Bitcoin Compared To 3D Printing By Hendry, Who Would Buy Both

0
Bitcoin Compared To 3D Printing By Hendry, Who Would Buy Both
Image source: Real Vision TV Video Screenshot

Hugh Hendry said that he would buy online virtual currency Bitcoin if it was feasible by his fund. Hendry, who bought 3D printing stocks as a play on trend-driven, QE-fueled equity markets, believes that the rise in Bitcoin amounts to “the same thing,” says a report from Investmentweek.

Play Quizzes 4

Bitcoin is following a rising trend

All the 3D printing stock listed in the U.S. stock exchange are trading at 50 times earnings, but Hendry is not concerned with the over valuations of such stocks.

Speaking at a Harrington Cooper conference, Hendry said “We are in 3D printing stocks. I say to my team ‘don’t tell me the valuations, it is trending’.” At the conference, Hendry also revealed he is no longer bearish.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

According to Hendry, he will not hesitate to buy Bitcoin if it is available on a regular exchange. Recently, Bitcoin surged to over $1,000 per coin for the first time ever. Hendry added that in this scenario, Bitcoin can touch $1 million. Although there are no qualitative reasons to support this uptrend the currency is just going following the trend. He said that owning 3D printing stocks or Bitcoin is almost the same.

Policy outweighs fundamental factors

Hendry said that the fundamental factors of the equity market do not hold any importance when policy is skewed.

“There is no point arguing about the one-way causality we [as an industry] believe determines our processes. That is all about a belief this is rational.”

Talking about a common belief, Hendry said that the market is moving higher because the economy is and corporate cash flows are improving, but when there are monetary disturbances in recurring mode, it hardly matters.

He said that hedge fund managers are more concerned about developments in China, but trend driven investors can also trade effectively in Chinese stocks.

“You could go long consumer discretionary or long Chinese internet stocks, and hedge out the beta,” Hendry said.

Hendry Eclectica’s August performance

Hendry played short on the Rupee as the hedge funds managed by him performed almost flat in August. Losses in equities were compensated by profits from shorting EM currencies. Hendry’s Eclectica fund gained 75bps from short EM currency and equity trades. In Japan, where equities dropped after an impressive run in the beginning, the fund managed to gain a modest 2bps from re-entering long positions in late August. Form the short Chinese equity index trade, the fund made a marginal loss, but gained 14bps from Korean interest rate positions.

Updated on

Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
Previous article Tesla Motors Inc (TSLA) Faces Another Obstacle In Ohio
Next article NYSE Builds a Dark Pool

No posts to display