Hugh Hendry, one of the hedge fund industry's most outspoken managers, has warned that the economic crisis is headed for Asia, with the region's largest economy, China, struggling under a bursting property bubble and tumbling demand for its exports.
Hendry, who runs Eclectica Asset Management, which has around $700 million in assets, said in his first investor letter of great length since the winter of 2010 that he was "more pessimistic on Chinese growth than ever."
"This makes us bearish on most Asian stocks, bearish on industrial commodity prices, interested in some U.S. stocks, a seller of high variance equities and deeply concerned that Japan could become the focal point of the next global leg down," the manager said in the April-dated letter obtained by Reuters.
He cites Japanese group Hitachi as "too expensive" whilst buying 5-year CDS on Toshiba.
Scotsman Hendry, who is well-known for his contrarian, bearish bets on markets, has in the past profited from his stance on China.
Keep reading: Hugh Hendry Predicts Crisis Will Spread to Asia – Asia Business News – CNBC.
