Hugh Hendry, perhaps the UK's most eclectic hedgie, reflects on the anniversary of the year following the Lehman Brothers bust.
Click play to listen:
Hendry has been keeping his powder dry since late March as he is conflicted by the rally and happy to sit out the innings. He remains of the mind we are in for a W-shaped double dip in the market (and economy), and he is being cautious. Last year, his flagship fund captured a 40% return by focusing on investments in long dated bonds in the US and UK, while yields tumbled. In March when the bond market peaked and long term yields began to rise against a violent quick turn in the equity markets, Hendry back out of his bond investments, but has chosen to remain underinvested, and believes that this is nothing but a bear rally. Hendry says that he is quite happy at this stage to have a small loss year-to-date, and to wait and be in an advantageous cash position in this market.
Hendry embraced deflation at the core of his recent investing strategy, and crusaded during numerous visits against those who dismissed the economic threat, of the big D, on CNBC in London. which we covered. Some of the debates were hilarious, yet eye opening, and Hendry is a must see/must listen to commentator.
Source: Bizcast.co.za
