Hedge Funds Performance

Byron Wien puts credit over equities in year ahead


The credit markets, and especially certain distressed instruments, will likely outperform the market for equities in the year ahead, according to Byron Wien, who concluded as much after holding lunches on two successive Fridays at the end of August for a group of investors who spend summer weekends on the East end of Long Island.

Wien has organized these lunches for years, and “this was the first time in anyone’s memory that debt was preferred over equity at these meetings,” he wrote in his September commentary. Wien was Morgan Stanley’s chief strategist for years before moving to Pequot Capital