Gundlach, Chanos Criticize Fed

Feb 21 2014 | 9:59am ET

The Federal Reserve may have some fans in the hedge fund community, but they are not nearly so vocal as its detractors.

The central bank's stimulus programs helped stoke last year's big gains on Wall Street. They are also, as Duquense Capital Management founder Stanley Druckenmiller has pointed out, much better for the rich than for the middle-class and poor. Still, some of the rich are not especially appreciative.

"I don't really like the Fed very much," DoubleLine Capital's Jeffrey Gundlach told The New York Times. "I wish the Fed were not manipulating the market the way it is."

One of the Fed's cheerleaders is Bridgewater Associates' Ray Dalio, who has said that the stimulus programs have led to a "beautiful deleveraging." But Kynikos Associates' James Chanos says that is a mirage.

"The beautiful deleveraging has not happened," Chanos told the Times. "We are more leveraged as a society than we were in 2007, at the onset of the financial crisis."

"They've gotten themselves boxed into a corner," Gundlach says. "It is the same old game and we keep saying the same old things."


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

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

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