'The Big Short again': A hedge fund boss and Warren Buffett disciple posted a 40% gain during the market meltdown
"This is just 'The Big Short' again," Tavi Costa, Smith's co-portfolio manager, told Ozy."It's very difficult, and emotionally, it's just brutal."Smith's Buffett-esque patience shouldn't be a surprise. His father introduced him to investing by handing him a bunch of the billionaire investor's annual shareholder letters, he told Ozy."Buffett built his empire in Omaha," Smith told Ozy.
Embracing Buffett's long-term perspective and shunning herd mentality likely helped Smith to hold tight until stocks tumbled."It started from record highs, historic leverage, and the most fundamentally overvalued composite of multiples ever, higher than 1929 and 2000."BlackRock's $1.
Smith remains net short on stocks as he expects"much more downside" for equities and corporate credit markets, he told investors last week. The key reasons for his bearish stance — an overvalued yuan and banking and real estate bubbles in China — remain intact. However, Smith is ready to switch tacks once Crescat's macro model indicates that markets and the economy have bottomed.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus punishes Warren Buffett's equity holdingsThe coronavirus pandemic may have erased around $64 billion of value from Warren Buffett's equity portfolio at Berkshire Hathaway Inc , setting up the conglomerate for one of the largest quarterly losses ever by an American company.
Read more »
Elizabeth Warren on Why She's Not Endorsing a Candidate Amid PandemicElizabeth Warren: 'If we had put in place an effective plan to deal with the coronavirus back in January, we would have saved lives. We wouldn't put the stress on our medical system that we're putting on it right now and the stress on our economy.'
Read more »
‘Far more extreme than anything we’ve ever seen, including the worst weeks of the Great Recession’ — economist gasps as U.S. jobless claims jump 3,000% in 3 weeks‘This kind of upending of the labor market in such a short time is unheard of.’
Read more »
The first quarter's surprise outperformer was a farm commodityDuring the first three months of the year, one agricultural commodity gained 20.5% as global stock markets and other assets tumbled amid panic around the coronavirus crisis.
Read more »