7 top hedge funds share their best bets

Alex Cowie

Bloomberg has asked seven of 2016’s top performing hedge funds where they see the best trades for 2017. A few themes dominated: the resurgence of energy and commodities, trading Trump’s policies, and how inflation versus rates plays out for bonds. On energy, Contrarian Capital makes the case that US energy stocks, as we are seeing here with mining, are well positioned to drive strong ROE after restructuring in the lean years. There are many angles to trading Trump, but Black Diamond fund warns that we could witness global depression and market collapse if a border adjustment tax is enacted. On bonds, CQS sees inflation coming, and likes the quasi-equity nature of con notes to trade it. Strangely, inflation is still a guaranteed yawn-fest for most investors, and even using the word 'Inflation' in a headline here at Livewire will guarantee the wire will bomb. My money is on this all changing quickly  as the inflation genie escapes from the lantern. Refer my 'Exhibit A' below showing inflation in EU, US, and Aus, and have a chew on the Bloomberg article for some hedge fund thoughts  on how to play it - and much more: (VIEW LINK)


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Alex Cowie
Alex Cowie
Content Director

Alex happily served as Livewire's Content Director for the last four years, using a decade of industry experience to deliver the most valuable, and readable, market insights to all Australian investors.

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