During his recent interview at Sohn, Stanley Druckenmiller explained why we will have unbelievable opportunities in the next couple of years. Here’s an excerpt from the interview:
Q1 2023 hedge fund letters, conferences and more
Druckenmiller: I’m happy with a portfolio right now that is not net short or not net long and only about 60 percent gross, because funny things happen when you get chaos.
The Playbook I’ve always used if I expected a bad economic outcome is to own treasuries.
Well with the 10-year yielding 350, or wherever it is today, and Fed funds at five that’s not exactly a fat pitch.
What if you’re wrong, and what if the FED panics and you get an inflationary outcome?
So that asset class is sort of off the table. We can talk about the dollar in a few minutes. I don’t have some massive short dollar position.
I may have been a little misinterpreted in an interview I did a week ago but it is a position that will move the needle at my firm.
I don’t know how long I’m going to stick with it but that is something we’re doing. But for long/short guys out there I would say you’re going to have unbelievable opportunities in the next coupla years.
There’s a lot of dispersion within industries and just make sure to preserve your capital until they present themselves. And I wouldn’t go crazy on the short side for that reason either.
You can watch the entire discussion here:
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Article by The Acquirer’s Multiple.
