Macro bears square off with micro bulls at SALT
By Lawrence Delevingne
Mon May 14, 2012
Bass and Burbank warn of recession while Bader, Tananbaum and MBS investors push niche strategies.
LAS VEGAS - Macro hedge fund managers' gloomy forecasts
about the world economy contrasted with rosy forecasts for
niche credit, distressed and mortgage strategies at the 2012
SALT Conference in Las Vegas. John Burbank of $3.8 billion
equity-focused Passport Capital reemphasized his bearish views
on Western economies Thursday, predicting that the U.S. would
join Europe in recession during the second half of 2012. "It's
not a popularly believed thing, but I think it's happening,"
Burbank said, noting Passport was net short U.S. equities.
"When the Western world and U.S. does that, you don't want to
be in [emerging markets]," he added. Kyle Bass of $1.1 billion
Hayman Capital Management repeated his longstanding Japan short
thesis, comparing the country's unsustainable debt levels to a
Ponzi scheme. "Madoff...
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