Interview with Hugh Hendry

Featuring Hugh Hendry

Hugh Hendry made his name achieving outsized returns as the financial crisis deepened. The forthright head of Eclectica Asset Management talks to us about the business of running a hedge fund.

Published on
2 September, 2016
Topic
Macro, Investment Framework
Duration
62 minutes
Asset class
Equities, Bonds/Rates/Credit, Currencies
Rating
83

Comments

  • AS

    Andrew S.

    15 9 2017 14:22

    0       0

    "Markets Are Wrong": Hugh Hendry Shuts Down His Hedge Fund"..... Just curious but where did the rest of comments on this story go?

  • JF

    John F.

    4 10 2016 03:01

    0       0

    Hugh, from his appearance and conversation seemed a bit burned-out. Raoul was the perfect friend and listener. Hugh reminds me of people in the Arts. And I hope he considers something like that for a hobby. Winston Churchill painted.

  • AE

    Alex E.

    14 9 2016 08:20

    3       0

    Hey Raoul, did you slip a sedative in Hugh's tea? He was a lot less maniacal from the last interview he did with you. All in all, good stuff though you guys went above and beyond on the hedge fund lingo! Kinda left me in the dust, as it were...still good pointers.

  • AG

    Alexander G.

    9 9 2016 08:33

    2       0

    full of nice sounding phrases, but bit short on substance from HH. Why the universe would have a plan for creditors vs debtors (or bond vs equity returns) to even out is beyond me.

  • M

    Mark .

    8 9 2016 19:01

    3       0

    I hope RV will do a separate video on what they specifically mean on the debtor / creditor thing.

  • RA

    Robert A.

    7 9 2016 00:25

    4       1

    I think if we can get the creditor vs debtor bit right many trades will fall into place. I wonder why I was so comfortable with debt when I was younger and am terrified of it now? Demographic headwind

  • RS

    Rob S.

    5 9 2016 19:12

    7       0

    Bose noise cancelling headphones, good cup off coffee,
    and RVTV. nice way to spend a rainy morning! good lads

  • JU

    Jay U.

    5 9 2016 03:59

    2       0

    It seems like there have been some macro plays recently... the dollar-yen move in 2013, the dollar-euro move in 2014, and the gold move this year were all pretty strong. Is a 12-18 month period that short of a trend? Maybe I've never lived in times where there were longer trends.
    On the larger theme, it does seem like it ought to be a great time for macro - hedge fund returns are mean-reverting, so if it's been a period of poor macro returns, we ought to enter a period where macro starts to outperform.
    Anyway, really enjoyed the interview.

  • BB

    Bradley B.

    4 9 2016 18:02

    9       1

    I can see an entire piece on the advantages of being a debtor versus a creditor in the current environment being a V Rated episode in the future. *Hint Hint*

  • Js

    Johns s.

    4 9 2016 16:07

    1       0

    Good

  • E

    Erik .

    4 9 2016 06:57

    4       0

    As a hedge fund manager going through a tough macro period (for myself at least) 2 things strikes me again. Correlation is a killer and insurance is a (necessary) grudge purchase, the cost of which few sees. There's no comments column on the scorecard...

  • WS

    Wm S.

    4 9 2016 02:56

    6       0

    Love the ending: Raoul and HH *both* confess to being leverage users. HH's skateboard park metaphor was excellent, and how the momentum of $ from creditors to debtors in a NIRP enviro makes leverage a no brainer. Very provocative idea...and not w/o risk!

  • PR

    Peter R.

    3 9 2016 22:39

    5       0

    Great interview, Hugh is mad as a hatter, and reminds me of Brad Pitt in the brilliant movie Twelve Monkeys but lots of interesting ideas to think about for future trades. Challenging and informative, RTV at it's best.

  • CB

    Conor B.

    3 9 2016 22:28

    17       4

    Raoul kept trying to extract some substance from HH but he just meanders onto tangents or recounts trades from a decade ago. Disappointing.

  • jh

    jim h.

    3 9 2016 18:10

    1       0

    I always enjoy HH. He's always thoughtful and has rigorous work behind his themes. But the euro-look attire had me expecting him to bust out with 'safety dance' at any moment. Google it, Millennials!

  • HS

    Hubert S.

    3 9 2016 16:14

    7       0

    He is clearly a brilliant guy. But the lesson for individual investors is: "be happy not to be a hedge fund manager".
    It is SOOO MUCH easier to perform, when you are allowed to go down 20, 30 or even 40%.

  • RE

    Rachel E.

    3 9 2016 14:23

    17       0

    I would rather listen Hugh interview Rauol.

  • FC

    Fractal C.

    3 9 2016 10:50

    1       6

    preventing drawdown is important. however, making money is equally or more important. take Paul Tudor Jones retuns over last 8 or so years. PTJ has a very low drawdown but he is at least matching s & p returns in a very rough period for his fund. so, its not very convincing that low returns are due to focus on preventing drawdowns.

  • NR

    Nuno R.

    3 9 2016 08:11

    3       1

    Thanks RVT, another great conversation between 2 top guys.

  • FC

    Fractal C.

    3 9 2016 00:37

    18       4

    Wow. So much analysis for 1.8% cagr? Is he too risk averse or is he over complicating things resulting in analysis paralysis?

  • FC

    Fractal C.

    3 9 2016 00:37

    1       3

    Wow. So much analysis for 1.8% cagr? Is he too risk averse or is he over complicating things resulting in analysis paralysis?

  • BJ

    Brent J.

    2 9 2016 23:52

    2       0

    meant to say "stream of consciousness" but I guess when it comes to Hugh that confidence works as well

  • RI

    R I.

    2 9 2016 23:52

    2       5

    Is there an ETF-like security through which one can participate in Hugh's Italy-Germany bond spread widening trade idea?

  • BJ

    Brent J.

    2 9 2016 23:49

    8       0

    Hugh is just a stream of confidence. love listening to him and thinking about macro. Interesting to see investors as well as Hedge Funds leaving this arena when its now more important than ever (IMO)...

  • MS

    Michael S.

    2 9 2016 21:04

    10       0

    Always appreciate Hugh's commentary and perspectives. Whether I agree with him or not.. I always listen to his views.

  • AG

    Alex G.

    2 9 2016 19:28

    17       0

    Hugh is the best at combining interesting macro thoughts and deep understanding of self with some humor

  • RM

    Richard M.

    2 9 2016 17:42

    23       2

    It's been awhile since I've seen a lengthy talk from Mr Hendry. He seems so much more calm and collected, yet still as brilliant as ever! I think they are both right - now is a good time to revisit the global macro thought process - I too believe an inflection point will soon be upon us. RVTV continues to keep us aware and thinking big thoughts - bravo Hugh and Raoul. Many, many thanks for such a stimulating conversation between two macro giants!

  • SD

    Salvatore D.

    2 9 2016 16:19

    11       0

    Best confessional interview between two titans. It's all about being right 'at the end' or die.

  • lb

    leonardo b.

    2 9 2016 16:04

    8       0

    Amazing... truely thankful to be able to watch these discussions!!!

  • JS

    John S.

    2 9 2016 13:19

    10       1

    Outstanding!

  • CC

    Christopher C.

    2 9 2016 12:46

    31       0

    Best quote in my opinion. "Getting the trade right and having liquidity come to us so we can close the trade. That is macro. That is macro."