MARIA: WELCOME BACK, MARKETS
HAVE HAD A ROUGH RIDE IN 2022,
DOW, NASDAQ AND THE S&P ALL DOWN
BETWEEN 19 AND 31% YEAR TO DATE.
JOINING ME RIGHT NOW IS HFR
PRESIDENT KEN HINES.
WE WANT TO LOOK AT HEDGE THIS
MORNING.
THANK YOU VERY MUCH FOR BEING
HERE.
>> THANKS FOR HAVING ME ON.
MARIA: HFR FOR INVESTORS AND YOU
HAVE DETAILS ON PERFORMANCE.
HOW HAVE HEDGE FUNDS DONE VERSUS
LONELY PHONES IF YOU’RE INVESTOR
IN STOCKS.
>> THEY’VE DONE GOOD JOB IN
PRESERVING CAPITAL AND
NAVIGATING VOLATILITY IN 2022
AND INVESTABLE STRATEGY NARROW
OF 2 AND A HALF PERCENT OF FULL
YEAR 2022 BUT IF I BIFURCATE
THOSE INTO TWO DIFFERENT GROUPS
BASED ON THE REASON THEY INVEST
IN HIM FUNDS, DIVERSIFIED
STRATEGIES AND DIVERSIFYING
STRATEGIES LIKE MACRO ARE 15% IN THE YEAR AND IN SEPTEMBER 2.8%
IN THE MONTH OF SEPTEMBER AND
STRATEGIES.
MARIA: OKAY, COMMODITIES ARE
DOING WELL IN THE FACE OF
STOCKS, TRADING DOWN.
THERE HAS BEEN SOME SERIOUS
DISORDERLY PRICING IN THIS
MARKET.
EITHER IT’S THE FEDERAL RESERVE
TELLING US THAT THEY ARE GOING
TO BE AGGRESSIVE AND TAKE RATES
HIGHER AND HIGHER DESPITE A
RECESSION OR WHAT’S GOING ON IN
THE UK IN TERMS OF THE TAX-CUT
PLAN THAT HAS CAUSED A COMPLETE
SELLOFF OF THE BRITISH POUND,
RECORD LOW YESTERDAY AGAINST THE
U.S. DOLLAR.
ARE HEDGE FUNDS PRETTY MUCH
SHORTING THIS MARKET.
IS THAT WHY THEY ARE DOING SO
MUCH BETTER BECAUSE THEY’RE
BETTING AGAINST STOCKS?
>> THEY ARE DEFINITELY BETTING
AGAINST STOCKS AND RECENTLY SO
AND WE ARE STARTING TO SEE -- I
WANT TO TALK ABOUT THE EQUITY IN
A SECOND BUT I WANT TO TALK
ABOUT CURRENCY FIRST BECAUSE
THAT’S THE STORY OF THE MOMENT,
IS THAT THE LONG DOLLAR
POSITIONS HAVE BEEN REALLY BIG
DRIVERS OF GAINS THUS FAR FOR
THIS YEAR AND IF THE VIEWERS
THAT CAN REMEMBER ALL THE WAY
BACK TO EARLY 90’s, IT’S
ALMOST A THROWBACK TO THE
QUANTUM FUND IN THE EARLY 90’s
WITH HEDGE FUNDS THAT ARE
GETTING ALONG THE DOLLAR, THEY
ARE SHORTING THINGS LIKE THE
POUND AND THE EURO AND YEN AND
THOSE ARE BIG GAINS SO FAR.
ON THE EQUITY SIDE IT’S BEEN
SELECTIVE.
YOU’VE HAD PEOPLE SHORT BUT WE
ARE STARTING TO SEE A FOCUS ON
EQUITIES AND PEOPLE BUILDING
POSITIONS EQUITIES OF COMPANIES
THAT HAVE CONSIDERABLE PRICING
POWER AND THAT ARE ABLE TO RAISE
PRICES TO DEAL WITH THE 9%
INFLATION THAT WE ARE
EXPERIENCING.
YOU ARE STARTING TO SEE HEDGE
FUNDS ADDING POSITIONS IN THESE
AND THEY ARE STILL STAYING AWAY
FROM THINGS THAT ARE NO
EARNINGS, EARNINGS ARE 5 YEARS
OUT WITH HIGHER INTEREST RATES,
PEOPLE ARE STAYING SHORT AND