A hedge fund designed to profit from a slowdown in the Chinese economy, run by the London hedge fund manager Hugh Hendry, has soared in value over the past two months as global markets have plummeted and industry peers have suffered damaging losses.
Mr Hendry – a former Odey Asset Management trader – is one of only a handful of hedge fund managers positioned against Chinese growth and therefore pitted against heavyweight investors such as Anthony Bolton.
Mr Hendry’s Eclectica Credit Fund is constructed from a portfolio of short positions against highly cyclical Japanese corporate credits that have high exposure to Chinese demand.
The fund, which raised a modest $150m from a handful of London investors when it launched late last year, is up 38.65 per cent so far this year, having returned 22.5 per cent in August – the hedge fund industry’s worst month since the collapse of Lehman Brothers three years ago.
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