Thu, Jul 24, 2014
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag