Sat, Oct 25, 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

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t