Hedge Fund CIO: "A Potentially Massive Trade Is Setting Up For Later This Year"

By Eric Peters, CIO of One River Asset Management

“My trades all worked out, most for the wrong reasons,” said Alpha, PM at one of the big multi-managers. “My bet on higher rates went further than hoped, never expected the catalyst to be Iran,” he said. “But I did get short gold on a capital destruction and financial conditions tightening trade once the war opened up the rate distribution for hikes,” said Alpha. “Saw the potential need for sovereigns to sell down their gold reserves to make up for lost oil revenue, and there was a lot of sloppy retail money in it too,” he said. “Then again, I was probably the one guy who didn’t make money long gold in January.”