Latest offering from F&C to short China

F&C Thames River's Kristof Bulkai is set to implement a number of short positions in China when his GEM Absolute Return fund launches on 22 June.

Bulkai, who will co-manage the fund with Hugo Rogers, is bearish on the country following tightening measures undertaken by the Chinese government that have squeezed margins. Bulkai takes the view Chinese engineering and construction companies’ pricing power and franchises have been weakend by the government’s move to boost domestic economic growth by slashing spending. “On a cyclical basis we will have shorts in base and industrial metals as well as engineering and construction companies,” the manager said. “Investment in Chinese construction is set to decline on a year-on-year...