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Bill Ackman Bets Against the Hong Kong Dollar, Saying the Peg Will Break

  • Pershing founder says hedge fund has a large position via puts
  • Hong Kong dollar weakness is reversing as liquidity shrinks
Bill Ackman

Bill Ackman

Photographer: Christopher Goodney/Bloomberg
Updated on

Bill Ackman, the billionaire founder of hedge fund Pershing Square Capital Management LP, said he’s betting against the Hong Kong dollar and its peg with the greenback.

Pershing owns a “large notional position” in Hong Kong dollar put options -- bearish wagers on the currency -- Ackman said in a tweet, adding that the peg no longer made sense for Hong Kong. He referenced a Bloomberg Opinion column by Richard Cookson, which argued that a surge in debt, falling asset prices and a weakening economy will make defending the currency link problematic.