David Neuhauser of hedge fund Livermore Partners on CNBC discusses that global markets are contracting and the markets will see more volatility.
To Partners and Friends,
Markets are on edge given the latest dynamics in financial conditions of the banking sector. These are treacherous times with a most uncertain future.
Q4 2022 hedge fund letters, conferences and more
This weekend’s news of Credit Suisse Group AG (NYSE:CS)’s takeover (actually under) by UBS blends right in with our interview from just last week in Singapore. We are positioned well for this uncertainty as $USD debasement is ringing loud and owning hard assets such as oil and gold companies are proving the correct call.
We did hold two banks (UniCredit (BIT:UCG) and Spanish bank, Banco Bilbao (BME:BBVA)) early in the quarter but sold the positions on first whiff of the Silicon Bank Valley (NASDAQ:SIVB) debacle. Both stocks are now off more than 15%+ since our exit. Which reflects a good move by the PM and our opportunistic nature of the fund getting positioned ahead of the curve.
Looking forward, we see more potential for weakness in markets as the probabilities of further downside are very possible, but not certain. Therefore, watching for select special situations to form (as volatility reigns) will be at the forefront.
All the best,
David Neuhauser
