Final year’s bear market still left many buyers deep in the crimson, but hedge fund supervisor Neal Berger bucked the trend. Berger is founder and president of Eagle’s View Capital Management. The hedge fund’s Contrarian Macro Fund sent returns of extra than 160% in 2022, making use of futures contracts to small stocks and bonds whose valuations Berger observed as distorted by many years of uncomplicated funds. He joins other hedge fund administrators, these as Satori Fund’s Dan Niles , who efficiently grew their income in a turbulent year by taking quick positions in the marketplace. “The core fundamental thesis of the contrarian macro fund is that world wide central lender posture toward liquidity has modified 180 levels from a liquidity infusion posture to a liquidity extraction posture,” he advised CNBC’s ” Street Symptoms Asia ” on Thursday. Berger claimed the injection of $25 trillion of liquidity into the international fiscal technique around the earlier ten years has designed “huge” asset selling price inflation. And even though central banks about the entire world are now scrambling to unwind bloated stability sheets, the procedure is probable to acquire “a lot of years” and have an adverse effect on the industry, he included. “The enormous infusion of liquidity provided a tailwind for all asset rates for a dozen decades. The reversal of this liquidity infusion will now be a huge headwind in opposition to asset costs for the foreseeable long term,” he explained. ‘My bible is the price tag action’ That’s why the veteran fund manager is sticking to his tried-and-established playbook. The Contrarian Macro Fund presently holds brief positions in S & P 500 futures, U.S. 10-yr be aware futures, German bund futures and Japanese Federal government Bond futures, in accordance to notes Berger despatched to CNBC. “As a trader, my bible is the rate action. I’m a college student of cost motion and I am heading to be trading the current market in accordance with the longer-phrase tendencies,” he explained. He famous that the one-calendar year trend of all asset price ranges, this sort of as shares, bonds and crypto, is pointing downward. “I ought to stick to the value motion of the markets and it would be arrogant of me to forecast that this downtrend in asset selling prices will halt now,” he extra. Berger explained investors should be patient and look at for cost actions “more than a time period of weeks and months,” relatively than times to figure out if tendencies have definitely improved. And although several traders want to “catch the bottom,” Berger stated he is “Ok with missing the preliminary shift.” “If we are going to have a actual transfer to the upside, and we are likely to rally a pair of 100% like we did above the earlier ten years or so, it really is Alright to overlook the initial 10% to be certain that the trends have changed,” he extra.