Wed, Oct 7, 2015
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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with

  4. A hedge fund strategy that seems to have fizzled[more]

    From The hedge fund strategy that has attracted the most money this year is on course to cause some of the biggest losses for investors, in the latest example of the dangers of going with the crowd. Institutions and individuals have piled an estimated $20 billion (Dh73 billion) into ma

  5. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i