Mon, Mar 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

China-based hedge fund beyond bearish on the fate of the Euro and Europe

Tuesday, November 15, 2011

by Beverly Chandler, Opalesque London:

A paper entitled An Academic Review Behind the Rationale for the Creation of the Euro published by Beijing-based Acacia Capital Management, spells out the extreme cost and chaos a departure of a currency from the Euro would cause.

Luke R. Diaz, partner and director of investor relations at the firm and Ryan Weidenmiller, author of the review, both point out that Europe has been here before with the Euro with the Latin Monetary Union of 1865 which collapsed, ironically enough, because of the activities of Italy. Diaz says: "Those who can not remember the past, as the old saying goes, are condemned to repeat it".

Weidenmiller says: "We still think the current European monetary experiment (in its current form) is likely to fail as it did in the late 1800’s / early 1900’s, i.e. the Latin Monetary Union". "We are executing our strategy in light of this belief."

Weidenmiller also quotes UBS, who appears to agree with him. "Under the current structure, and with the current membership, the Euro does not work." The UBS report estimates that the cost of a weaker country leaving the European Union would be roughly 40-50% of GDP in the first year with considerable costs thereafter.

Weidenmiller says: "While we have been negative on the outlook for Europe, and have called for a potential restructuring of the Euro for quite some time, these cost estimates cited by UBS to restructure the Euro are considerable and would likely hav......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie