What Does 2010's Best Performing Hedge Fund Manager Think Would've Happened Without Quantitative Easing (And The Sequel)?


Take it away, Don Brownstein: "Before Copernicus, there was the view that earth stood still and the sun moved around it. That was the view that told basically that the universe was static. That's turned out not to be true. I think people who believe that policy is somehow or other exogenous to the behavior of fixed-income markets are just deluded. The Copernican Revolution took place a long time ago in physics and it's about time that something like that took place in finance."


2010's Best Performing Hedge Fund Manager's Next Big Investment Idea Involves Becoming A Landlord

Don Browstein is a former philosophy professor, the founder of Structured Portfolio Management (named the best performing hedge fund in 2010, after returning 49.5 percent and 134.6 percent in 2009), a guy who supposedly once told a trader "The only way you can leave this firm is in a body bag" while brandishing a baseball bat, and the person tenants will have to answer to if next month's rent is one day late. Don Brownstein’s Structured Portfolio Management LLC plans to start a fund to buy and rent out homes. The firm, based in Stamford, Connecticut, may introduce the fund to investors within weeks, Brownstein said in a letter to clients dated June 12, a copy of which was obtained by Bloomberg News. He didn’t say how much capital has been raised or targeted. “There will be a significant transformation in the way in which single family homes are owned and occupied in the United States,” Brownstein said in the letter. The strategy is to acquire homes through distressed sales and rent them out profitably, perhaps to the former owner, then “sometime in the not distant future, sell the houses and reap a profit from a recovery in prices.” Brownstein Plans Funds To Buy, Rent Out Homes [Bloomberg Brief]