Investors face a more imposing collection of risks than they did before subprime-mortgage losses spurred the biggest financial crisis since the 1930s, said Eric Upin, chief investment officer at Makena Capital Management LLC.
“The list of tail risks -- euro, banking crisis, deflation, global recession and many others -- is much longer with broader implications than anything we saw in 2007,” Upin, who oversees $14.5 billion at the Menlo Park, California-based money manager, said today at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link. “Those titanic forces are going to create tremendous undulations,” he said. “It’s a completely different playbook and one that needs to be very focused on lowering volatility and managing risk.”
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