What Makes a Great Macro Fund Manager? Meet Scott Bessent, Trump's Treasury Secretary

Episode 117,   Oct 26, 2023, 05:00 AM

Today’s guest is the new US Treasury Secretary, serving under Donald Trump. The role gives him immense responsibility for managing US obligations and finances, including circa. $7 trillion of annual US federal spending, the $35+ trillion fiscal debt pile and continued inflationary pressures on both US businesses and consumers.

Prior to this he was a key player on the George Soros's team, who in 1992 helped the Quantum Fund make $1bn, shorting sterling ahead of the UK’s withdrawal from the ERM. As Soros’s CIO, he was also dubbed ‘The Man Who Broke the Bank of Japan’ by the Wall Street Journal after making approximately $3.5bn on the Abenomics trade from 2012-2015. 

Scott is widely acknowledged to be one of the world’s most highly respected macro hedge fund managers, and currently runs Key Square Capital Management. He has also taught financial history at Yale and is a prominent philanthropist.

In this episode, Scott explains the key ingredients in being a macro manager. He charts his journey, working with legendary investors such as Stan Druckenmiller and George Soros.

He opines on a range of key investment themes, including his thoughts on de-dollarisation, debt, commodities, the Ukraine rebuild, and AI. He also shares his analysis of the fast-evolving markets in both China and Japan.

Scott goes on to discuss risk, when and how he sizes positions, signposts that influence conviction, and dealing with information overload. A tour de force! Recorded in September 2023.

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