‘It wasn’t meant to be like this’: Hugh Hendry’s farewell letter than three years later he quit Odey to set up his hedge fund boutique Eclectica. Below we repost his full final letter in its entirety, and wish Hendry good luck in his next endeavour. * * *. CF Eclectica Absolute Macro Fund. Hugh Hendry is back with a bang after a two year hiatus with what so many have been clamoring for, for so long – another must read letter from.
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Hugh Hendry’s Eclectica Letter: The rate of living theory and an enduring US economic recovery
According to this article in the Independent, Hendry was the first in his family and one of the only people at his school to go to university. However we view the present monetary policy as being undoubtedly the worst of both worlds — we have populist rebellions and bad banks.
Typically these creditor nations already have low interest rates and seem leetter to need further currency weakness if they are to defend their competitiveness. Time will tell, but for now, we are again at odds with consensus opinion.
According to the Independenthe was ‘labelled a troublemaker. He became a regular media figure during the crisis, even as his own business was buffeted by waves of volatility.
Hugh Hendry’s Eclectica Letter: Hard hats and sunglasses
They adhered to the terms of their risk budget. And commodities have already acknowledged the upturn in the fortunes of the global economy and are likely to trend higher still. The absurdity of this demonstrates the problem of devising an appropriate monetary policy for the bloc.
Please click the verification link in your email to activate your newsletter subscription. Looking at the one year implied volatility on 10 year swaps, the cost of entry seems reasonable even compared to the narrow trading range we have seen this year. Fixed income volatility will surge.
An audience with Hugh Hendry: ‘We need more pirates’ – Financial News
Hendry received his own schooling in maverick trading during his time with hedge fund icon Crispin Odey. QE rescued the financial system but the liquidity created was distributed to the very rich who have a very low monetary velocity and so the expected inflation fillip never materialised as the liquidity injection came to be stored rather than multiplied by the banking system.
He stayed there for eight years and managed funds in the US and British teams. They will steepen of course but I fear only after the virus of cost push inflation is released eclctica the global hothouse. We still see the global economy as grotesquely distorted by the presence of fixed exchange rates, the unraveling of which is creating financial anarchy, just as it did in the s and s. It’s war, real-life drama, and you mistakenly think you’re going to die because you’re wrapped up in it, which is so preposterous.
Odey elcectica also no fan of how the industry has evolved, Hendry adds. Subscribe to ValueWalk Newsletter. And that will be followed in the autumn by federal elections in Germany, where recent regional polls saw a disastrous outcome for the once unassailable Chancellor Merkel.
Now however the correlation is mildly positive. So it is entirely rational especially if you have never met a hedge fund manager to assume the industry attracts the brightest, smartest minds.
And now the European continent is recovering. We have previously commented on the notion of a Chinese growth tax, whereby its insatiable appetite for commodity heavy economic expansion drove the super-cycle and persistently led to western headline inflation rates greater than core and by implication tighter monetary policy than was warranted.
He should quit now. And yet fixed income volatility resides on the floor… Looking at the one year implied volatility on 10 year swaps, the cost of entry seems reasonable even compared to the narrow trading range we have seen this year.
He also thinks they are the political opposition. I would stay long. The question now is just how we can make money in the tough business of global macro investing this year. Today the opposite is the case: Odey invited Hendry to dinner and reportedly told him: They hiked rates 50 basis points, on top of the recent increase of 25 basis points when they followed the Fed.
An audience with Hugh Hendry: ‘We need more pirates’
Perhaps they are just too smart. Perhaps they just try too hard. No long-distance commuting after Brexit How to stay married when you work in banking. Instead, my weapons are irony and paradox. Today it trades around basis points.
These are, in no stringent order:. Since the Brexit referendum we have been developing our thoughts about what the Leave vote might mean, not just for the UK, but for the European project as a whole.