Monday, 25 July 2016
Last updated 4 hours ago
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."