This is a strategy we have held in our portfolios for a decade. This was a chance for us to get an update with the team, a view on the market and how the fund is being positioned. In terms of views on the market, this is important as it feeds into how they are positioning the strategy.
They feel that the likelihood of a recession is high and that really that changes if something fundamentally shifts with inflation, and the Fed changes direction. If you look at the data everything is pointing to a recession.
Data like the national financial conditions index is showing that things are tight, the costs of running a business are going up, new business optimism is down, the cooper index is another marker, and this is coming down, banks are now cutting back on lending and 30-year mortgage rates are now 40% higher…..read more