With the S&P 500 basically flat on the year now its worth noting that Barton Biggs, the former chief strategist at Morgan Stanley, who now runs the multi- billion dollar hedge fund, Traxis Partners, is very bullish. On Bloomberg TV the other day he stated he felt the market could be up 15% this year. His main bet is to play the large caps. He's in OEF, which is simply the ETF for the S&P 100 (way to take risks, Barton!) and QQQQ. He also owns some of the mega caps like XOM and AIG and all the big banks like JPM MS and GS.
I'm intrigued though by some of the sectors he's betting on. For instance, he's long CAL, LCC, and AMR, all airlines, all trading at 6x cash flows, which tells me the market thinks their cash flows won't last. If they do then these stocks have 20-50% upside in them. He's also making a big demographic bet on pharma and biotech with holdings like JNJ, WYE, and ABT. You can check out Barton Bigg's holdings here.
