Eclectica's Hendry plays 'good' vs 'bad' emerging markets

Hedge fund manager Hugh Hendry moved to play the summer EM sell-off by pitting 'good' emerging markets against struggling peers.

The manager of the £210m Eclectica Absolute Macro fund said he moved into August, a period of further underperformance for a number of emerging markets, with the introduction of a new FX trade. Hendry pitted a selection of 'good' EM currencies - from countries with positive account balances and "modest" overseas borrowings - against 'bad' EM counterparts. That trade would appear to have been successful over the month: as HSBC analysts noted earlier this month, emerging nations with current account deficits have been particularly badly hit in August by the rise in US bond yields. El...