Biggs Less Bullish On US Equities

Nov 21 2011 | 12:15pm ET

Traxis Partners’ Barton Biggs has cut his bullish bets again for fear of another U.S. recession.

Biggs told Bloomberg Television that the Traxis Global Equity Macro Fund’s net long position is now under 40%, and could be cut by as much as another 15 percentage points.

“It’s a much more bearish environment than I anticipated,” said Biggs. “We are going to have a decline at least back to the lows of last summer. God forbid, maybe even testing the lows of 2008 and 2009.”

The money manager now puts the odds of the U.S. entering a recession in H1 2012 at between 60 and 70%, based on a number of factors including the failure of a congressional supercommittee to agree on $1.2 trillion in federal budget savings.

“I’m very disappointed,” said Biggs. “It’s pathetic that they haven’t come to a deal. It shows our political system is really dysfunctional. I’ve been wrong in being too optimistic about the outcome in the U.S.”


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...