Biggs Cuts Traxis' Exposure, Unhappily

Aug 9 2011 | 1:48pm ET

Traxis Partners' Barton Biggs isn't practicing what he preaches.

The legendary Wall Street strategist said he has—reluctantly—reduced risk in the hedge fund's portfolio in the wake of the U.S. sovereign debt downgrade and market rout, despite publicly calling U.S. stocks a "strong buy" just last week.

Biggs told Bloomberg Television that he wanted to "get out of the way" of the market's recent troubles.

"I don't understand now what's going on," he said. "I suspect that we're now into a high-frequency trading, momentum-driven cascading downturn." And, as you might guess from that quote, he's not happy about it.

"I've taken some risk off, and I hate to do it," he said. "I think it's probably the wrong thing to be doing. But I'm a fiduciary to a certain extent, and I've got to protect my capital."


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note