“In the past, you see dislocations maybe twice a year. But now it may end up being more stretched out where it would be two years or three years before you see a big move,” Yong said. “If and when that happens, my belief is it will be a lot larger than it used to be.”
(Dec 10): Dymon Asia Capital (Singapore) is positioned so that almost one-third of its macro hedge fund’s portfolio would benefit from black-swan market events and dislocations, Chief Investment Officer Danny Yong said.
The rising popularity of passive and algorithm-driven investing has helped fuel “enhanced market complacency,” Yong said in an interview with Bloomberg Television. While outsized market moves are becoming less frequent, the next major correction could be as big as the global financial crisis, he said.
