Sag Harbor Advisors ( “SHA”) invests in a long/short portfolio of listed equities, closed end mutual funds and ETFs. SHA has the view that “buy-and-hold” equity strategies for long term investment and retirement are no longer viable. The global equity markets face a very long and systemic deleveraging process as the result of epic amounts of debt piled up at the sovereign, corporate and individual levels. This process could take through this decade to 2020 to complete in our view, resulting in a significant drag on equity prices. Moreover, the end of this decade will coincide with the retirement of the baby boom generation, a significant population bubble which largely embraced equity investing more than previous generations. This generation is a significant holder of US equities and will become a significant net liquidator of assets starting at the end of this decade, that could result in long term reductions in the price/earnings multiple of US equities.


In the words of Bill Gross : .