Hintze Sees Plenty Of Room For Big Returns In '13

Nov 29 2012 | 1:07pm 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.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of