A hedge fund boss and Warren Buffett disciple made a 40% gain during the brutal coronavirus sell-off after more than two years of betting against the stock market.
Kevin Smith, the founder and investment chief of Crescat Capital, revealed in an investor letter that the group’s macro fund posted a 40.5% gain between February 20 and March 20. Another key Crescat fund delivered a 34.3% gain over the same period, while the S&P 500 plunged by almost a third.
Smith has been bearish on equities for years, noting that “US large-cap stocks are the most overvalued in history” in a letter to investors in November 2017. He kept 50% of the fund’s assets in cash and parked money in gold and silver as stocks continued their record bull run.