$10B Hedge Fund Manager Is Betting On A Big Crash Within Two Years

SMEinfo.my

Perry Capital, a NY hedge fund worth $10B, has just placed a massive bet on the economy going south in the next few years.

Perry, run by former Goldman Sachs banker Richard Perry, bought $1B in credit default swaps on roughly 10 investment-grade corporate bonds. He joins Sam Zell and Blackstone's Tony James, among others, in predicting a recession is just around the corner. 

Richard didn’t reveal which companies he’s betting against, but did say they’re all in a position to get hit with a double-whammy of technological disruption and a 2008-type credit event, Business Insider reports.

Richard says the 10 businesses are in sectors “where the technology” used to be “fundamental and essential,” but could soon be obsolete, like film cameras or radio.

Perry used BlackBerry as a specific example of the type of firm he’s targeting and predicted that “we will go into a credit cycle sometime over the next year or two.” [BI]

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