Why Is Whitney Tilson 'Highly Skeptical' Of The Trump Rally?

The Dow Jones Industrial Average has soared more than 8 percent since the November 8 presidential election, but not all fund managers are convinced the rally is here to stay.

Whitney Tilson, founder of the hedge fund Kase Capital, counts himself as a skeptic and thinks the creation of $1.6 trillion in share prices since the election will create a "a lot of volatility" next year.

Tilson said in an interview with Bloomberg that he supported the Democrat nominee Hillary Clinton and believes Trump showed "reckless behavior" and a disdain for "experts."

Regardless of his political views, Tilson has a duty to maximize returns for his hedge fund. He said the market is now ripe with "tons of shorts and no longs," and investors have "collective amnesia about the nature of the man who takes office in less than five weeks."

Tilson, No Pro-Trump Hedge Fund Billionaire

Ironically, Tilson's support for Clinton didn't seem to matter much to Sen. Elizabeth Warren who appears to have grouped all hedge fund managers as both Trump supporters and billionaires — neither of which characterizes Tilson.

In fact, Tilson counts himself as a financial and moral supporter of Warren.

In a now deleted Facebook post, Warren wrote that the "next four years are going to be a bonanza for the Whitney Tilsons of the world."

I've donated money to her, attended her events, and did everything in my power to stop Donald Trump," Tilson told the New York Times' Andrew Ross Sorkin following Warren's Facebook post. "In addition, I agree with her 100 percent that large swaths of the financial industry have run amok and prey on vulnerable Americans, and thus strong regulation, including a muscular Consumer Financial Protection Bureau, is sorely needed."

Tilson did confirm with Bloomberg he chatted with Warren, and it appears no harm was done. Tilson, along with his wife Susan, is now "glad we can go back to being enthusiastic supporters of [Warren] once again."

Image Credit: By thierry ehrmann from Saint Romain au Mont d'Or, France, Europe (Donald Trump, painted portrait _DDC9085) [CC BY 2.0], via Wikimedia Commons