Bloomberg News

Biggs Stays Bullish on Stocks, Favors Equities in U.S., Asia

December 13, 2011

(Updates with closing price in fifth paragraph.)

Dec. 12 (Bloomberg) -- Barton Biggs, the hedge fund manager who increased bets on U.S. equities before the Standard & Poor’s 500 Index rallied this month, said he’s still bullish.

“I’m biased toward the long side,” he said during an interview on Bloomberg Television “In the Loop” with Betty Liu today. “U.S. big-capitalization, U.S. stocks and Asian stocks are the best houses in a fairly tough, bad neighborhood.” Biggs said equities may surge or drop 20 percent because of concern about budget negotiations and Europe.

The founder of Traxis Partners LP said on Dec. 2 that while he doesn’t want to be fully invested in equities, “it’s hard to get really bearish.” The S&P 500 rose 0.9 percent since then through Dec. 9.

His optimism on stocks has fluctuated along with the market. He reduced the net-long position, a gauge of bullish versus bearish investments, in the Traxis Global Equity Macro Fund to about 40 percent at the end of September before increasing it to 65 percent on Oct. 17 and 80 percent on Oct. 31, according to interviews Biggs conducted with Bloomberg News. On Nov. 21, he said he cut the figure to less than 40 percent and might go even lower. On Dec. 2, he said he’d raised the level to about 60 percent.

The S&P 500 dropped five straight months through September before surging 11 percent in October and dropping 0.5 percent in November. The benchmark gauge for U.S. equities fell 1.5 percent to 1,236.47 at 4 p.m. New York time today.

--Editors: Stephen Kleege, Jeff Sutherland

To contact the reporters on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net; Betty Liu in New York at bliu17@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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