April 29 (Bloomberg) -- Elliott Management Corp., the $24.1 billion hedge-fund firm run by Paul Singer, said recession is a possibility in the developed world, while the deflation that keeps central bankers awake at night is less likely than an asteroid hitting the earth.
“The fact remains that important structural reforms and pro-growth policies have been absent in the Developed World,” Elliott wrote in a letter to investors, a copy of which was obtained by Bloomberg News. “Their economies are running on monetary extremism, which so far has not delivered the promised growth or jobs. We are not predicting a recession. We are just keeping it in the possibility mix.”
The firm, whose main fund gained 2.2 percent in the first quarter, criticized President Obama’s Affordable Health Care Act and Federal Reserve Chair Janet Yellen, in the letter.
The firm did not immediately respond to a request for comment.