Here's the latest via Market Folly:
Lee Cooperman, [sic] founder of hedge fund firm Omega Advisors, last month gave a presentation entitled, "Observations regarding: life, hedge funds, the investment outlook" at Roger Williams University. Here are some of the highlights:
On Hedge Funds
- If you produce the returns, you'll grow. What separates the men from the boys is how you do during periods of adversity
- He again detailed his characteristics of an outstanding analyst or portfolio manager
- He tries to make money in 5 ways: market direction, asset allocation (stocks versus bonds), undervalued stocks on the long side, sell stocks short. and macro investing (and he candidly mentioned the egregiously high fee structure that hedge funds use as well)
- "Eat your own cooking" i.e. your capital is aligned with that of your investors
On Investment Outlook
- Moderately constructive US equity market view: no recession in forecast horizon, monetary policy accomodative, valuation reasonable, investors have derisked
- "Stocks are the best house in the financial asset neighborhood - it is still not clear whether it's a good or bad neighborhood." He touched on this at the Delivering Alpha panel as well
- China is slowing more than expected and needs to be monitored carefully
