Seawolf Capital co-founder Vincent Daniel explains why private credit and direct lenders are taking market share from commercial banks.
Opinion
Daniel: Multi-managers like Citadel are new shadow banks relying on Fed bailouts
“So I really, truly believe that they are the new shadow banking system, that whenever something goes awry, there's a reason why Millennium hired who they hired, why Citadel hired who they hired, to make sure that when the calamity occurs, they call the Fed for…”
Insight
Daniel: Multi-manager volatility targeting dictates modern daily market flows
“The lower the volatility in the world, the more capital they're deploying. And that was a very interesting concept for us. A concept to that was an eye opening experience. And more importantly, probably now it is dictating a lot of the flows and the performanc…”
Insight
Daniel: High leverage forces multi-manager hedge funds into short-term momentum trading
“If you work at these shops, it took me a while to figure out, but almost all of them
Are 90, 95% of the time long short-term momentum, which is in English is long something that is working right now.
And when you think why they have to do it, if you're so leve…”
Opinion
Daniel: Energy was one of our career's greatest contrarian value trades
“One of, probably, I would say the biggest for us was when Exxon got kicked out of the Dow for Salesforce.com, Us schmucks, everybody else in the world goes and buys Salesforce.com because it's going to be in relative indices and the like. We go, let's take a l…”
Opinion
Daniel: Private equity faces valuation issues from mismarked assets
“I just feel like a lot of things are mismarked, which probably gets back to while I have a tremendous affinity for the private equity model, I think they have some issues and challenges associated with the assets they've deployed over the last two years.”
Assertion Not checkable as stated
Daniel: US sovereign debt is causing significant market crowding out
“And as a result, we've built up tremendous amounts of sovereign debt, which were, I guess, manageable when rates were at zero. Well, rates are not at zero anymore. So as a result, there's a tremendous crowding out factor that is occurring right now.”