Sun, Aug 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fiscal drag is a bigger issue than the fiscal cliff

Thursday, December 13, 2012

amb
Mark Okada
Bailey McCann, Opalesque New York:

Fiscal drag is the next big economic issue in the US, more than the fiscal cliff, according to leaders at Highland Capital Management. Mark Okada, Co-Founder and CIO, and Patrick Boyce, Partner and Head of Private Equity, offered their outlook for the next year to members of the media earlier today in New York. During the discussion, both Okada and Boyce voiced concerns that looming changes to the tax code, and the inability of congress to craft a viable debt servicing plan will only add to the drag on growth in the US economy.

Highland Capital Management is a Texas-based investment firm with approximately $19bn in assets under management. The firm focuses on global alternative credit strategies and amounts to one of the larger players in the space. In addition to credit, the firm also offers alternative investments including emerging markets, long/short equities and natural resources.

"If politicians understood, what the uncertainty around the debt ceiling conversation is really doing to the markets and the broader economy they would've resolved this issue a long time ago," Okada said. Highland does not expect that the US will go off the cliff, they expect a short term deal and then a bigger fix down the road. However, they do expect that the Bush tax cuts will expire for the wealthiest in the US.

Moving into 2013, both men expect that the fiscal drag will ultimately create winners and losers in the equity mark......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius