Mon, Jan 23, 2017
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 - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised