Michael Hintze Biogrpahy
Sir Michael Hintze GCSG AM born on July 27th 1953, is a british -Australian businessman, philanthropist based in united kingdom, he is also the patron of Conservative Party.
In 2016 he was ranked Australia’s 37th wealthiest person with a net worth of A$1.32 billion.
He was born in China’s city of Harbin after his grandparents fled fro russia. When Mao zedong took power his parents relcated to Australia.
Michael Hintze Age
Hintze is 65 years old as of 2018.
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Michael Hintze Wife
Michael Hintze Education
He was raised by his secretary mother in Sydney and educated at the local Christian brothers’ school. He graduated from the University of Sydney with a BSc in physics in 1975 and BE degree in engineering in 1977.
He holds an MSC degree in acoustics from the University of South Wales, an MBA degree from Harvard Business School, and an honorary Doctorate of business from the University of New South Wales.
Upon graduating he joined the Australian army for three years, rising to the rank of captain. he worked as an electrical engineer for civil and civic Pty Ltd in Australia.
Michael Hintze Career
Moving to New York to train in financial services, he worked for Salomon Brothers as a fixed income trader and at Credit Suisse First Boston. Relocating to London with them, he then joined Goldman Sachs, where his ultimate position was Co-head of the UK Shares Product. He left the firm in 1995.
In 1999 he launched his own asset management firm, CQS, and has been cited in the press as one of the highest paid people in the City of London. Hintze was ranked No. 5 on Financial News’ FN100 Most Influential list in the hedge fund category. CQS Asset Management, which has been described as “one of the world’s leading credit market players” has assets under management reported at $11 billion. The CQS Directional Opportunities Fund, which is managed by Hintze, was ranked #3 on Bloomberg’s list of the 100 top-performing large hedge funds for 2012.
In 2013, Hintze’s CQS received awards for the “Best Hedge Fund Manager Overall,” “Best Hedge Fund Manager in Credit,” and “Best Multi-Hedge Fund Manager” at the Financial News Awards for Excellence in Institutional Hedge Fund Management. CQS was reported to be on the opposite side of the infamous JPMorgan trade by Bruno Iksil, nicknamed the London Whale, in which JPMorgan lost an estimated $2 billion. The total gains by CQS are unknown.
Hintze is credited by veteran economic commentator and journalist Alex Brummer with warning about the state of UK banking, the outlook for the UK housing market, and the scale of toxic-debt on the balance sheets of UK banks.
Due to his expertise in global financial markets, Hintze has been tapped to sit on a number of boards and government panels. He was appointed by the Australian Treasury to sit on a four-person International Advisory Panel to support the Financial Systems Inquiry (FSI), which is focused on issues impacting Australia’s economy such as technological change, Australia’s global competitiveness, and offshore regulatory frameworks.
Hintze was appointed by Pope Francis to the board of the Vatican Bank (officially known as the Institute for the Works of Religion). According to ValueWalk, “The addition of Hintze is viewed as a significant positive for the Vatican” due to the fact that he is a “no-nonsense manager with deep insight into a broad range of international finance matters.”
In the UK, Hintze was also appointed to serve on the Fair and Effective Markets Review, a joint review by the Treasury, the Bank of England and the Financial Conduct Authority (FCA) focused on raising standards of conduct in the financial system. He also sits on the Finance & Audit Committee of the Duchy of Cornwall.
Michael Hintze Net Worth
He has an estimated net worth of A$ 2.56 billion as of 2018.
Michael Hintze HouseMichael Hintze House
Michael Hintze Linkedin
Click here to connect with Hintze on Linkedin.
Michael Hintze Cqs And Charitable Foundation
Michael Hintze is the founder and CEO of CQS, a global multi-strategy asset management firm, and the founder of the Hintze Family Charitable Foundation.
Michael Hintze Phylanthropy
With his better half Dorothy, Hintze set up the Hintze Family Beneficent Establishment, which has given noteworthy and wide-running generous help to more than 200 causes, concentrating for the most part on wellbeing, training, outfitted administrations, culture, and expressions of the human experience.
In the region of culture and expressions of the human experience, outstanding gifts incorporate empowering the reclamation of Michelangelo’s frescoes in the Pauline Sanctuary at the Vatican and in 2014 giving £5 million to the Normal History Historical center, London.
The gift to the Regular History Historical center is the greatest single gift gotten by the gallery in 133 years (as such, since 1881 when the Exhibition hall opened to people in general out of the blue).
The blessing will be utilized to a limited extent to subsidize projects to examine issues that undermine Earth’s biodiversity, for example, the upkeep of fragile biological systems and the effects of natural contamination, just as the fight against sicknesses, for example, malaria.
The exhibition hall’s Focal Corridor has since been renamed ‘Hintze Lobby’.
Ventures in culture and expressions of the human experience have likewise empowered the restoration of the V&A’s Model Displays, named the Dorothy and Michael Hintze Displays, and have included sponsorship of a famous presentation of Raphael’s Woven artworks from the Sistine House of prayer at the V&A, and a £2 million gift to the National Exhibition.
The gift to the National Exhibition has been utilized to a limited extent to support renovation, including the establishment of new innovation to lessen the display’s running expenses and carbon impression. Backing has additionally been given to the English Exhibition hall and the National Representation Display.
The Hintze Family Altruistic Establishment is likewise recorded as an Actual existence Sponsor Benefactor to the National Theater. Through CQS and the Hintze Family Beneficent Establishment, he gave subsidizing to make a ‘theater in the round’ at the Old Vic in London, among other critical help.
He additionally went to the guide of Wandsworth Exhibition hall, which was confronting unavoidable conclusion by offering a £2 million salvage bundle.
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In the zone of wellbeing, he co-led Clapham’s Trinity Hospice battle for another in-persistent focus which has now been finished. Hintze gave a $1 million present to the College of Sydney’s Charles Perkins Center, which centers around transforming medicinal examination into suitable medications. He has additionally offered help to the Evelina Kids’ Emergency clinic.
His help for the equipped administrations has included gifts to The Imperial Naval force and Illustrious Marines Philanthropy. Among different activities, this has included giving financing to help serving the workforce and their families. He has likewise offered help to the Dark Stork Philanthropy to help develop a standout amongst the most exceptional communities for a restoration of the harmed military workforce on the planet.
In instruction, among significant gifts, he has built up the seat of Global Security at the College of Sydney and upheld the College of Oxford Place for Astrophysical Overviews, where the Yearly Hintze Address has been set up.
Subsidizing was accommodated the development of a private wing at St. John’s School at the College of Sydney, which was named the Hintze Building. Hintze has additionally given $1 million to the College of New South Ribs (UNSW) for another address theater.
The gift was made to pay tribute to his dad, Michael Hintze senior, who is additionally a UNSW former student. Blessings have additionally been made to Harvard College ($10m) and Princeton College, where a Residency for Expressions of the human experience has been set up in his significant other’s original last name (Dorothy Krauklis).
The Watchman revealed that Hintze is a contributor to the A dangerous atmospheric deviation Approach Establishment.
Magnanimous Positions and Acknowledgments
Hintze right now fills in as a trustee of the National Picture Exhibition, the Organization of Financial Issues, the College of Sydney Trust, as an Individual from the Harvard Business college Leading body of Dignitary’s Counsels’, and as Senior Bad habit Benefactor of the Imperial Naval force and Illustrious Marines Philanthropy.
He was once in the past director of the Ruler’s Establishment for Building People group.
Hintze was once in the past a trustee of the National Exhibition, where he helped with verifying Titian’s Diana and Actaeon for the country. He was at first selected to the National Display’s Leading group of Trustees by then Work Gathering Executive Gordon Dark-colored in 2008. He was later reappointed by Moderate Gathering PM David Cameron.
In acknowledgment of their beneficent commitments in the help of expressions of the human experience, Michael Hintze and his significant other Dorothy got the Sovereign of Ribs Decoration for Expressions Charity in 2009.
Hintze was welcome to the Chancellor’s Court of Promoters for his help of the College of Oxford.
He was named to the 2017 Debrett’s 500 Rundown, in acknowledgment of his extensive generous commitments in the UK. He was additionally named to the Night Standard’s “Advancement 1000” rundown of “London’s most compelling individuals,” referring to his magnanimous commitments and business achievement.
Traditionalist Gathering gifts
In 2006, at the season of the Money for Peerages charges concerning the Work Gathering, Hintze willfully uncovered he was one of the beforehand unknown supporters who hosted influenced credits to the Traditionalist To get together. In 2011 his known advances and gifts to the gathering totaled around £4 million.
In the five months to September 2011, he gave £31,000, enough to give him participation of the Preservationist Treasurers’ Gathering, the second most noteworthy rung on the gathering’s benefactor’s stepping stool, which permits its individuals to access to senior Traditionalist figures through a progression of snacks, gatherings, and battle dispatches.
At the point when the Traditionalist Party were in restriction, Hintze uncovered that he had given to George Osborne, David Willetts, Liam Fox, Theresa May, David Davis, Adam Holloway, and Boris Johnson. Furthermore, CQS made non-money gifts to William Hague, Liam Fox, and George Osborne.
In May 2008, David Cameron announced a gift from Hintze to the Preservationist Gathering that was utilized to pay for beverages gatherings for Tory MPs and their partners. In Walk 2008, Hintze paid for a personal jet to ship Cameron and Osborne from Newcastle to Biggin Slope after the Traditionalist Party meeting.
In October 2011, it was uncovered that Adam Werritty, a dear companion and business partner of then Secretary of State for Safeguard Liam Fox, was given a free work area by Hintze at CQS’s London base as a component of his £29,000 gift to Fox’s philanthropy The Atlantic Extension. Hintze additionally provided a personal jet for Fox and Werritty to fly from the Assembled States to London in May 2011.
These exposures prompted the abdication of Liam Fox (who was then Secretary of State for Safeguard) and the expulsion of Hintze’s then-philanthropy consultant, Oliver Hylton.
Michael Hintze News And Interview
Billionaire hedge fund manager explains the role of imagination in successful investing, and how to position for a rise in interest rates.
There are many reasons to heed Sir Michael Hintze; the fact that he’s a billionaire is only one.
At 64, Hintze has lived several lives. He was an officer in the Australian Army and an electrical engineer, and now manages CQS, a $15.3bn London-based hedge fund firm that he founded in 1999. The firm has performed admirably through multiple market dust-ups, and famously weathered the 2008 market wipe-out with a 72.8% return in its asset-backed securities fund.
The ABS fund has returned more than 18%, annualised, since its 2006 inception. Other big CQS funds include Directional Opportunities, which has returned an annualized 15.6% since its 2005 inception, and Diversified, up 7.63% on an annualised basis since its 2007 launch.
Hintze and his colleagues study economic interactions and imagine detailed “what-if” scenarios, which has helped them forecast turning points in various markets.
In 2015 they anticipated correctly, if early, that Saudi Arabia would have trouble cutting oil production, which meant crude prices would fall. CQS shorted oil in its Directional Opportunities fund, and avoided energy-related investments. While the fund lost 8% that year, its short oil bet, and a subsequent wager on an energy rebound, helped produce a 30% return in 2016.
The following conversation between Hintze and FN’s sister publication Barron’s is expansive, encompassing numerous digressions and illuminating stories. In a recent discussion, he explained the role of imagination in successful investing, and how to position for a coming rise in interest rates.
Barron’s: What are the biggest risks to the capital markets now?
Hintze: Interest rates and inflation are the elephants in the room. Rates could rise because quantitative easing [asset-buying by central banks] is being tapered, or because inflation returns. The US labour market is getting pretty tight. Commodity prices are going up, in part because of oil. Fiscal stimulus in the US is increasing, with the tax cuts and potential infrastructure projects. Global stimulus is also apparent; growth is accelerating. China, with its belt and road initiative [an international infrastructure project], is helpful, and global trade is still there. I’m constructive on global growth. It is good for equity markets, and not bad for credit markets. Inflation makes it easier to pay off debt, so that’s really constructive for global credit.
What investment opportunities do you see in credit?
One thing we’ve been able to do is steer away from rate risk. A classic way to do that is to invest in asset-backed stuff. It’s a credit-picker’s market. US residential mortgage-backed securities are a big market; European collateralised loan obligations aren’t a bad place to sit. Double-B-rated CLOs issued in Europe are yielding 485 basis points more than double-B-rated high-yield debt. [A basis point is one hundredth of a percentage point.] Loans, especially floating-rate loans, are a good place to be. But choose your place carefully, because we are in a covenant-light world and, frankly, in somewhat of an asset-light world, too. A lot of companies are using intellectual capital, rather than financial capital, to execute their businesses.
Short-duration structured credit isn’t a bad place to invest, either, because you can analyse it. The spread [the yield over Libor, or the London Interbank Offered Rate] is your driver. Convertible bonds tend to do well in this environment, and so do high-coupon bonds, because they have a shorter duration. If rates go up, you can then reinvest the coupon at a higher rate, so the effective internal rate of return of your overall investment is higher.
You have warned about coming potholes, not black holes. Can you elaborate, please?
There will be a reassessment of the growth path, rather than a reassessment of whether we’re growing at all. There is a lot of disruption out there, some of which comes from technology. There are rolling pockets of stress, distress, dislocation, in retail, energy, and financials — not so much US but European financials. That gives us dispersion [of prices] and opportunity.
What is the best way to assess geopolitical risk?
Knowledge has become much more commoditised because of greater transparency and more training. To get a real alpha edge, you have to go from knowledge to insight. To do that, you need imagination; you get paid for imagination. And to develop imagination, you need to have a broad context, and a broader understanding across the asset classes. You need to do deep analysis.
If I were sitting at the State Department or the Foreign Office or the Department of Defense, I’d have a different lens on it [geopolitical risk]. What I’m trying to work out is: Can we make money from it? Or lose money from it? Is there something we can sell short to make money from this bad situation? We have to be systematic in thinking about it, and try to understand what the transition mechanism would be. Often the transmission mechanism goes through the oil market, but it also goes through global trade.
Give us an example.
There was a major outbreak of the SARS virus in Asia in 2003. It had a big impact on the investment world. Hong Kong sat at the nexus of SARS. Initially, 34 people died. Those deaths didn’t affect the financial markets because they occurred in rural China. But the fear that a person in Hong Kong took a flight to Toronto, had a bit of coughing on the plane, and then infected someone in Toronto mattered hugely. People feared a global pandemic. All flights between Canada and Hong Kong were suspended, and there was an immediate effect on the airline and hospitality sectors, which resulted in an immediate $40bn hit to the global economy. An outbreak of the Ebola virus in Africa in the past decade killed many more people. But it didn’t for the markets. It didn’t affect global trade.
When you get such stress points, you can often trade them. As the fears go up and down, you’ll be able to reassess the probabilities, and whether you’re getting the right value for your money. Looking back through my family history, to the 1700s, the family has been affected one way or another by geopolitics, whether in Bolshevik Russia or China or Indonesia, or wherever.
Does your family history influence how you view the world through an investing lens?
No, it just gives me a sensitivity. It makes me more situationally aware. I can’t say for one second that I can remember what happened back in 1917-1918, when my grandfather fought on the white Russian side of the revolution. But knowing that he had a lot of assets expropriated as an investor in Dutch New Guinea — I guess that changes my view a little bit of Indonesia. But we are happy to invest there now; I’m not an ideologue, just thoughtful.
It’s interesting how constructive you are, given that many of your compatriots see a recession in the next 12 to 24 months. Why is that?
I can see why they’re cautious. This isn’t rose-coloured glasses; I’m not blind to the fact that we could have a policy error, a trade war, all sorts of things. A policy error that smashes global trade would be a problem, but we don’t have one single point of failure anymore. We’ve got China wanting to trade; if it doesn’t trade with the US, it will trade elsewhere. If the US doesn’t want to trade, it’s perfectly sensible—the US is an incredibly robust economy and geo-economic system. It can live with itself, as well. It won’t be a happy day, but it won’t kill us. Regarding discussions about renegotiating Nafta (the North American Free Trade Agreement) if you are in certain industries in certain parts of the US, there are winners and losers. Tariffs on steel, depending on how they come out, won’t derail the world. They could derail individual industries.
The year 2016 was a tough one for hedge funds, although performance improved last year. How have client conversations changed? Are clients asking for something different, and are you pitching something different?
It’s different every day, and yet the same every day. What really matters is performance. If you have performance, a lot of sins get covered. We’re seeing some capital moving from active investment to passive, to the systematic stuff. But what is also changing is the cost of doing business. The banks had that in spades [it became more expensive to transact business] after 2008-09. But to be open with you, we are now seeing that in the asset-management industry. In the European context, we’ve seen Mifid II [Markets in Financial Instruments Directive, a new law that governs, among other things, how investment research is paid for and how trades are documented]. The regulatory cost is a burden, which means we are seeing industry consolidation.
Alignment of interest between client and fund is a big deal. The fees are aligned [with performance] in some ways. Some long-only managers have benchmark-related performance fees on top of a management fee.
There is relatively little diversity in the hedge fund industry. How is CQS doing with regard to diversity, and is this something managers need to care about more?
We have always tried to be thoughtful about diversity and embrace it, and there is always more to do. But you can’t stop there. Inclusion is critical. Our new head of human resources, Gillian Van Maaren, joined us four months ago and part of her mandate is to enhance processes around diversity.
We’re interested in hiring smart people, but what we really are seeking is called cognitive diversity. That’s diversity of thinking. We have people from all around the world; that is a big deal for us. I’ve come from Australia, and now I’m here. One good source of cognitive diversity is gender diversity. To that end, we’ve got women in the front office, but a third of our overall workforce is women. We have to think creatively about how to make sure that, when they go off to have children, they can come back to work effectively in our environment. We make sure we have some flexibility in work arrangements. The real challenge is when somebody’s work is driven by the market, and by market timing. It makes it harder. But we strive to make things more effective.
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