Xavier Rolet to Join Asset Manager CQS as Chief Executive (The Wall Street Journal)
LONDON—Former London Stock Exchange boss Xavier Rolet will become chief executive of CQS, taking helm of the privately held London-based credit markets focused investment house as it looks to expand beyond its hedge fund roots. CQS Cayman LP founder Michael Hintze, who currently serves as CEO, will become executive chairman and will continue as senior investment officer. He personally manages a $3.25 billion CQS credit focused hedge fund.
World’s Biggest Hedge Fund Says Stocks Aren’t Pricing in ‘Near-Recession’ U.S. Growth Next Year (MarketWatch)
Here’s Greg Jensen, co-chief investment officer of Bridgewater Associates, the biggest hedge fund in the world: “The biggest theme developing is that you are going to have significantly weaker growth, near recession-level growth in 2019, based on our measures, and the markets are generally not pricing that in,” Jensen told Reuters in an interview. Bridgewater expects U.S. GDP near a paltry 1% in 2019, with the rest of the world faring slightly worse. Consider that the most recent estimate of third-quarter growth was 3.5%, and that investors stampeded out of stocks this week partly because the Fed trimmed its own forecast to 2.3% from 2.5%. Meanwhile, the Atlanta Fed is forecasting about 2.3% GDP for 2019.
Some Good News for Hedge Funds (Bloomberg)
Bloomberg’s Peggy Collins reports on personnel changes at CQS, Bridgewater‘s Chinese fund and Baupost gains. She speaks on “Bloomberg Daybreak: Americas.” (Source: Bloomberg)
Baupost Is Said to Post Gain as Hedge Funds See Declines (Bloomberg)
Seth Klarman’s Baupost Group posted a gain of about 2.8 percent so far this year as the hedge fund industry is on track for a yearly decline. The Boston-based hedge fund’s return is year-to-date through November, according to people familiar with the matter. A spokeswoman for Baupost declined to comment.