Hendry’s ‘China Short’ Bet Comes Up Trumps

Dec 13 2011 | 11:38am 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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of