Thu, Nov 23, 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. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s

  2. Fund Profile - The Tiger of Silicon Valley: Glen Kacher's sizzling hedge fund[more]

    From Forbes.com: When you live and work in a town where the median home costs $2.7 million and hobnob with the executives of billionaire factories like Facebook and Tesla, it's easy to see why you might think technology stocks are invincible. So far in 2017, the Nasdaq Composite index has gained 25%

  3. Launches - Asset manager launches Europe's first bitcoin mutual fund, Prime Capital Aviation Debt Fund enables aviation debt investments for institutional investors[more]

    Asset manager launches Europe's first bitcoin mutual fund From Coindesk.com: A French asset manager has announced the launch of Europe's first mutual fund centered around bitcoin. Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutio

  4. Legal - Consumers say hedge fund financed illegal tribal lending, New York's highest court permits shareholder of a Cayman-incorporated company to bypass Cayman law and bring derivative action in New York[more]

    Consumers say hedge fund financed illegal tribal lending From Law360.com: Vermont residents on Tuesday hit a hedge fund with a proposed class action in federal court alleging it helped concoct a sham tribal payday lending scheme meant to skirt laws preventing companies from charging cons

  5. Investing - Tech still hedge funds' sweetheart sector: Goldman Sachs, Hedge funds haven't been this leveraged to buy stocks since the bull market began, Top financials hedge fund details short bet against Morningstar, Fund CRC presents an offer for Carige's consumer credit unit, Hedge funds sell shares in Altice USA after difficult quarter[more]

    Tech still hedge funds' sweetheart sector: Goldman Sachs From Reuters.com: Tech stocks remain the largest net sector exposure for equity hedge funds, which are set to deliver their strongest returns since 2013, Goldman Sachs said on Wednesday in a note on the industry's most and l