Bill Browder, veteran hedge fund manager and founder of Hermitage Capital, has predicted a crisis that could affect the world’s major currencies and has begun directing his firm’s investments accordingly. According to Reuters, Mr. Browder, who used to invest primarily in Russia but has since moved on to other emerging markets, believes that as American and European budget deficits and debt continue to grow, the debasement of these countries’ major currencies will shift some of the economic power towards the emerging economies, who are less likely to have staggering amounts of debt or the political fallout that could accompany a major country’s attempts to balance their budget and curb spending.
In response, Mr. Browder’s Hermitage Capital has begun investing in commodities in emerging markets. Mr. Browder manages $1 billion for wealthy families and foundations with his Hermitage Global Fund, which has begun buying shares in these commodities and using mining companies and exchange traded funds to get exposure to gold. |
