(Bloomberg) -- A hedge fund manager mentored by George Soros said recent volatility in equity markets in Australia and globally offer opportunities for stock pickers, the Australian newspaper reported.
In a world of high frequency algorithmic trading and index funds, stocks had become “commodities,” but there is opportunity for fundamental stock pickers, Scott Bessent, who started Key Square Group in 2016 with $2 billion from Soros' family office, said in an interview with the Australian at the Sohn Hearts & Minds Investment Conference in Melbourne on Friday.
As some of the leverage works its way out of the system, volatility, which has been “abnormally low” for a period of time, is likely to return to more normal levels, Bessent said. He has met with with officials from the Reserve Bank of Australia and local corporations in his visit to Australia. He listed Australia as one of five countries that could face difficulties as monetary policy tightens and the central bank balance sheet shrinks.
Bessent is more positive following U.S. mid-term elections that the U.S. and China could reach some sort of trade deal relatively soon. A trade pact and stimulus to the Chinese economy from tax cuts and investments could boost global growth, he said.
To contact the reporter on this story: Mariko Ishikawa in Sydney at mishikawa9@bloomberg.net
To contact the editors responsible for this story: Bruce Grant at bruceg@bloomberg.net, Jason Koutsoukis, John McCluskey
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