Eye On Leadership...

Two of my Partners here at the firm, Brian McGough and Howard Penney, we're outstanding Morgan Stanley analysts, and they often talk of their experiences working there. One of their favorite people at Morgan Stanley was hall of fame Strategist, Byron Wien.

In a sign of the times, as supply growth in the hedge fund industry finally begins to slow, and growing pains emerge, Byron Wien has moved to a hedge fund - Pequot Capital. He is their Chief Investment Strategist.

For those of you who missed Byron's interview in Barron's this weekend, it should be on your required reading list. I am not going to dissect why I disagree with two thirds of his current market views; it’s too late in the trading day, and I need to manage the close. I have long been a big fan of Wien's work, and he deserves all the respect our industry has given him.

That said, since Wein points out that the research business has reached a critical crossroad, I’d like to highlight one of the points he made that is indirectly aligned with my views of global macro risk management.

Barrons: "How do you compare this market with others you've seen in your career?"

Wien: "This market is different because globalization has changed the nature of investing. When I started as a securities analyst (1965), I was focused on U.S. equities alone, and I didn't know much about what was going on around the world, and I could do my job very well; today, you can't."

This business is Schumpeterian, on many levels. Creative destruction always allows someone to enter the game and do something that everyone else says "you can't" do.

I for one have lived my life for that very cause. It’s what gets my feet on the floor every morning. It's "Macro Time". Let's drop the puck and get this game started.
KM

(Wien pictured recently in BusinessWeek)

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