Carlson Capital: the Fed is “bailing the drunks out of jail”

Carlson Capital’s Double Black Diamond fund was down 5.56%, outperforming the S&P 500’s 19.6% plunge. In his first-quarter letter to investors, which was reviewed by ValueWalk, Clint Carlson said the fund generated positive returns in the first stages of the selloff and generated all its losses during the panic stage, when investors sell whatever they can sell rather than what they want to sell. Due to Carlson’s conservative leverage and liquid portfolio, the fund did not have to sell any positions just to sell something. Strategies Carlson said the first quarter was a difficult one for their event-driven strategy, although…