Christine Hughes has a 23 year history of successfully managing investment funds and accounts for her clients; generating strong returns in bull markets and capital preservation in bear markets.
Ms. Hughes’s view on the stock market is unique as she studies it from the perspective of the bond market. Shaped by her extensive background in fixed income, she analyzes how equities relate to the yield curve.
In 1990 Ms. Hughes began her career at Cassels Blaikie (now Scotia Cassels) working one on one with ultra-high-net-worth clients. Spending 7 years managing these discretionary portfolios allowed her to pinpoint the exact needs of her clients. She firsthand understands that while appreciation of capital is important, preservation of capital is paramount.
In 1997 Ms. Hughes moved to Strategic Value where her expertise prevailed when she correctly anticipated the Asian financial crisis of 1997. It was her ability to look at things differently that allowed her to protect her clients’ capital during that time. In 1999 Ms. Hughes moved to AGF Management where she remained for the next 10 years. Ms. Hughes solidified her unique approach to investment management when she successfully steered AGF’s Canadian Balanced Fund to superior returns in a variety of market cycles.
In the early 2000’s Ms. Hughes’ macroeconomic study allowed her to avoid the “tech wreck”. She was concerned about the extreme valuations of technology stocks, but recognized distortions can last longer than one thinks. In January 2000 the bond market exhibited the sign of stress she was looking for when the yield curve inverted. It was then she reduced exposure to stocks and preserved value.
In 2009 Ms. Hughes was presented the Lipper Award in recognition for her funds’ superior performance in the Canadian equity balanced group for one, three and five year periods ending December 31, 2008. Ms. Hughes was one of the few managers who correctly anticipated the housing crisis. She identified the problem in 2003, but, like the ‘tech wreck’, recognized it could persist for some time. It was not until late 2007 when the bond market exhibited its stress and indicated that it was time to move allocations.
In 2012 Ms. Hughes founded OtterWood Capital Management where she serves as President and Chief Investment Strategist. She employs her proven capabilities in macroeconomic analysis and stock selection to formulate and steer OtterWood’s client portfolios. She is supported by a team of four investment professionals.
Today, Ms. Hughes has identified Japan as the next major risk to global financial markets. She believes Japan’s extreme leverage is unsustainable and is watching the bond market for indications of unravelling.
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