Ken Heebner is known for his big bets and rapid trading at the CGM funds sits down with Consuelo Mack WealthTrack on public television for an interview . This week Ken Heebner describes his contrarian views on the U.S. economy and stocks, particularly housing and banking, and why he thinks bonds are so dangerous. We posted a preview of the entire episode earlier this week. Full video and summary below: Ken Heebner makes TWO BIG CALLS in his Consuelo Mack...
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Ken Heebner, co-founder of Capital Growth Management and portfolio manager of CGM Focus Fund, thinks bonds are especially dangerous right now, but he’s bullish on the housing market and on the largest U.S. banks. He’s scheduled to appear on “Consuelo Mack WealthTrack” on public television tomorrow to discuss his views in these areas, but we got a sneak preview of his interview today. He explained why he made such a huge short bet on...
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One day, when I was least expecting it, the Spanish Inquisition arrived, otherwise known as internal audit. IA: You run the GIC business. Me: Yes. IA: What functions do you control here? Me: I market, price, cashflow test, and reserve the GICs. I also direct hedging and investment policy. IA: Isn’t that too large of a concentration of power in your hands? You do everything. There are no checks and balances. Me: It allows...
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Stockman, former director of the Office of Management and Budget, told Tom Keene on “Bloomberg Surveillance” yesterday that the Federal Reserve is “off the deep end with this money printing, which is dramatically distorting and deforming the financial markets.” On Glenn Hubbard, Stockman said, “He is a brilliant guy who told Bush to cut taxes in 2001, cut taxes in 2003, oh, why you are at it, go have two unfinanced wars and don’t worry...
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In the currency market, one constant theme has prevailed for past several months which is, short the Japanese yen against the U.S. dollar. Despite the constant bashing by hedge funds of Ben Bernanke’s policies, which some believe will devalue the dollar, hedge funds love the dollar. In fact, the dollar is expected to appreciate against almost every other currency, even the mighty Swiss Franc, according to SocGen’s Hedge Fund Watch notes. The reasoning is...
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Jack Lew, United States Treasury Secretary spoke with FOX Business Network’s (FBN) Peter Barnes about his new role and his plans for managing the government’s finances. Jack Lew spoke about the sequester, saying, “Nobody thinks the sequester was the right solution; it was designed to be something that everyone would hate. Give it some time.” Jack Lew also discussed why the path to a grand bargain budget deal has been so complicated, saying, “Everyone knows...
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Will the U.S. Treasury market fall? Money manager Ken Heebner is counting on it. In fact, Bloomberg reports that Heebner bet 21 percent of his stock fund on it. U.S. Treasuries have been all over the place in the past few years, and for investors who have bet big one way or the other on them, times have been tough. Short sellers have mostly lost over the past few years, and we termed treasuries “the...
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Bank of America Merril Lynch (BAML) analysts have just put out a note regarding an extremely insightful survey which they conducted. The result of survey shows that many investors have been dumping US treasuries over the past several weeks. As per the BAML analysts: The survey was conducted between 01 February 2013 and 06 February 2013. A total of 74 Fund Managers responded to the survey. Responses came from the U.K., Continental Europe, Japan,...
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I recently had a chance to speak with Loomis Sayles’ Matthew Eagan who is co-manager of the famous Loomis Sayles Bond Fund led by Dan Fuss. We covered a number of topics ranging from the Fed, Europe, High Yield, Hedging Tail Risk, and many others. You won’t want to miss it as he’s a very bright PM. It should be posted Wednesday or Thursday on the CFA’s Inside Investor blog found here. I was...
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Hedge funds continue to outperform the S&P 500, as the diversified hedge fund composite index was down 0.46 percent in the week ending on Nov 14, while the S&P 500 (INDEXSP:.INX) was down 2.8 percent over the same period. As concluded by other outlets as well, commodity trading advisers have not been performing well this year. BAML’s hedge fund monitor reports that CTA was down -3.02 percent quarter to date. The only strategy with a positive index...
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As the election approaches, famed investor Leon Cooperman of Omega Advisors, explains why he’s supporting Mitt Romney and how he expects to see the “fiscal cliff” play out as the deadline nears. Video and computer generated transcript below: but first up tonight, with elections 12 days away, then the lame duck congress, including the fiscal cliff, we call on leon cooperman, chairman and ceo of omega advisers, one of the 40 businessmen behind the open letter, a critical choice for america...
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