Last week, I received Passport Capital's quarterly letter. I have remarked in the past, that I believe Passport Capital's John Burbank is one of the most creative thinkers and investors in the hedge fund world. While macro is definitely not my specialty, Passport brings a level of expertise to various regions of the world that are simply unparalleled. The results speak for themselves: Since inception in August 2000, the fund is up ~22% net on an annualized basis.
"Generally, we are "bottom-up investors." However we are living in a climate where these economic and political considerations are at least as - if not more - important than underlying fundamentals in forecasting investment outcomes. Given the great uncertainty described above and sentiment levels that reflect it, I can foresee scenarios where securities could trade much higher - or much lower. Happily, as Warren Buffett has pointed out, we operate in a "no strike" game, which is to say that we can let many pitches pass us by before swinging at the ball that comes right to our sweet spot."