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By Lawrence Delevingne
NEW YORK, Nov 14 (Reuters) - Bruce Richards, chairman and chief executive officer of Marathon Asset Management, said the positive effects of U.S. President-elect Donald Trump’s economic plans would delay the opportunity to buy cheap distressed assets in the United States.
“The distressed cycle has been pushed out,” Richards said on Monday at the Reuters Global Investment Outlook Summit in New York. Marathon is an approximately $13 billion hedge fund manager based in New York that focuses on credit investments globally.
Instead of the opportunity hitting in about a year, as many investors expected, Richards said the cycle of credit expansion and growth would be prolonged for an additional one or two years.
Richards said Trump’s plan for tax reform, especially the repatriation of corporate taxes from U.S. companies operating abroad, would provide a “massive stimulus.”
That, combined with Trump’s plans for infrastructure spending and decreased regulation of the financial sector, would help increase economic growth in the United States, Richards said.
Richards said Marathon’s largest exposure was the debt and equity of commodity-focused companies. Steel-related businesses, for example, could benefit from the Trump administration’s potential tariffs on foreign production.
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For more summit stories, see Reporting by Lawrence Delevingne and Jennifer Ablan; Editing by Lisa Von Ahn