Tue, Jul 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bearish views on Asian markets in 2014 lead hedge fund to maximum net short

Thursday, December 12, 2013

Beverly Chandler, Opalesque London:

Stewart Paterson, is currently running a significant net short at the maximum permissible level of minus 20% in Tiburon Taurus, the firm’s Asian hedge fund, as he bearishly declares: "There is a high likelihood that investors in Asia will lose money in the coming year."

The background to his views is a wealth of warning signs and macro factors that lead him to believe that Asian markets will experience a rough time in 2014. While 2013 was a flat year for Asian markets in aggregate, Paterson believes that 2014 will prove more difficult. His views are based on the second round of chaos which is starting to materialise in Europe; the role of the US dollar; the long term outlook for China and the fact that the yen is breaking new lows.

Paterson comments that since 2002 the dollar has steadily weakened, and during that time emerging markets which target their exchange rates against the dollar have had an easier time. "Post the global financial crisis, the interest rate structures in the Eurozone and the US have clearly been an incentive for emerging markets to borrow offshore" he says. Beyond that, in the hunt for yields, money has flowed offshore dramatically with US citizens increasing their holdings of foreign financial assets from $2tln in 2002 to $7tln now. "It’s worrying that Americans are now shorter of their own currency more than ever before" he says.

"We go into 2014 wit......................

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. Launches - Crypto boom: 15 new hedge funds want in on 84,000% returns, Crypto madness is striking VCs as Union Square analyst leaves to start new fund[more]

    Crypto boom: 15 new hedge funds want in on 84,000% returns From Forbes.com: With 43 projects raising $1.2 billion in initial coin offerings since May 1, according to Nick Tomaino's The Control, and with stratospheric returns for so many ICOs -- 82,000% for Ethereum, 56,000% for IOTA, 44,

  2. FinTech - The machines are coming... Elon Musk's grim warning, Tezos' $232 million ICO may just be the beginning, A gentle introduction to Initial Coin Offerings (ICOs), Billion dollar tokens, ICOS & crazy market swings WTF is going on!?, How AI is changing the way we invest, How the tech revolution is bringing flip-flops and beanbags to Wall Street, A 'machine-learning' approach to venture capital[more]

    The machines are coming... Elon Musk's grim warning From Tenplay.com.au: Tesla chief Elon Musk has called on US Governors to take 'decisive' action to curtail "the greatest risk we face as a civilization": Artificial Intelligence, or AI. Speaking at a meeting of the National Governor Ass

  3. News Briefs – Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9%, Rwanda: Global hedge fund to increase investments[more]

    Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9% Sears Holdings has landed a fresh line of credit, valued at $200 million, from its CEO Eddie Lampert's hedge fund, the retailer said Monday. Sears' stock climbed about 9 percent higher Monda

  4. Despite current limits, robo-advisors will be preferred investment solution for retail, gain importance for affluent and high net worth[more]

    Matthias Knab, Opalesque: Flynt, a Swiss FinTech focusing on proprietary technology platform for private and institutional clients, has published a brief paper on "Investing in the world of robo-advice and passive instruments". As investors will become more reluctant to pay for investment advi

  5. Investing - Hedge fund CQS favors structured credit, Direct lending funds' fading all-weather appeal, Funds hunt for cracks in most-prized US shopping malls[more]

    Hedge fund CQS favors structured credit From BArrons.com: A hedge fund manager that can invest across the investment landscape says in his latest semi annual report this week that he's finding opportunities in structured credit -- particularly the shorter term, floating rate kind. Exampl