We have come back to San Francisco for a 2010 update on the hedge fund industry on the U.S. West Coast.
The Western world has run up massive deficits in an effort to stabilize the markets and economies, but the financial system has not been meaningfully repaired. The authorities have not structurally changed the financial system: “All we did was provide huge amounts of liquidity.The markets are as vulnerable to financial shocks and at least as highly leveraged than they were before the financial crisis. The Fed has more than doubled its balance sheet and will have to exit markets at some point or its legitimacy will be called into question”, says John Burbank from Passport Capital.
“Armageddon” strategies and how plan sponsors have changed their game during the past 18 months
Burbank added that a number of people have asked Passport to design funds comprised of macro trades that would help them hedge against systemic risks. Jay Gould from Pillsbury also helped creating distaster insurance or “armageddon strategy” funds to which work under the premise that U.S. will experience a very difficult time over the next several years, “including hyper-inflation, the abandonment of the U.S. dollar as the world’s reserve currency, further complications associated with our huge deficit spending, and a rush toward hard assets.”
In this Roundtable, you will also hear from Nuveen's Ranjit Sufi how plan sponsors have changed their strategies during the past 18 months. This Roundtable further covers:
Overview of the latest products and research from funds and CTAs on intermarket correlations and quantitative trading
A discussion on the impact the regulatory changes will have on the markets: How will mandating more OTC products to clear/trade on an exchange impact liquidity? What is more important in a derivatives contract - liquidity or flexibility?
The democratization of alternatives: More funds using the 1940 Act format will be offering real CTA strategies with daily liquidity
Running a hedge fund from the West Coast: Why this location counts and where West beats the East Coast.
The Roundtable was sponsored by the CME Group. We also thank the Opalesque 2010 Roundtable Series Sponsors Custom House Group and Taussig Capital for their support, as well as Pillsbury for providing the meeting venue for our team:
John Burbank, Managing Member and Chief Investment Officer, Passport Capital
Jay Gould, Partner, Pillsbury
Jeremy Evnine, President, Evnine & Associates, Inc.
Matt Osborne, Executive Vice President & CßIO, Altegris
Ranjit Sufi, Manging Director, Nuveen
Rishi Narang, Founding Principal, Telesis Capital
Tina Lemieux, Managing Director of Hedge Fund and Broker Services, CME Group
Tom Shanks, Founder and CEO, Hawksbill
Enjoy the read!
Director Opalesque Ltd.
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