Alberto Gallo, portfolio manager of the firm’s macro credit-focused Algebris Macro Credit fund, believes current dislocations offer value for investors taking a long-term view.
“Even though the virus spread may lead to a recession, price discounts across most asset classes provide a large cushion for negative scenarios,” Gallo said, adding markets “are now ripe with opportunities.”
Algebris has remained cautious on macro developments and markets since the start of the year, warning of market complacency and high valuations while cutting risk and raising liquidity across all its strategies.
“Across all our Algebris funds including Macro Credit in particular, we have accumulated ample liquidity. Over the coming months, we will gradually deploy this dry powder and lock-in selective opportunities in high quality assets, which may benefit from future fiscal stimulus and persistent low interest rates,” Gallo explained in a recent market commentary.
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