Mutual Fund Manager Compares U.S. To '80-Times Leveraged Hedge Fund'

May 13 2011 | 12:49pm ET

One mutual fund manager has called the United States the worst epithet imaginable: a hedge fund.

Not just any old hedge fund, either, according to Old Mutual Asset Managers' Stewart Cowley: an overlevered hedge fund.

"U.S. borrowing is nearly at the $9 trillion mark," Cowley sneered at the Morningstar Investment Conference this week. "This kind of borrowing is grotesque and simply cannot go on."

Cowley called on the U.S. to tighten its monetary policy and rein in spending, as European countries, including his own, the U.K., have been forced to do. And then he dropped the H-bomb.

"U.S. reserves look like an 80-times leveraged hedge fund, and no one would want to buy that, but the country just keeps on unreservedly spending $1.5 trillion a year," he said. "The consequences will eventually result in inflation being embedded in the economy."


In Depth

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...