Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Shumway Says Bet Against China’s Yuan, Buy Moody’s Shares

May 5 (Bloomberg) -- Chris Shumway, head of Shumway Capital Partners LLC, recommended betting against the Chinese yuan using forward options and buying shares of Moody’s Corp.

“They have limited options within China to deal with their slowing growth,” Shumway said at the 19th annual Sohn Investment Conference in New York. “Our view is they’re growing at 6 percent and decelerating. They either need to add stimulus or the simplest way to do it is through currency depreciation.”

Shumway said an increase in ratings on European debt issuers will create revenue growth for Moody’s and there could be as much as 123 percent upside in the stock. Moody’s rose 1 percent to $79.41 at 2:06 p.m. in New York extending gains for the past 12 months to 27 percent.

Greenwich, Connecticut-based Shumway invests in public securities and private companies and has also seeded hedge funds. Shumway returned outside capital in his hedge-fund firm in 2011.

To contact the reporter on this story: Kelly Bit in New York at kbit@bloomberg.net

To contact the editors responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net Pierre Paulden

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.