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‘Contrarian’ hedge fund betting on economic slump scores 163% return: ‘Everything is going down’

Mount Equity Group Tokyo Japan > News > Markets > ‘Contrarian’ hedge fund betting on economic slump scores 163% return: ‘Everything is going down’

An upstart hedge fund achieved a whopping 163% return last year by betting Fed rate hikes would cause economic chaos, according to a report Wednesday.

Investment manager Neal Berger’s Contrarian Macro Fund, which controls about $200 million in assets, placed bearish bets on stocks and bonds that grew bloated by overzealous investments during a period of lax fiscal policy, according to Bloomberg.

Berger launched the venture — which operates under the umbrella of his larger firm, Eagle’s View Capital Management — in April 2021 based on a hunch that the Federal Reserve would take a hawkish turn with interest rate hikes after years of lenient policy.

“The reason why I started the fund was that central bank flows were going to change 180 degrees. That key difference would be a headwind on all asset prices,” Berger told Bloomberg. “One had to believe that the prices we saw were, to use the…

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