Ackman closes his short bet
Oct 24, 2023
Prominent hedge fund manager Bill Ackman covered his short bet on US Treasuries, noting “there is too much risk in the world to remain short bonds at current long- term rates.”. “The economy is slowing faster than recent data suggests …”. This comes after his hedge fund Pershing Square had disclosed in early August shorting long duration Treasuries via options as structural change, deglobalization and the energy transition would fuel inflation pressures and a flood of bond supply to fund swelling US budget deficits could push yields higher. While the head line figures on the US economy remain strong, there is growing anectodical evidence the US is feeling the heat of the high interest rates. We continue to like bonds but still shy away from taking too much credit and duration risk in our portfolios.