With more bearish financial data on the way, a subscriber asks why CEO Keith McCullough doesn’t remain more net short for another week. In response, Keith explains his strategy for balancing longs and shorts relative to the broader hedge fund industry.
“If you think what I do is what everybody in hedge funds do, you don’t know what you don’t know,” McCullough explains in this clip from The Macro Show. “A lot of people think I’m out of my mind, me included, sometimes.”
For context, McCullough says some hedge fund managers don’t run net short anything. The world’s largest hedge funds run net neutral, and many more run 40% to 60% net long with leverage. Meanwhile, McCullough oscillates between -7% to -25% net short when he’s at his most bearish positioning.
"If you’re learning the game on the short side from me, that’s different,” McCullough explains. “No hedge fund manager in the world would say this is not bearish.”
Watch the full clip above.
