Myriad’s Huttenlocher Sees Sinking Yuan

Jun 13 2014 | 1:10pm ET

Count on a weakening Chinese yuan to hedge your stock portfolio, a top Asia hedge fund manager advises.

Carl Huttenlocher, the former Asia head at Highbridge Capital Management who now runs US$2.4 billion at Myriad Asset Management, said that slowing growth in China will force the country to allow its currency to weaken. Huttenlocher listed the benefits to China from such a weakening at the Sohn/Karen Leung Foundation Conference in Hong Kong yesterday.

A declining yuan would improve China’s export competitiveness, increase inflation and reduce the country’s debt burden, Huttenlocher said. He recommended buying U.S. dollar call spreads against renminbi traded in Hong Kong to take advantage of the opportunity.

According to Huttenlocher, the yuan should fall to seven to the U.S. dollar, up from 6.2 currently.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

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

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of