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Is a strengthening dollar the killer currency call for 2014?
by Danielle Levy on Dec 13, 2013 at 13:22
‘It is a contrarian call. It is something we will do work on. Whether it is something we act on is a different thing,’ he said.
‘The key view in portfolios is to be short of the yen versus base currency, which in this case is sterling and all other views are off the table. We are hedging back to neutral with all opportunities.’
Further yen weakness?
McQuaker is also alert to a potential slowdown in the weakening of the yen next year, following its large scale devaluation as a result of QE.
While his portfolios were fully hedged against the yen for the first four to five months of the year, during the second half he shifted it to a 50% hedge. Nonetheless, he expects the trend will broadly be in favour of a weaker yen compared to the dollar and sterling.
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on Mar 07, 2014 at 13:36