Hugh Hendry - The Eccentric Hedge Fund Manager

Monday, October 12, 2009

I have found this very interesting article about my favourite hedge fund manager on Seeking Alpha. Here in the Oil Traders Blog you can watch all of Hugh Hendry`s videos. He is not only insightful but very fun to listen to.

"Hendry does not have the notoriety of a Jon Paulson but he has been prescient in many of his calls - plus he has agreed with me on many topics (always a bonus).

As a guest, he is incredibly engaging with wicked wit (snark) and the ability to dance around (or verbally undress) opponents. He is a bit cocky though. I am posting a series of 4 videos from this month - all before the Fed decision to go Banana Republic, but in case you missed it, the United Kingdom chose the same path (create debt with one hand of power, and buy it with the 2nd hand), so much of what he talks about applies to both countries. He is firmly in the deflation camp and no matter what amount of printing presses, he thinks we're going Japan.

Unfortunately for those who disagree with him he has been spot on, on his calls up to here - I don't have firm data on his performance but he says he made 32% in 2008 and is up 10% through March in 2009, which spanked the pants off most professionals worldwide. "Pundit-wise" he has been nailing things. At the bottom of this post is an "editorial" he wrote back in November 2008.

Inflation will become a reason to worry for authorities again at some point, but they should think about combating deflation right now, Hendry said. "It is coming back in the future. All I'm saying it is just an unprofitable proposition at the time," he said. Betting on inflation is as if "we got a new book and we've read the last page. But if you read the entire novel, it's a different journey."

The market has grown for about 30 years and for a long period, it will be "going nowhere," Hendry said, likening this period with the one after the crash of 1929 and with the crisis in Japan at the beginning of the 1990s, despite claims that this time it is different because the world has evolved."


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