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Hugh Hendry’s Trade Update | Eclectica Asset Management November 2010

Post a Comment December 23, 2010 – 12:32 am |   | Permalink |  Print This Post |

We are huge fans of the outspoken and candid Hugh Hendry - founder of Eclectica Asset Management - who has said that he suffers from Tourette’s Syndrome, often saying “F-CK !” at the most inappropriate times! We aim to allocate some of our funds to Eclectica Asset Management when we feel the time is right.

For November, here are the following trades taken by Hugh Hendry’s Eclectica Asset Management’s CF Eclectica Absolute Macro Fund:

- long Yen/Short Euro (5% of NAV)

- long AUD/Short Euro (5% of NAV)

We share his bearish views on the Euro, but am not sure why he picked the Yen. From previous interviews, we know that Hugh has been toying with the idea of an extreme rise in the Yen to the point of pushing Japanese companies to the brink of collapse - this will ultimately force the hands of the central bank to reflate/devalue the Yen (printing) to be more competitive. This will ultimately lead to the next “bull” market in the Nikkei. We are not brave enough to long the Yen when it is at 15 year highs.