Swimming against the investment tide when the tide is a central bank? You lose every time.

Dear Reader,

I find it is quite important to know the key characters in the investment market.  Sometimes it feels a bit like a Shakespearean play with goodies, baddies and fools   (Buffett, Milken, Cordier as examples )  all taking turns on the the stage.

Entering stage left followed by his bear is Russel Clark co- manager of the Horseman Global fund. He is reknowned as the biggest bear in Wall Street with a 94.67% short position.  You would think in these limping markets he would be doing just fine.  His fund is down 22% year to date.  That is insane. If you had bought an S and P etf you would be outperforming his fund by 36.31%!

It is important to have a view when investing. However sometimes you possibly should realise if you go up against a Central Bank cabal whose prime directive seems to be QE and meddling in the markets you are never going to win by being short.

Weirdly net assets for the fund are down to $263MM, from $488MM a year ago and $654MM in August 2017  (Zerohedge). The most surprising thing for me is how he even has any investors left. Being a one trick pony in these markets is clearly a recipe for disaster.

I will leave it up to you to consider whether he is a Goodie, Baddie or a Fool.  

Thoughts on a Wednesday.

Don