Hedge Funds Brace as QE Turns to QT – Wall Street Journal, February 14 2018
Lee Robinson was quoted in a recent article in the Wall Street Journal about the effects of QE
“With the great unwind of quantitative easing underway, some hedge fund executives are bracing for further trouble ahead…
Monaco-based Altana Wealth, headed by former Tudor Capital manager Lee Robinson, has been recommending clients switch from portfolios betting on rising prices to portfolios betting on both rising and falling prices since before last week’s market slump.
The effects of QE, and the extent to which it has propped up markets and economic growth, are still unclear. Even less understood is what happens when QE is withdrawn – a process termed QT, or quantitative tightening.
“The fact that QE is turning to QT this year, and you’re going from an absolute peak of QE in the summer of 2017 to this year when it looks like overall QT, to me that warrants caution,” said Mr. Robinson, who previously co-founded hedge fund Trafalgar.”
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