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"Austrian" Investment Themes, Investments and Planning

Doug Dachille on CNBC – Perhaps the Best Investment Mind You Haven’t Heard Of

 

One of the best investment minds you have probably never heard of is Doug Dachille.

Mr. Dachille is currently the Chief Investment Officer for AIG, who bought his firm to bring him aboard back in June of 2015.

Read: 6 Things That Have Happened Since the Last Time the Fed Raised Rates

I first came across Doug during the run up to the financial crisis of 2008 when he was a frequent guest on Bloomberg TV.

While I always found his insights fascinating, I knew I had found a gem when the Bond King Bill Gross gave his seal of approval.

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Doug Dachille

Those who follow Mr. Gross know a couple of things. First he is most likely to be the smartest person in any room he is standing and second, he is not shy about reminding anyone in the room of that fact.

Back in 2008 Dachille and Gross where part of a panel discussion, and while I don’t recall the exact conversation, Mr, Dachille described a particular issue related to the (then) current bond market and a potential trade or strategy to deal with said outlook.  Mr. Gross’s response was (paraphrasing): Wow, I haven’t thought of that and kind of chuckled as he mentioned that he would have to take a look at that one when he got back to the office.

For the record I have no idea what type of relationship the two may have, but I know in that moment, Mr. Dachille had the Bond Kings full respect and attention.

Tuesday on CNBC Mr. Dachille appeared on CNBC’s squawk box and as usual the insights are wroth the watch:

Video link:  Doug Dachille on CNBC

 

In summary Mr. Dachille talks about reducing hedge fund exposure due to diminished return expectations. As he says “in finance all good things must come to an end, because it attracts money and more money coming in dilutes the opportunity.”

Read: Is the Gold Trade Back?

He goes on to state that in the late 90’s the hedge fund industry was roughly $300 billion, whereas today the industry is $3 trillion.

Mr. Dachille also raises the prospect of properly pricing insurance in an environment in which returns are likely to be significantly less than expected.

There are a lot of prognasticators out there who as the saying goes seem to know more about everything than I do about one thing. Mr. Dachille most assurdley does not fall into that category and in the vein of the old E.F. Hutton commericals…when you hear him talk, it is best to shut up and listen.

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DISCLAIMER: Nothing in this article should be construed as a personal recommendation or advice. Nor should anything in this article be construed as an offer, or a solicitation of an offer, to sell or buy any investment security. Barnhart Investment Advisory Principal and clients may hold positions in securities mentioned above, and subject to change without notice. Consult your investment professional before investing.

 

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