WSJ: “Hooked on QE: Hedge Funds See Dangerous Addiction”
The Wall Street Journal highlights concerns raised by CQS founder and CEO Sir Michael Hintze and other leading hedge-fund managers about the impact of quantitative easing on global markets.
Speaking about the distorting effect of QE, Sir Michael noted:
“What does a market do? It’s a voting mechanism…Instead you’ve got this 800-pound gorilla out there who’s hoovering up assets.”
“There’s a misallocation of capital and an opportunity cost to the real economy,” added Mr. Hintze, whose portfolio is up 30% this year, ranking it one of the world’s top-performing hedge funds. “It means GDP is not growing as much as it might.”