Paul Singer of Elliott Associates is bullish on gold, Jeff
Vinik of Vinik Asset Management is optimistic about housing and
Lee Ainslie of Maverick Capital thinks hedge funds are set to
outperform in 2013.
Singer (Photo: Bloomberg)
Those were some of the views expressed yesterday at Morgan
Stanley's annual hedge fund conference at The Breakers hotel in
Palm Beach, Fla. The event, organized by the bank's prime
brokerage division and traditionally featuring some of the most
prominent managers in the industry, is closed to the media.
Singer said during a panel discussion yesterday that he is
bullish on gold and worried that the government's seemingly
endless printing of money will not end well, according to
an investor in attendance.
The panel--moderated by Morgan Stanley's chief U.S.
economist, Vincent Reinhart, and featuring Vinik, Ken Ebberts
of Goldman Sachs Investment Partners, Michael Novogratz of
Fortress Investment Group and Rob Citrone of Discovery Capital
Management--was asked to grade Ben Bernanke. Everyone on the
panel gave the Federal Reserve Chairman an "A" or a "B;" Singer
gave a "D."
A spokesman for Elliott declined to comment.
One trade the panel agreed about was to short the 10-year
U.S. treasury, according to the person in attendance.
Vinik also strongly recommended gold, saying that he bullish
on global mining equities, according to the audience member.
Vinik also noted that the housing recovery is real and that
there would be 10% to 15% per year price increases each of the
next three years.
Vinik did not respond to requests for comment.
Another panel yesterday, titled "Trends in the hedge fund
industry," featured Lee Ainslie of Maverick Capital, who said
that "new capital has very different expectations," referring
to institutional investor views on lower volatility and lower
returns, according to two people in attendance. Ainslie also
said the biggest surprise for the hedge fund industry in the
next three years would be its production of above average
An external spokesman for Maverick, Fraser Seitel of public
relations firm Emerald Partners, declined to comment.
That panel also featured Neil Chriss of Hutchin Hill
Capital, Sheldon Kasowitz of Indus Capital Partners, Sean
McGould of Lighthouse Investment Partners and Andre Stern of
Oxford Asset Management.
Today, panels are set to feature more big names: Dmitry
Balyasny of Balyasny Asset Management, James Dinan of York
Capital Management, Glenn Dubin of Highbridge Capital
Management, Jacob Gottlieb of Visium Asset Management, John
Lykouretzos of Hoplite Capital Management, Eric Mindich of Eton
Park Capital Management, Dan Och of Och-Ziff Capital
Management, Larry Robbins of Glenview Capital Management, and
Ricky Sandler of Eminence Capital.
Steve Cohen of SAC Capital Advisors is not set to speak,
although he is in attendance.
The dinner speaker tonight is Chris Gardner, the
rags-to-riches trader memorialized in the book and movie "The
Pursuit of Happyness." Yesterday it was Colm Kelleher, Morgan
Stanley's co-president of Institutional Securities.
Darren Levy, Morgan Stanley's head of capital introductions
for the Americas, said during introductory remarks that 64
hedge funds averaging $9 billion in assets are presenting at
the conference and 323 investors from 260 different investment
firms are in attendance, according to the investor in
Morgan Stanley did not respond to requests for comment in
time for publication.