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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note