In the past, we've gotten a glimpse at Pellegrini's portfolio and have posted up a previous investor letter. His annual letter, however, is chalk full of much more in-depth macro insight. PSQR's outlook for 2010 is entitled 'The Rubber Meets the Road' and they have expressed the following investment views:
- Short US fixed income
- Short US equities
- Short US dollar
- Long commodities
These are by no means new revolutionary investment theses. After all, we've covered how many hedge funds have had similar trades on. PSQR though believes that 2010 will present structural problems and expect cyclical indicators to peak in the first quarter of this year and then decelerate after that. Pellegrini notably ends his letter with a gloomy outlook as he writes, "Both the US and the global economy continue to suffer distortions from a refusal to come to grips with this reality, whether through lack of understanding or because of political calculation, or some combination of the two. Eventually, there must be a reckoning. In our judgment, that day may be much sooner than the markets suggest."