Hedge Funds

Macro bears square off with micro bulls at SALT


Bass and Burbank warn of recession while Bader, Tananbaum and MBS investors push niche strategies.

  John Burbank

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