said that he believes the economy remains in stagflation and that a bear market "still exists." He noted that many large tech companies have experienced layoffs and cost-cutting efforts in the last three months. This of course maintains the margins for six to nine months and then stock prices begin to react. He said that stock prices have risen 20% to 30% since the beginning of the year. As of Wednesday's close, the Nasdaq has risen nearly 15% this year. However, investors will be "severely disappointed" when they look at the outlook for growth and valuation until 2025. Neuhauser stated that there is more downside ahead and that it won't "really hit" the market for at least three to six months. "In the overall market index, I wouldn't be a long but that's where today the market is seeing value. He told CNBC that he believes this is going to be an error.