Lord Rothschild Takes out £130m Bet Against the Euro

HJ: Well, this certainly confirms what many are claiming– that the Euro is doomed and the endless posturing and measures taken by the ECB, Germany and others are only preventing the inevitable and making things unfathomably worse.  However, it should also be noted, that even though this is an extraordinary sum of money, it is pocket change for Lord Rothschild.  It could also be a red herring to further manipulate markets and/or people involved in the game.  Only time will tell I suppose… – Truth

Lord Rothschild takes £130m bet against the euro

Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.

9:55PM BST 18 Aug 2012

The Telegraph

The member of the banking dynasty has taken the position through RIT Capital Partners, the £1.9bn investment trust of which he is executive chairman.

The fact that the former investment banker, a senior member of the Rothschild family, has taken such a view will be seen as a further negative for the currency.

The latest omen follows news in The Daily Telegraph late last week that the government of Finland is already preparing for the euro’s break-up.

RIT, which Lord Rothschild has led since 1988, had a -7pc net short position in terms of principal currency exposures on the euro at the end of July, up from -3pc at the end of January. Given a net asset value of £1.836bn at the end of July, the position is worth £128m.

Sources close to RIT suggested that the position was not a dogmatic negative view on the euro as a currency, but rather a realistic approach on a currency that remains relatively weak.

It is not the first time Lord Rothschild has used currency positions as a form of hedge. RIT significantly increased its exposure in sterling after the currency’s decline in 2008, but then scaled back on both the sterling and the euro, anticipating the ensuing recessions in both regions.

Read the rest of the article here: The Telegraph


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