Jabre Capital sees further pressure on stock market from forced fund redemptions
The sky is falling!: The voices of gloom and doom were loud today as not only did Paulson & Co's John Paulson make comments at the GAIM International 2008 conference that the credit crunch isn't over and RBS issued a global stock and credit market crash warning for the next three months, but Philippe Jabre's Jabre Capital also believes that the market is going lower. In comments also made at the GAIM conference, they believe that forced redemptions will hit the market after June. According to a Reuters report:
Fund manager Renaud Saleur told Reuters on the sidelines of the GAIM International 2008 hedge fund conference that he had reduced his $200 million (100 million pound) Mangousta Fund's net long position to 10-15 percent, below normal levels, and may increase short positions as markets begin to fall.
"We expect markets to sell off further after June. We think there are lots of redemptions (from other funds) coming into the market," said Saleur.
Saleur is shorting textiles, because of the rising price of cotton, but does favor some industries, including oil services, fertilizer and radiotherapy stocks.
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