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Benedicte Gravrand reports from Hedge Funds World Zurich, another very upbeat conference organised by Terrapinn (see details here), which started with a keynote from Peter Thiel, president of US-based Clarium Capital.
Peter Thiel on the future of hedge fund investing on a global scale
Mr. Thiel is a highly regarded global-macro and contrarian investor, and I guess one of his mottos might run along the lines of: ‘do not ignore the possibilities of the worst possible scenario’ or, more plainly, ‘open your eyes’. In his excellent paper titled ‘The Optimist Thought Experiment’, he recalls the history of globalisation and the history of bubbles, with special mentions of the ‘China’ bubble and the ‘Technology’ bubble, as well as the ‘Hedge Fund’ bubble. In this section, he says: “If the Great Boom ends well, then the hedge fund industry will outperform other sectors less leveraged to globalisation; in that future, there would turn out to have been no hedge fund bubble, just as there ultimately would be no China or technology bubbles. Inversely, a world where global financialisation stops is a bad world for hedge funds, but also for just about everything else. In such a world, global investing would no longer be possible. So would it be correct to invest in hedge funds as a way to invest in the Great Boom?” He proceeds to differentiate hedge funds according to ...................... To view our full article Click here
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