market folly

Noted trader and author of The Gartman Letter, Dennis Gartman is now set to do something he has dreamed about for some time: start a hedge fund. Gartman started his hedge hedge fund, The River Crescent Fund on August 17th and is trying to raise $200 million over an elongated time period. While Gartman would not name names, he has said previously that some "well known hedge fund managers" have already invested.

His fund will essentially run based off the recommendations he has made daily in his Gartman Letter. It is currently long soybeans and short wheat in an agriculture trade. In currencies, he is short the euro but long gold. This is Gartman's forte as he is always hedging his bets and playing two sides of a trade. His hedge fund will trade equities, crude oil, metals, agricultural commodities and more. So, it seems as if he'll take a global macro approach to running the fund due to the multitude of asset classes he'll be trading. Back in June, we saw that Gartman sees both inflation and deflation and so it will be interesting to see how quickly he moves in and out of positions as he is not a daytrader and typically holds positions for numerous days or even weeks. Additionally, back in February he said he saw gold becoming the world's second reserve currency. His current long gold position certainly reflects this view.

While this most likely means we'll be seeing much less of Dennis Gartman in the media, we'll still keep an eye on his movements regardless. After all, he is 'old school' in his ways and that's why we follow him. He's given great advice in the past, telling people to watch the base metals for signs of economic recovery. Additionally, he's laid out his rules of trading here and we highly recommend reading them. You can certainly bet that he's implemented those as founding principles of his new hedge fund.