Pursuits

Carlyle's ESG, Passport Cash In on China Bets as Yuan Plummets

  • Hedge fund manager says currency could fall by 30% in 2016
  • Burbank's special opportunities fund returned 17.6% last year
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For Emerging Sovereign Group’s Brian McCarthy, the decline in the Chinese yuanarrived right on schedule.

In an Oct. 8 conference call with investors, McCarthy predicted that China would allow the yuan’s drop against the dollar to accelerate after the International Monetary Fund designated the yuan a global reserve currency. On Nov. 30, in a nod to China’s global economic might, the IMF’s Executive Board gave the yuan the global status that the country’s leaders sought.