Barton Biggs
Encyclopedia
Barton M. Biggs is a money manager running Traxis Partners, a multi-billion dollar hedge fund
based in New York City
. He formerly held the title of "chief global strategist" for Morgan Stanley
and was with that firm for 30 years.
Biggs has appeared numerous times on CNBC
and was a member of the Barron's Roundtable.
His influence could be seen when, in 1996, some traders were surprised that India funds suddenly became popular. "Barton Biggs is there, having a look around," one trader said. "Do you need to know more?"
Biggs was named by Institutional Investor magazine to its "All-America Research Team" 10 times, and he was voted the top global strategist and first in global asset allocation from 1996 to 2000 by the magazine's "Investor Global Research Team" poll.
"He's the ultimate big-picture man," according to a piece at the Web site of Smart Money
magazine. "As the global investment strategist for Morgan Stanley, Barton Biggs is without question the premier prognosticator on the international scene and a mover of markets from Argentina to Hong Kong. It wouldn't be a stretch to say Biggs wrote the book on emerging-market investing."
, Biggs graduated from Yale University
in 1955 (where he studied with Robert Penn Warren
, the poet and novelist), and where he was a member of the Elihu society
. Biggs later taught English at the Landon School
, a prep school in Bethesda, Maryland
, and played semiprofessional soccer and tried his hand at short-story writing. He joined E.F. Hutton in 1961, with a starting salary of $7,200 a year.
Biggs joined Morgan Stanley
as a managing director and general partner in 1973. The firm's first research director, he established Morgan Stanley Investment Management in 1975.
He left Morgan Stanley in part, he said, because he found his job had evolved too much into managing people rather than formulating strategy.
Biggs likes the intellectual challenge of running a fund, said Madhav Dhar, Biggs' partner at Traxis, a global macro
fund. "He lives and breathes this stuff," according to Dhar. "He always has, ever since I've known him."
He has four children, Wende Biggs, Gretchen Biggs, Barton Biggs and Ian Biggs residing in Massachusetts, Connecticut, Virginia and London respectively.
fund business as well as some of what Biggs calls "the very brilliant and often eccentric and obsessive people in this business."
In the book, he writes about some of the quirks of hedge fund culture: Golf, for instance, is very popular. Perhaps that's because the game, like investing, is minutely measurable, to the last stroke. "Or maybe it's because hedge-fund guys are so competitive and have such massive egos," he writes.
Biggs is also author of the 2008 book Wealth, War and Wisdom (358 pages; Wiley; January 2008; ISBN 978-0-470-22307-9). In this book, Biggs has a gloomy outlook for the economic future, and suggests that investors take survivalist measures, such as looking into "polar cities" as safe refuges for future survivors of global warming
. In the book, Biggs recommends that his readers should “assume the possibility of a breakdown of the civilized infrastructure.” He goes so far as to recommend planning adaptation strategies now and setting up survival retreats
: “Your safe haven must be self-sufficient and capable of growing some kind of food,” Mr. Biggs writes. “It should be well-stocked with seed, fertilizer, canned food, wine, medicine, clothes, etc. Think Swiss Family Robinson. Even in America and Europe there could be moments of riot and rebellion when law and order temporarily completely breaks down.”
Biggs has also written a novel about the stock market, A Hedge-Fund Tale, Wiley (December 28, 2010), ISBN 978-0470604540
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. He formerly held the title of "chief global strategist" for Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
and was with that firm for 30 years.
Biggs has appeared numerous times on CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
and was a member of the Barron's Roundtable.
His influence could be seen when, in 1996, some traders were surprised that India funds suddenly became popular. "Barton Biggs is there, having a look around," one trader said. "Do you need to know more?"
Biggs was named by Institutional Investor magazine to its "All-America Research Team" 10 times, and he was voted the top global strategist and first in global asset allocation from 1996 to 2000 by the magazine's "Investor Global Research Team" poll.
"He's the ultimate big-picture man," according to a piece at the Web site of Smart Money
Smart Money
Smart Money is a 1931 film starring Edward G. Robinson and James Cagney, the only time Robinson and Cagney made a movie together, despite being the two leading gangster actors at Warner Brothers studios all through the 1930s...
magazine. "As the global investment strategist for Morgan Stanley, Barton Biggs is without question the premier prognosticator on the international scene and a mover of markets from Argentina to Hong Kong. It wouldn't be a stretch to say Biggs wrote the book on emerging-market investing."
Correct Calls
- He called the technology bubble and recession that followed a full year before it burst. (International Herald Tribune, 10/3/1998)
Mistakes
- Biggs badly missed the true nature of the economy's problems leading to the 2008-9 recession:
Barton Biggs's Traxis Fund LP tumbled 10 percent in the first half of the year, hurt by bets that U.S. shares would appreciate. As recently as May, Biggs, 75, said the U.S. economy will grow in the second half of 2008, the Standard & Poor's 500 Index may climb to a record and commodity prices will retreat as much as 30 percent.
- He said he was bullish on Mexico shortly before the pesoPesoThe word peso was the name of a coin that originated in Spain and became of immense importance internationally...
crashed in 1994.
Life
The son of a chief investment officer of Bank of New YorkBank of New York
The Bank of New York was a global financial services company established in 1784 by the American Founding Father Alexander Hamilton. It existed until its merger with the Mellon Financial Corporation on July 2, 2007...
, Biggs graduated from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
in 1955 (where he studied with Robert Penn Warren
Robert Penn Warren
Robert Penn Warren was an American poet, novelist, and literary critic and was one of the founders of New Criticism. He was also a charter member of the Fellowship of Southern Writers. He founded the influential literary journal The Southern Review with Cleanth Brooks in 1935...
, the poet and novelist), and where he was a member of the Elihu society
Elihu (secret society)
Elihu, founded in 1903, is the sixth oldest secret society at Yale University, New Haven, CT. While similar to Skull and Bones, Scroll and Key and Wolf's Head societies in charter and function, Elihu favors privacy over overt secrecy...
. Biggs later taught English at the Landon School
Landon School
The Landon School is a private, nonsectarian, college preparatory school for boys in grades 3-12, with an enrollment of approximately 675 students. The school sits on in Bethesda, Maryland, just outside of Washington, D.C.-Background:...
, a prep school in Bethesda, Maryland
Bethesda, Maryland
Bethesda is a census designated place in southern Montgomery County, Maryland, United States, just northwest of Washington, D.C. It takes its name from a local church, the Bethesda Meeting House , which in turn took its name from Jerusalem's Pool of Bethesda...
, and played semiprofessional soccer and tried his hand at short-story writing. He joined E.F. Hutton in 1961, with a starting salary of $7,200 a year.
Biggs joined Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
as a managing director and general partner in 1973. The firm's first research director, he established Morgan Stanley Investment Management in 1975.
He left Morgan Stanley in part, he said, because he found his job had evolved too much into managing people rather than formulating strategy.
Biggs likes the intellectual challenge of running a fund, said Madhav Dhar, Biggs' partner at Traxis, a global macro
Global macro
Global Macro is defined as the strategy of investing, on a large scale, around the world using economic theory to justify the decision making process...
fund. "He lives and breathes this stuff," according to Dhar. "He always has, ever since I've known him."
He has four children, Wende Biggs, Gretchen Biggs, Barton Biggs and Ian Biggs residing in Massachusetts, Connecticut, Virginia and London respectively.
Author
Biggs is the author of Hedgehogging, (308 pages; Wiley; 2006; ISBN 0-471-77191-0). The book came from a journal kept by the former creative writing major at Yale and chronicles some of the indignities of being in the hedgefund business as well as some of what Biggs calls "the very brilliant and often eccentric and obsessive people in this business."
In the book, he writes about some of the quirks of hedge fund culture: Golf, for instance, is very popular. Perhaps that's because the game, like investing, is minutely measurable, to the last stroke. "Or maybe it's because hedge-fund guys are so competitive and have such massive egos," he writes.
Biggs is also author of the 2008 book Wealth, War and Wisdom (358 pages; Wiley; January 2008; ISBN 978-0-470-22307-9). In this book, Biggs has a gloomy outlook for the economic future, and suggests that investors take survivalist measures, such as looking into "polar cities" as safe refuges for future survivors of global warming
Global warming
Global warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
. In the book, Biggs recommends that his readers should “assume the possibility of a breakdown of the civilized infrastructure.” He goes so far as to recommend planning adaptation strategies now and setting up survival retreats
Retreat (survivalism)
A retreat is a place of refuge for those in the survivalist subculture or movement. Retreats are also sometimes called Bug-Out Locations...
: “Your safe haven must be self-sufficient and capable of growing some kind of food,” Mr. Biggs writes. “It should be well-stocked with seed, fertilizer, canned food, wine, medicine, clothes, etc. Think Swiss Family Robinson. Even in America and Europe there could be moments of riot and rebellion when law and order temporarily completely breaks down.”
Biggs has also written a novel about the stock market, A Hedge-Fund Tale, Wiley (December 28, 2010), ISBN 978-0470604540
External links
- Collected news coverage at BloombergBloomberg L.P.Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
- Collected news coverage at San Francisco ChronicleSan Francisco Chroniclethumb|right|upright|The Chronicle Building following the [[1906 San Francisco earthquake|1906 earthquake]] and fireThe San Francisco Chronicle is a newspaper serving primarily the San Francisco Bay Area of the U.S. state of California, but distributed throughout Northern and Central California,...
- "Barton Biggs’s Hedge-Fund Heroes Pile Up Zeroes in Gilded Fable," (Review of Biggs' novel A Hedge Fund Tale), Bloomberg, January 17, 2011