2014 Investor Outlook: Morgan Creek’s Mike Hennessy sees investors playing “time arbitrage”
By Simone Foxman
Wed Jan 15, 2014
Predictions for the next year from the co-founder of $7 billion fund of funds Morgan Creek Capital Management.
co-founder of $7 billion fund of funds Morgan Creek
What hedge fund strategies will do
best in 2014? Why?
Last year we broadly favored equities over credit, but after
a surprisingly exceptional 2013 in equity markets, we would now
be more guarded and strongly advocate for diversification among
a wide array of asset classes, strategies, and risk factors. We
still favor equities over credit, especially considering where
rates and spreads are and the risk-reward profiles therein.
Within equity, we would favor a long-short approach where a
skilled manager goes long "good" companies and shorts "bad"
companies, pulling a spread out of the differential. We think
this makes sense due to...
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