Institutional Investor’s Alpha: “CQS Funds Bounce Back, but Hintze Sounds Alarm on Markets”
The article details the reasons driving Sir Michael’s caution and where he sees investment opportunities:
"There are uncertainties created by global geopolitical turbulence, rising populism, and political uncertainty in the U.S. ahead of November’s presidential elections," writes Hintze…
In Europe, Hintze points to June’s Brexit vote and critical elections slated next year in Germany, France, the Czech Republic, Hungary and Norway, which he asserts "are likely to add to the debate around what kind of Europe EU citizens want."
In Asia, he notes China’s moderating growth rate and Japan’s disappointing growth rate.
"In contrast, the U.S. economy appears to continue to grow, labor markets are tightening and the Fed is considering a more hawkish monetary policy," Hintze adds.
The article notes Sir Michael’s investment approach, given the current macro-economic conditions:
“The current environment lends itself to a multi-asset approach to credit investing, by allowing us to allocate to different parts of the credit spectrum as and when the prices of credit sub-asset classes swing," he adds.