Posted on 12/12/2011 6:52:12 PM PST by TigerLikesRooster
Hendry's 'China Short' Fund Makes Big Returns
Published: Monday, 12 Dec 2011 | 9:08 PM ET
By: Sam Jones, Hedge Fund Correspondent
Shorting the credit of companies positioned to do badly from a Chinese slowdown has proved to be one of the hedge fund industry’s most successful trades of 2011.
Hugh Hendry, the outspoken U.K. hedge fund manager known for his bearish, often contrarian views on the global economy, has seen his ‘China short’ fund rack up gains of more than 52 percent so far this year, investors have told the Financial Times.
The gains compare to a loss for the average hedge fund of 4.37 percent over the past 11 months, data from Hedge Fund Research released last week show.
Mr Hendry’s credit fund is constructed from a portfolio of short positions against highly cyclical Japanese corporate credits that have high exposure to Chinese demand.
His larger flagship Eclectica Fund, which also has a portion of its portfolio in credit default swaps contracts against Japanese credits, has performed well too. Investors report it has made gains of 12.2 per cent so far this year.
(Excerpt) Read more at cnbc.com ...
P!
I would not play this game now, could be too late.
I think the market will founder (with volatility) until it is clear a more pro business administration comes into play. Europe will cast a pall, for now.
Mohammed Al Arian said the world economic condition is “terrifying”. It will take years to overcome this situation.
However, for the prudent investor who buys at the right time, there are many bargains.
I would not play this game now, could be too late.
I think the market will founder (with volatility) until it is clear a more pro business administration comes into play. Europe will cast a pall, for now.
Mohammed Al Arian said the world economic condition is “terrifying”. It will take years to overcome this situation.
However, for the prudent investor who buys at the right time, there are many bargains.
In related news, the Chicago Mercantile Exchange will begin accepting margin deposits in yuan.
Bfl
You are right. The time to get in was when they were still many naysayers about the short position, i.e., so-called China bulls.
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