Neil Chriss, founder of $1.1 billion hedge fund Hutchin Hill Capital LP, said the U.S. Federal Reserve’s program to buy mortgage securities is “maximally stimulative.”
“This is a program that in size is as big as the first quantitative easing,” Chriss said at the Bloomberg Markets 50 Summit in New York today.
The Fed said today it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.
Chriss said he was “bearish” on the economy and “cautious” in positioning his hedge fund. Chriss, a former portfolio manager at SAC Capital Advisors LP, started the firm with $300 million from Renaissance Technologies Corp. founder James Simons.
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