Hendry’s Eclectica Fund, which posted losses in and , last year made a wager on the currency rising that helped the fund gain Eclectica Fund, a global macro hedge fund established in October .. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec Year. Eclectica Asset Management LLP is authorised and regulated by the Financial Conduct Authority / Private & Confidential. 2 Hugh Hendry, April

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Japanese financial institutions have quadrupled the percentage of their assets held in JGBs. You already know my explanation for why this has happened. Indeed, this peculiarity is circular cund nature.

Hugh Hendry Full Eclectica Letter on China’s Impending Collapse

Even so, the aluminium situation mimics that of steel, but with an even mightier inventory overhang. And so the Chinese are colonising the African continent in the pursuit of commodities and the Indian government has just agreed to buy tons of the IMF’s gold hoard. Harvard’s position could well be construed as a one-way bet.

In other words, hard money was in tight supply and the recovery was neither swift nor decisive. But, like I said, I think events could reignite some of the natives’ old amour.

Hugh Hendry

Of course this is a minority view. The alarming thing is that my opponents see Ferguson et al.

In other words, quantitative easing, masquerading as a cheap but fixed currency regime, has succeeded where Japan’s orthodox version has failed.

If you believe, like I do, that it peaked in then the repercussions are enormous. Almost half of the fund is invested in emerging market equities, commodities, real-estate, private equity and junk bonds.

The Norwegians noted that construction demand had just taken another leg down as buildings started pre-crisis are now finished whilst no further pipeline exists outside of China. The latter have, of course, collapsed and have proven a boon for disposable income.

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But the spell cast by a contemporary cult is hard to resist. Home” [ permanent dead link ]Eclectica Asset Management website. You will never see us pursue a homegrown idea when it is to the detriment of the prevailing trend,” he said. So just how did Van Meegeren fool the Nazis with paintings that today look so awful, so un-Vermeer?

In this scenario, the outcome will disappoint the market’s expectations, which are rampantly bullish as evidenced by this year’s dramatic re-pricing of risk assets. I keep hearing that a dollar devaluation would help matters.

Now remember I have been describing a positive eclecfica scenario: We must remember, however, that British fixed rates are determined by two and three fune swap rates; so effectively the entire stock of UK mortgages are determined by the central bank and could be thought of as floating. Despite his reputation as a contrarianHendry explained to the Financial Times in July that his approach continued to be based in taking advantage of market momentum.

Again, we find ourselves agreeing vigorously.

The trouble is that we are so anchored to the ecldctica past. It is my qpril that the leverage of the economy is only tenable if interest rates stay low and yet, whilst I believe some of aprl agree, they still fervently expect a rise. Consider the steel market. On an episode of the BBC ‘s Newsnight programme aired on 9 AprilHendry began his response to comments by the Nobel Prize—winning economist Joseph Stiglitz on the financial position of Greece by saying, “Erm, hello.

And, I would argue, the economy would come to a crashing halt. Accordingly, China shares the same risk as the world’s largest pension schemes. Not typically renowned as a hotbed of reactionary fervour, the fund is nevertheless radical in its construction and has come to typify the A-B-D stance.

Past results are not indicative of future results. Eclectica Asset Management was founded in [9] when Hendry and his colleague Simon Batten purchased the management contract of the Eclectica Fund from Odey to establish themselves as a stand-alone fund manager. Communications from InvestorsInsight are intended solely for informational purposes. Effectively, the world’s bond vigilantes are going to punish the Fed and tighten monetary policy. Lee, reflected on this as he sat in the chilly offices of Norsk Hydro last week watching the snow fall outside.


Can Hugh Hendry teach us to love hedge funds? Austerity beckons for the clergymen; heaven will have to pay their stipend. It is as though the rap artist 50 Cent has taken over the advisory board. Have you ever asked yourself why car prices in America are so low compared with those in Europe? Admittedly, their strong petro-currency does not help and you have to discount the solace I seek in finding people even more miserable than myself.

Hugh Hendry – Wikipedia

It is a apgil that I will constantly revisit in my arguments below. As you know, I am in the deflation camp for now, and we own a modest amount of government bonds and a series of asymmetric bets which would receive a boost from a return to some form of risk aversion.

People” [ permanent dead link ]Eclectica Asset Management website. The homogeneous nature of steel, as well as other factors such as its price-to-density, allows for the export of the finished good across trade boundaries. My intellectual foes, on edlectica other hand, are adamant that long duration government bonds are a short. This page was last edited on 11 Novemberat Blog Subscription Form Email Notifications.