"PERHAPS ONE OF THE greatest failings in the run-up to the financial meltdown was a lack of perspective -- an inability by many market participants to see the big picture. Not so with Kevin Duffy and Bill Laggner, principals of the Dallas-based hedge fund Bearing Asset Management.
With the help of their proprietary credit-bubble index, developed in 2004, the managers sounded early warnings on housing and credit excesses, and capitalized handsomely on their forecasts by shorting Fannie Mae, Freddie Mac, money-center banks and brokers, builders, mortgage insurers and the like.
Students of the Austrian school of economics, which espouses a free-market philosophy that ascribes business-cycle booms and busts to government meddling with interest rates, the pair is solidly in the contrarian camp, believing that the worst for the markets may be yet to come."
Thanks to Bear Mountain Bull, The Big Picture, & Controlled Greed for drawing attention to this article on their blogs.
If you find Duffy & Laggner's analysis insightful, or if you'd like to gauge the accuracy of some of their earlier calls, you may also want to take a look at some of the resources provided in our related articles section below. Enjoy the interviews.
Related articles and posts:
1. This Time It's Value Traps - John Rubino at Safehaven.
2. Interview w/ Kevin Duffy & Bill Laggner - VoiceAmerica.