Ray Dalio Sees 25% Chance of Recession This Year and in 2020 (Bloomberg)
Ray Dalio, the billionaire founder of the world’s largest hedge fund, said there’s about a 25% chance of a U.S. recession this year and in 2020 and that central bankers will be limited in addressing it. The Federal Reserve, European Central Bank and Bank of Japan “have to face the fact that when the next downturn comes there will not be the power to reverse it in the same way that existed before,” Dalio, 70, said Thursday in an interview on “The David Rubenstein Show: Peer-to-Peer Conversations.” He recommends that the Fed cut interest rates slowly, maybe by 25 basis points, without giving a time period.
Waratah Capital Launches Liquid Alternative Mutual Fund (Hedge Week)
Waratah Capital Advisors has launched the firm’s first liquid alternative mutual fund, the Waratah Alternative Equity Income Fund (WCAL4F). The new offering will operate pari-passu with one of Waratah’s flagship strategies, the Waratah Income Fund, providing high net worth (HNW) retail investors and their advisors with direct access to Waratah fund manager Jeannine LiChong. Liquid alternatives provide portfolio construction tools which offer the potential for added diversification and risk-adjusted returns. The Waratah Alternative Equity Income Fund is a long biased actively managed portfolio of North American equities, with a focus on Canada. The fund has the ability to use options and short positions for risk protection.
Hedge Fund Loses $1 Billion in One Month on Argentina Bet (The Wall Street Journal)
Autonomy Capital’s founder, Robert Gibbins, is known for making concentrated investments. Hedge fund Autonomy Capital lost about $1 billion last month largely on investments tied to Argentina, making it one of the most prominent investors caught on the wrong side of market turmoil in that country. The wager on Argentina