Sabretooth Capital Management, a New York multistrategy firm founded in March 2009 with funding from Julian Robertson, produced big gains this year, thanks to a bet against rising inflation. Following the Federal Reserve’s second round of quantitative easing last year, Sabretooth principals Erez Kalir and Craig Perry became convinced that the market was mistakenly pricing in inflation and that the Fed would keep interest rates near zero for longer than expected.
