Saturday, 1 October 2016
Last updated 16 hours ago
Nov 29 2012 | 12:07pm ET
CQS is up 29% this year, but that could be only the beginning, according to the firm's founder.
Michael Hintze told the Reuters Global Investment 2013 Outlook Summit that next year looks to offer a dizzying array of opportunities for its Directional Opportunities Fund, both in stocks and bands. "I'm trying to make 20% to 30% per annum," he said "I haven't give any money back, so I still feel I'm going to have a bloody good go at it."
"There are massive distortions out there," Hintze said. "Double-B, B debt is totally mispriced because of… Basel III" rules, he said. "I'd even suggest equities might be cheap because of the lack of prop. trading."
Still, while he's leaning towards stocks, Hintze said it was still "a little early" to begin increasing CQS' exposure.
"The loans sector here is way cheaper than it should be because of the skin-in-the-game legislation," Hintze said, adding that the rules have "destroyed the CLO industry."
Hintze also had reassuring words for both sides of the Atlantic, expressing confidence that the U.S. will be able to deal with the so-called "fiscal cliff" and that there is "immense" political will to deal with Europe's debt problems.
"Remember, you can have very good markets and pretty lackluster fundamental economy," he said.