This Top Hedge Fund Is Betting Against Commodities, China Debt
- Congrong’s Lu sees efforts to curb capacity slowing down
- Fund is long on some stocks, including consumer supply chain
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Accelerating Chinese inflation will derail a global rally in commodities and deepen a rout in the nation’s bonds, according to a top-performing macro fund manager.
Lu Jun, who manages about $1.6 billion at Shanghai Congrong Investment Management Co., is shorting raw materials such as ferrous and chemical products in a bet that mounting price pressures will cut short government efforts to reduce capacity in mills. He’s also bearish on Chinese sovereign debt, he said in an interview in his Shanghai office.