Fat Prophets Sees Dollar Inflection, Prepares for Weaker USD
Fat Prophets Global Contrarian Fund Ltd., trading on the ASX under the code FPC, has reported an estimated pre-tax net tangible asset value of $1.9222 per share as at September 2nd, down 1.101% from $1.9436 on August 31st.
The fund's Chief Investment Officer, Angus Geddes, notes that management believes the fund is positioned well after a strong August and has begun September solidly.
Geddes highlights growing market doubts over a near-term U.S. rate hike and a potential inflection in the long-standing USD/JPY uptrend, which could lead to a phase of U.S. dollar weakness.
The fund's strategy is closely tied to macro currency dynamics, particularly the dollar/yen relationship, with Geddes arguing that a weaker U.S. dollar could ease financial conditions and underpin earnings momentum in U.S. markets.