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Bill Ackman's Full Presentation on the HKD

September 15, 2011 | About:
Bill Ackman gave a presentation yesterday at the Delevering Alpha Conference.

Ackman’s favorite investment is the Hong Kong dollar. Ackman commented that the Hong Kong dollar is “one of the most undervalued currencies in the world.”

Ackman is buying Hong Kong dollar call options, because they are relatively cheap. Bill Ackman stated that “It’s a small trade, but if it’s successful, it will be our most profitable.” He also says retail investors could outright buy the currency, or buy it using leverage.

“It is a safe bet for the average man on the street,” Ackman said. Ackman noted that although the currency position is a small position, “If it works, it’ll be far the most profitable,” Ackman said.

Ackman noted that he is not trying to imitate George Soros, who made a fortune by betting against the British Pound in 1990. “I’m not pushing Hong Kong to do anything.”

However, Ackman noted the bearish scenario:

“If China implodes, that’s bad for this trade,” Ackman said, adding that China’s weakness would hurt everyone.

He gave a 154-slide presentation on his thesis yesterday. Below are some highlights and the full document in Scribd:

Bill Ackman's Presentation on the Hong Kong Dollar: Linked to Win

About the author:

Jacob Wolinsky
My investment ideas have been inspired by many of value investors including Benjamin Graham, Charles Royce, John Neff, Joel Greenblatt, Peter Lynch, Seth Klarman,Martin Whitman and Bruce Greenwald. .I live with my wife and daughter in Monsey, NY. I can be contacted jacobwolinsky(AT)gmail.com and my blog is www.valuewalk.com

Visit Jacob Wolinsky's Website


Rating: 4.4/5 (21 votes)

Comments

jto_1
Jto_1 - 3 years ago
Paul Tudor Jones mentioned this about a year ago.

Old news this trade has been around, Ackman is just piggybacking
yswolinsky
Yswolinsky - 2 years ago
Then why would he wait a year?
autobotalex
Autobotalex - 2 years ago
As a personal small US investor, can someone tell me exactly how I can buy Call Option on the HKD? What symbol do I type in? I have online brokerages such as TDAmeritrade and Fidelity. Thanks.

bjbussell1
Bjbussell1 premium member - 2 years ago
Thanks for the post Jacob. Same question as the one above. As a "small-time" retail investor, where can I go to execute this trade with the call options? - my broker can't help me either - etrade. Is there a minimum to get in the door? Any other suggestions?

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