‘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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This makes us bearish on most Asian stocks, bearish on industrial commodity prices, interested in some US stocks, a seller of high variance equities and deeply concerned that Japan could become the focal point of the next global leg down.

Hugh Hendry Is Back – Full Eclectica Letter | Zero Hedge

This is largely because not much has happened to change our views. A trade that could capture the hendy and present danger of more members following the British decision to seek an exit from the political union as mass fears concerning immigration, unemployment and inequality seem set to define national elections in Europe and elsewhere.

I suspect he would have made a fine macro manager. They hiked rates 50 basis points, on top of the recent increase of 25 basis points when lwtter followed the Fed. I meet a lot of inquisitive and extremely intelligent people in this business and I have come to think that maybe this is something of a problem.

Typically these creditor nations already have low interest rates and seem likely to need further currency weakness if eclrctica are to defend their competitiveness. Tech will be heart of next financial crisis.

Not 17th century sailors, but the s hedge fund pioneers.


Hendry says their relationship moved into a ‘second phase’ characterised by the realisation that Odey wasn’t infallible and characterised by the notion that, “That is an interesting view you’re giving me, here’s what I think.

I attempt to observe such things first hand through my extensive travel I promise no more YouTube videosand seek to understand their significance by investigating how previous societies coped under similar circumstances.

Never Miss A Story! Associate director of international equities, Credit Suisse Asset Management Eclectica Asset Management — Where to play lower rates for longer On the other hand, Mexican inflation recently dropped to all-time lows 2.

I am perhaps doing him a gross injustice, but I would summarise as follows: Remember, just two years after the UK similarly rejected the gold standard back in there were just 12 remaining members versus the 45 that had previously been committed. I fear that our no longer small community has been compromised. Read the full letter below: Hugh Hendry, who closed his London-based global macro hedge fund Eclectica Asset Management last September, believes the hedge fund industry suffers from a chronic shortage of pirates.

They also hugely intervened in the currency and ended the old limited currency auctions. So it is entirely rational especially if you have never met a hedge fund manager to assume the industry attracts the brightest, smartest minds.

An audience with Hugh Hendry: ‘We need more pirates’ – Financial News

I have always figured that the first is the real key. Ecclectica money does not appear to be it; he likens his current situation to being a member of the pranksterish pop group The KLF, who famously burned a million pounds. These are, in no stringent order:. And the so far robust performance of the UK economy since the vote will do little to dissuade others from following suit.

He was really not a nice guy and he definitely had an agenda off-camera”. My contention is simply that fixed income volatility has over shot to the downside, that such moments are fleeting and that you are not necessarily dependant on a correction in treasury prices.


This shift in power at the head of the ECB brings into question the resolve of the central bank to act quickly to prevent future crises. I have, I think, a soul mate in the prolific but often misunderstood Italian soccer player Pippo Inzaghi, the second highest scorer in all European club competitions. Our cheat sheet Equities represent just over half of our risk allocation.

Hugh Hendry’s Eclectica Letter: The rate of living theory and an enduring US economic recovery

As you know, I have a proclivity to make money in a bear market. And so they eclecitca out all guns blazing. The macro shock would not necessarily be the subsequent inflation but, that by waiting to respond until later, higher policy rates might fail in the first instance to induce a recession setting off a loop begetting higher and higher rates.

Europe A euro break up does not feature remotely in our projections nevertheless we seek to prevail should such unforeseen cataclysmic scenarios come to pass. It is my assertion that what makes a great fund manager first and foremost is the ability to establish a contentious premise outside the existing belief system and have it go on to become adopted by the broader financial community.

An audience with Hugh Hendry: ‘We need more pirates’

Luckily, however, he met hedge fund manage r Crispen Odey. Odey was also no eclectjca of how the industry has evolved, Hendry adds. After the crisis, Hendry was riding high.