Top1000Funds reports on CQS founder Sir Michael Hintze’s warnings over interest rate risk and the chances of inflation.
Hintze noted that actions by central banks around the world - most notably the Federal Reserve – are having unintended consequences that could impact generations to come:
“Printing money is good for equities and credit, but not good for economies or our children. The chances of inflation are very high,” he says. “We are building in a rate-risk measurement as we think that is the biggest threat.”
Hintze also shared his outlook on the hedge fund industry, saying he believes there is a bright future for hedge funds, because “alpha is a big deal; people are hungry for alpha.”
In response to the search for alpha, Hintze noted that CQS is developing a bespoke alpha product, which will separate volatility, and return and allow investors to put the two together to suit their needs.
“We say here’s the return, here’s the volatility around the return, and then how do we put that together. It’s their product, it’s not commingled.”