Tuesday, 23 September 2014
Last updated 8 hours ago
Dec 23 2009 | 12:44pm ET
Two prominent hedge fund managers are making big bets on U.S. Treasury yields.
John Paulson’s Paulson & Co. has begun shorting U.S. government bonds, believing that inflation will lead to higher yields, which will drive down the price of the securities, the Financial Times reports.
“It will be difficult for the government to withdraw the economic stimulus,” Paulson said in a recent speech. “An increase in the monetary base leads to an increase in the money supply, which leads to inflation.”
According to the FT, another major hedge fund, TPG-Axon Capital Management, is also betting on rising yields.
Tiger Management founder Julian Robertson is taking a different tack to profit from inflation’s effect on Treasuries. He’s begun betting on a widening yield curve.
“If they are right,” one hedge fund manager told the FT of Paulson, TPG-Axon’s Dinakar Singh and Robertson, “they will make a fortune. If they are wrong, they haven’t lost much.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.