Yesterday Pershing Square Capital Management’s Bill Ackman announced his long bet on the Hong Kong Dollar, predicting that Hong Kong’s central bank will decide to relinquish the paper’s peg to the USD in favour of the yuan.
Essentially, his reasoning is that he thinks the bank’s best bet to stem inflation — which accelerated to 7.9% in July — is to allow the HKD to appreciate. In his mind, this will happen by 2015.
Check out the full presentation (via Also sprach Analyst) he gave at CNBC’s Delivering Alpha conference yesterday and decide for yourself.
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