Michael Steinhardt Is Shorting 2-Year Treasuries (TBT)

Benzinga.com recently had the pleasure of interviewing noted philanthropist and former hedge fund manager Michael Steinhardt. The legendary investor founded macro based hedge fund Steinhardt, Fine, Berkowitz & Co. with two partners in 1967. In 1979 after his partners departed the firm, the fund was renamed Steinhardt Partners. His returns were phenomenal. He averaged a performance track record of 24% compound annual gain, which more than doubled the return of the S&P over a 28-year period. Steinhardt was known for trading a wide array of different financial instruments, including stocks, bonds, options and currencies in order to take advantage of macro shifts. In 1995, he closed his hedge fund in order to pursue other activities, including philanthropy. He has served on the board of institutions such as New York University, the University of Pennsylvania, and Brandeis University. He is also Chairman of the Board at the Steinhardt Foundation for Jewish Life. Currently, Mr. Steinhardt is the chairman of WisdomTree Investments, which offers dividend and earnings-based index funds. He is also an author, having published an autobiography entitled "No Bull: My Life In And Out Of The Markets." Although Steinhardt made much of his money on short-term market moves, he always paid strict attention to the fundamentals. With such a successful background, his take on the current market conditions and what may prove profitable going forward, certainly should spark investors' interest. In his exclusive interview with Benzinga.com, Steinhardt said that he is currently short the two-year Treasury note. Right now the two-year is yielding around 0.46%, which is exceptionally low. This trade will be profitable if yields move higher over time, which seems likely a likely outcome if the economy begins to stabilize or a modicum of inflation sets in. Investors looking for an easy way to piggyback on Mr. Steinhardt's idea should consider the ProShares UltraShort 20+ Year Treasury Bond ETF

. Although this security focuses on the long end of the Treasury curve, macro developments that could potentially drive up yields on the two-year will likely have a similar effect on the longer end of the curve. Benzinga.com will be releasing our interview with Michael Steinhardt in the coming weeks both as a podcast and on the site. Be sure to check back in order to get a peek inside the mind of this legendary investor and Wall Street icon. Learn how to find the best

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