NEW YORK Investors, policy makers, and analysts spoke at the Reuters Global Investment Outlook 2013 Summit in New York, London, and Hong Kong. Below are some memorable quotes from New York discussions:
BONNIE BAHA, SENIOR PORTFOLIO MANAGER AT DOUBLELINE CAPITAL: "The term (fiscal cliff) is going to become a new drinking game...My fear is that the can gets kicked down the road for at least a 6-month period."
STEVEN EINHORN, VICE CHAIRMAN OF OMEGA ADVISORS: On his selection for a possible successor to Treasury Secretary Timothy Geithner "If you ask who I'd like to see, those two (JP Morgan CEO Jamie Dimon or Erskine Bowles) would be terrific. And if either one were appointed Treasury Secretary, it would be worth something to the S&P 500 .SPX."
JASON ADER, CEO OF ADER INVESTMENT MANAGEMENT: "If you really look at new mortgage originations, it's very low, and the individuals are not out buying homes."
VERNE SEDLACEK, PRESIDENT AND CEO OF COMMONFUND: On whether he would invest with portfolio managers who have come out of S.A.C. Capital, given the insider trading scandal associated with several former staff: "We will definitely be much more critical in terms of our evaluations if somebody came out of (hedge fund) S.A.C."
DAMON SILVERS, DIRECTOR OF POLICY AND SPECIAL COUNSEL FOR THE AFL-CIO: "All matters relating to (Edward) DeMarco are mysterious to me."
TED SEIDES, PRESIDENT AND CO-CIO OF PROTEGE PARTNERS: "Funds usually succeed with the ethos of one leader. You need one driver and one back-seat driver… Starting a hedge fund is starting a business. It's not the same thing as being a talented analyst or even being a talented portfolio manager."
Seides on men in finance: "It's a male dominated industry. Men, particularly in financial services, are less self-aware than other men, and women generally."
MAX STONE, MANAGING DIRECTOR AT D.E. SHAW & CO.: "(Libor is) not inherently broken... You can strengthen the laws. But that's a problem that can and should be solved, and I think is largely solved at this point."
DANIEL YU, INDEPENDENT HEDGE FUND ANALYST: "Microsoft (MSFT.O) is a great short...Microsoft is this big Goliath in a room full of many little Davids who are very busy throwing slingshots at them."
MARGARET PATEL, MANAGING DIRECTOR AT WELLS CAPITAL MANAGEMENT "I am, in my fixed income allocation, virtually all in high yield because I still think junk bonds have the best risk-reward."
DAVID SCHAWEL, FIXED INCOME PORTFOLIO MANAGER: "I'm not a big fan of Mortgage REITs...There's a lot of dumb money that are chasing this in hopes of this yield."
TERESA HEITSENRETHER, GLOBAL HEAD OF PRIME BROKERAGE AT J.P. MORGAN (JPM.N): "The capital rules are going to prevent that 'back to old bad habits' again across the industry. The capital environments are going to be onerous enough that it will just not make economic sense to get beyond certain reasonable limits in leverage."
JOHN BRYNJOLFSSON, CIO OF ARMORED WOLF: "The fiscal cliff, we'll get through it because we know what Congress is going to do. They've done it every time for the past 40 years, which has been to spend more, tax less, have bigger deficits - and they're going to pat each other on the back and say 'we've done great.'"
HENRY KAUFMAN, PRESIDENT OF HENRY KAUFMAN AND COMPANY, INC.: "(Big banks) are too complex. They're too diverse...Spin off investment banking. No financial conglomerate should have a mutual fund operation in it. No financial conglomerate should have wealth management in it."
(Additional reporting by Svea Herbst-Bayliss, Emily Flitter, Herbert Lash, and Steve Johnson; Editing by Jennifer Ablan and Andrew Hay)