Ideas to Watch: A Q&A With Octavian Report Founder Richard Hurowitz

The latest issue of Octavian Report.

The latest issue of Octavian Report.

What’s Max reading these days? A newsletter called The Octavian Report, which comes out with its second issue today. It’s a thinking person’s compendium of interviews and articles on the top ideas of the moment.

The magazine’s founder is Richard Hurowitz, an investor and entrepreneur who previously founded and ran Octavian Advisors, a $1.4 billion global hedge fund firm that invested in fifty countries on six continents. Published six times per year, the print-and-online publication is subscription-only ($1,050 annually).

Basis Points spoke with Hurowitz about the new magazine and the geopolitical and market trends he’s seeing.

What’s the concept behind Octavian? Why did you start the magazine? Who are your readers? 

The idea behind The Octavian Report is to provide the kind of insight and access that the world’s leading investment firms create for themselves, including concrete investment ideas and risk analysis.  It is to create a platform and community of leading experts on topics that are currently in the forefront or which we think readers should be thinking about.  It is a mix of interviews, analysis and opportunities presented in a concise format that is easily digested.    We also will offer calls, events and other forms of access to our contributors.

The magazine is not focused on breaking news, but on thoughtful analysis.  Our readers are investors, decision-makers, thought leaders and anyone interested in real ideas.  We will also cover culture, including film, books, art and history.  Our first issue included interviews with Vice President Cheney, former Spanish Prime Minister Jose Maria Aznar, famed economist Nouriel Roubini, and Clinton Commerce Secretary Mickey Kantor, and articles by Steven Cook of the CFR, film critic Jeffrey Lyons, and best-selling historian David Nasaw, among others.

As you look at 2015, what are the biggest geopolitical stories you see playing out?

I am concerned that extremist political parties will continue to gain power and influence in Europe and potentially endanger the Eurozone by changing the current bailout framework in an unsustainable way.

I think Vladimir Putin and the continuing crisis in the Ukraine is going to be a major story.  It’s unclear how it will play out and there is a possibility of miscalculation on both sides.  The more pressure he’s under, whether from the oil price or politics, the more concerning it is and Ukraine is far more critical to Russia than to us.

The fallout from any nuclear deal with Iran is going to be a big deal as well.  The Middle East has become more and more complicated and doesn’t feel like its getting better.

Name 3 people we’re going to hear more about this year: under-appreciated world leaders, emerging power players, philanthropists, up-and-comers…

  • Matteo Renzi, prime minister of Italy, is 40 years old and Italy has become a linch-pin of the Eurozone
  • Scott Walker seems to me like he may become a serious contender for the GOP nomination or vice presidency.
  • Dr. Jim Allison, the founder of immunotherapy, will get the Nobel Prize soon.
  • I think there will also continue to be a focus on what Modi is able to accomplish in India

What are some trends you see for the world financial markets this year? 

  • Equity markets feel overheated to me in the short-term
  • I am concerned about a return to a euro crisis stemming from a sudden political changes on the Continent
  • I think more people may become interested in gold
  • The bond market feels like an accident waiting to happen, but central banks seem determined to keep rates down

In 2014 we heard frequently about economic inequality. Is there an idea that will come to the fore this year?

I don’t think concerns about income or wealth inequality are going to go away.  Ironically, most economists would say that excessive quantitative easing and increased growth in government, the policies pushed by the left, generally leads to an increase in income inequality.  Social unrest in Europe is a serious potential problem but the reform necessary does not seem to be in the making or politically tenable.