As investors have become focused on Europe and Europe’s financial problems, China and its continuing economic miracle has dropped from media and investor attention. Valuations of Chinese companies listed outside the United States have declined, and investing in Chinese Chinese equities has declined in popularity.
Famed investor Barton Biggs of Traxis Investors recently was quoted as saying, “I think right now we are beginning a run in China, For the last four months China has hurt me rather than helped me, but I think it is about to end.”
Biggs, has more than half of his firm’s investments in Asia, and is convinced that the Chinese authorities are engineering a turn around, based on “careful signs by the Chinese authorities.”
As quoted by Yahoo Finance’s Breakout, Biggs indicated that the China bears and “wise guys” are in for a rude awakening.
“I think we’re about to run in the shorts on China,” Biggs was quoted as saying. “I think they’re (the shorts) going to feel considerable pain.”
In addition to major investments in China, Biggs’ Traxis Partners also has big investments in Thailand, Indonesia and Hong Kong.
Biggs indicated that he thinks that the U.S. and Europe will endure five years of pain and suffering, but that Asia will be the engine of world economic growth.
Biggs is a New York money manager who runs the multi-billion hedge fund, Traxis Partners. Bigss was previously the chief global strategist for Morgan Stanley, a firm that he worked at for thirty years.
Biggs is frequently seen on CNBC, and has been a member of the Barron’s Roundtable.
Biggs has been named by Institutional Investor magazine to its “All-America Research Team” 10 times, and was voted the top global strategist and first in global asset allocation from 1996 to 2000 by the magazine’s “Investor Global Research Team.”
It wouldn’t be a stretch to say Biggs wrote the book on emerging-market investing.
Aurthor: Jeffrey Friedland
Filed under: China, Chinese, Global Economy, Finance and Investments, Global Emerging Company, Global Finance
