The Founder of one of the world’s largest asset managers, the $30 billion hedge fund Blue Crest Capital, Michael Platt, spoke to Bloomberg yesterday about why present conditions are “worse than 2008” and why he is out of risk assets and prepared for the likelihood of a renewed credit crunch in 2012:
“The most important thing to remember about crises is you do not make your money going into the crisis. When you go into a crisis such as 2008, markets trade against positions. People have positions on and people need to get risk off. All the things that people thought were a good idea start going into reverse. The big money you make in trading is more in the aftermath of the crisis…No buy and hold”.