Warren Capital believes that there is a mispricing of the US bond yields and the Japanese yen.

- Odd behavior at recent treasury auctions only strengthens our views. The caveat here is another financial meltdown but we believe the structuring of our position will contain our risk should such an event take place, writes Warren Capital and goes on:

- The level of the Japanese yen makes no sense to us. The country is suffering under a load of record debt to GDP and growth, if any, is anemic. Unlike some other market participants we are not putting our faith and money in the BOJ stepping in. Our faith is purely in the force of economic gravity taking hold and returning this overpriced currency to an economically appropriate level, writes Warren Capital.

Warren Capital has become moderately positive on equities and remain the same on selected commodities and believe there is further credit tightening to be enjoyed, particularly in Nordic issues.

Fourth Moment Macro, which is managed by Warren Capital, decreased 1.3 pct in February 2010.