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Money managers under the microscope

Bearish Bullman

August 21, 2009

Stocks may have enjoyed a huge rebound this year (the S&P 500 is up 50 pct from its March low), but the rally is based on speculation, according to one hedge fund firm.

rtr1s6hiBullman Investment Management, which runs a global macro fund, has just put on short positions on the S&P and the financials sector via ETFs, manager Nick Bullman told me.

“The rally has been a dash for trash based on speculation,” he said, arguing that while stocks are back at pre-Lehman levels, fundamentals haven’t changed.

Only a week ago Crispin Odey, who had pointed to the start of a bull market early this year, said “markets are a little overbought and will probably have a pullback”.

Bullman is also downbeat on quantitative easing and thinks this could backfire as higher inflation works its way into the system, so has gone long gold.

(See also Odey eyes market pullback and Shorts suffer in the rally)


Surely it’s not a question of if the markets will crack but when. Western govts look bankrupt having taken the (debt) pressure off the corporates but can they sustain interest payments on this debt and if so, at what cost to their economies?

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