Hedge Fund Managers: Fed Taper Won't Stop Stock Surge

Sep 18 2013 | 12:45pm ET

Whatever the Federal Reserve decides to do today about its bond-buying program, it won't keep the markets from rallying along, according to prominent hedge fund managers.

U.S. stocks will not be adversely affected if the Fed decides to taper its quantitative easing program today, according to Stanley Druckenmiller, Michael Novogratz of Fortress Investment Group and Passport Capital's John Burbank, among others. The bullish hedge fund managers believe that the taper has already been priced into stocks, and that a more radical shift on bond-buying has been pre-empted with the exit of former Treasury Secretary Lawrence Summers from the race to succeed Fed Chairman Ben Bernanke, Bloomberg News reports.

"I think one of the major uncertainties in the market has been cleared up" with Summers' exit, Druckenmiller said. The Duquesne Capital Management founder had previously warned that that the end of QE3 would be a "big deal." Novogratz has said that U.S. stocks, already up in the high teens this year, could end 2013 up 25% to 30%.

"Markets can definitely rally into December," Breton Hill Capital's Frank Maeba said.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note