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Hugh Hendry is betting on the unsustainability of world’s debt.”Our portfolios are structured around a deflationary thesis,” he told City AM. “There is too much debt in the world.”
What he’s actually betting on now is the Euro tumbling and he has readily admitted it.
On BBC’s Newsnight last month, Hendry answered this question: “So you want to see Greece tumble and the Euro currency tumble?”
Of course Greece tumbled practically the next day, so it’s no surprise Hendry’s fund, Eclectica, is up 8% YTD.
One thing that might halt his future profits if the Euro falls? Surprise, regulation.
Hendry says Europe is “fiddling” with hedge funds through regulation proposals, like the Alternative Investment Fund Managers directive, which would impose capital and liquidity requirements.
“If that becomes too much of a burden we would have to relocate out of the EU,” Hendry told City AM.
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