Money managers under the microscope
The new wrong
Most hedge funds agree that the credit crisis has thrown up some interesting assets at bargain-basement prices, particularly in credit markets.
That’s the dilemma facing many fund managers, some of whom have got burned by snapping up asset-backed securities and other assets too quickly.
After all, a security that has fallen 90 percent is one that has dropped 80 percent and then halved.
Chris Woods, chief investment officer at Man Global Strategies, speaking at Wednesday’s Euromoney bond conference in Westminster, helps us out.
“Just as 50 is the new par, so early is the new wrong,” he says.
As investors have found, it may be cheap, but it could get a lot cheaper.