Silver Lining for Hedge Funds in Turbulent Market
Source: HedgeWorld - January 23, 2008
January 2008

SCM Advisors' Chief Strategist Maxwell Bublitz was quoted extensively by Chidem Kurdas, New York Bureau Chief for HedgeWorld, in an article about new opportunities for making money because of heightened market volatility.

Quoted from HedgeWorld:

...the debt market remains a tough place. The Federal Reserve was too timid in 2007 to break the psychology of a self-feeding recessionary spiral, according to Max Bublitz, chief strategist at SCM Advisors LLC, a credit manager. The inter-bank market cleared since the summer, but asset-backed and high-yield transactions are still mostly frozen.

He said he hopes that another interest rate cut of 50 basis points at the Fed's meeting next week, together with the fiscal stimulus package the Bush administration and Congress are cobbling together, will be enough to stop the psychological spiral of weakening confidence.

On the other hand, the heightened volatility provides more ways to make money. For nimble traders who can take advantage of the changes and uncertainty, this is an exciting time. As Mr. Bublitz put it, one thing we know for sure is that opportunities will abound.

It's possible that capital will abound as well, at least for managers positioned to take advantage of the particular conditions.

www.hedgeworld.com