“The best course of action is to take risk off,” said Highbridge Capital’s Glenn Dubin at SkyBridge Capital’s hedge fund confab in Las Vegas. Dubin thinks there is a lot of risk in the market now, and Highbridge is reducing its balance sheet dramatically, moving to a defensive position.

“We are seeing massive de-risking and de-leveraging,” Dubin’s told CNBC’s David Faber. He also called Germany’s move to ban bearish bets on certain European debt and financial stocks “ill-advised.” As for the Volcker rule, which would affect the JPMorgan-owned Highbridge, Dubin said he disagreed with its premise because financial the business is not too big to fail and, therefore, not in jeopardy being bailed out by taxpayers.

Jamie Dinan of York Capital, also at the SkyBridge conference, told Faber his firm is taking risk off the table. “We don’t usually try to overreact to external stimuli, unfortunately the stuff around here right now is more than just noise.” It also doesn’t help that Germany “just doesn’t seem to get it.” York is increasing its hedges in equities and taking risk off in its credit portfolio, Dinan said.

Comments (7)

  1. Posted by Anonymous | May 19, 2010 at 4:44 PM

    You’re starting to grow on me Zach. Just like my genital warts.

  2. Posted by Anonymous | May 19, 2010 at 4:50 PM

    @1 Comments are closed. Please respect.

  3. Posted by Anonymous | May 19, 2010 at 4:57 PM

    “Dubin said he disagreed with its premise because financial the business is not too big to fail and, therefore, not in jeopardy being bailed out by taxpayers.”

    Proofreading is underrated.

  4. Posted by Anonymous | May 19, 2010 at 5:14 PM

    @1 – Agreed.
    His unique brand of no humour, uninteresting facts and dull writing makes for an infectious cocktail!

    BECAUSE FINANCIAL THE BUSINESSS

    NOT IN JEOPARDY BEING BAILED OUT

    10,452!

  5. Posted by Anonymous | May 19, 2010 at 6:09 PM

    It’s de-risking, it’s de-leveraging, It’s de-lovely!!

  6. Posted by Anonymous | May 19, 2010 at 7:13 PM

    financial the business?
    god you’re pathetic.

    -mom

  7. Posted by Anonymous | May 20, 2010 at 3:14 AM

    wow zach. wow.

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