Manu Daftary, manager of the $1 billion Quaker Strategic Growth Fund, told the Boston Herald he sees a 75% chance for a recession over the next six to 12 months.
Exorbitant fuel prices, rising interest rates, a steep slowdown in the housing market and recent earnings warnings from consumer-oriented companies are some of Daftary's key concerns. But he also notes that the economy has been humming along at a higher rate than normal for a number of years.
Fearing that a recession "is long overdue" he's moved nearly 50% of his portfolio into cash.
Anyone questioning this fund manager might want to look at his track record. A thousand dollars invested in his fund since its launch in late 1996 would have grown to $5,000. By comparison even Warren Buffet's fund would have returned $2,750 in that timeframe, while the average equity mutual fund would have grown to just under $2,000.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.