Hendry’s ‘China Short’ Bet Comes Up Trumps

Dec 13 2011 | 10:38am ET

UK hedge fund manager and well-known contrarian Hugh Hendry has presided over 52% YTD gains in his ‘China short’ fund, which bet against credit companies poised to falter during a Chinese slowdown.

According to the Financial Times, the trade has proved one of the most successful in the hedge fund industry in 2011.

Hendry’s credit fund shorts highly cyclical Japanese corporate credits with high exposure to Chinese demand.

His flagship Eclectica Fund, also partly invested in credit default swaps contracts against Japanese credits, has returned 12.2% YTD, investors told the FT.

Hendry has been warning of a Chinese slowdown since 2009, going so far as to upload a video to YouTube of himself “looking for tenants” in deserted Chinese real estate developments.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.