The financial crisis from recent years is very comparable to the 1920s financial crisis and is just going through a cycle, said the outspoken hedge fund manager Hugh Hendry at the GAIM 2011 conference in Monaco.
I see world events which are confronting us today in a cycle of time, said Hendry, Founder and Chief Investment Officer at Eclectica. For instance, look at Greece. I can see their precedence 70 to 80 years ago. If you look at the 1920s and 1930s, when Germany conducted reparations, those debt levels are nothing like what we have on Greece and everything points to restructuring event. In the 1920s, there were the investment trusts which were like hedge funds of their day and then came the great economic breakdown and that generation died out and the new one came through.
While debating with renowned private equity market participant Jon Moulton, Chairman at Better Capital on Wheres the Smart Money Going? at the GAIM 2011 conference , Hendry added that despite the current climate, investors should seem longevity in their investments.
My advice to investors is to think about longevity and seek a manager who has been through dramatic changes and that are still here, said Hendry.
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