Bill Fleckenstein Is Restarting His Short Hedge Fund

Four years ago, hedge funder Bill Fleckenstein closed down his short fund to go exclusively long.

Now, Fleckenstein has announced he will reopen his short fund amid a bullish market, The Street’s Herb Greenberg is reporting. From the Street:

“For four years and counting, there was no reason to think about shorting,” [Fleckenstein] told me. “I survived from 2000 to 2009, even when the market was going up, because I made what the Fed was doing a key variable.”

When that variable changed, he figured “it would be impossible to make money on the short side. I knew the Fed and the other central bankers would print a tremendous amount of money and it would be impossible to be short until the time the bond market takes away the printing presses — I mean, forces them to stop.”

That’s where Fleckenstein thinks we are now.

“I could be off by a year, I don’t know,” Fleckenstein told The Street. “I may have to sit in cash for a year. I know the bond market will have to stop the Fed. Money printing was the problem and more of it won’t fix anything. But you can’t win that argument as a short until such time that the bond market stops it.”

Read the full report at The Street »

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