"We are pretty late in the game," says Alan Fournier, founder of Pennant Capital in an interview with James Grant.
Fournier tells Grant about a recent experience in which he made a presentation to a group of pension investors at the request of an investment bank.
Following his presentation, Fournier mentioned selling volatility to the host. The host replied, "I want you to know that everyone in this room is selling vol."
Fournier's presentation was to a group of large European pension funds.
Fournier described their strategy. "When they get a selloff, they sell more."
This is the Nifty-Fifty and LTCM on steroids. Some major pension plan is going to get carted out with a total loss at some point.
Mike "Mish" Shedlock