Nobody has ever accused Scottish hedge fund managers Hugh Hendry of not having a way with words.
In a new Bloomberg Markets profile, the famous manager of the Eclectica fund compares the treatment of hedge funds in Europe to that of the oppressed Roma people under Nicolas Sarkozy: “Hedge funds are a minority. Guess who else is a minority? People from overseas.”
He’s also still hammering away at his short-China thesis. Unlike Chanos, who is presumably betting against China by shorting shares of various resource companies, Hendry is going the CDS route, buying default protection on names like Nippon Steel.
He says Japanese banks are selling protection for them way too cheaply, prompting him to uncork this quintessential Hendry-ism: “I see Japan as a nuclear bomb strapped onto the chest of the global economy…. They’ve got uranium — which is, they sell credit protection: CDSs. I’m the other side of that.”
This is probably the most interesting anti-Japan take out there, seeing as so much of the short-Japan crowd is based on the fiscal situation in Tokyo.