Wednesday, 31 August 2016
Last updated 2 hours ago
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.”