Bill Gross, who recommended shorting the Chinese stock market last month before it plunged, didn’t actually do the trade.
The Shenzhen Composite Index has fallen 38 percent since the famed Janus Capital Group Inc. money manager recommended shorting it last month. Gross chose instead to bet against the Standard & Poor’s 500 Index and bet against emerging market currencies that would be affected by falling stocks in China.
“I was trying to stick to my knitting, and China wasn’t really my knitting,” he said in a telephone interview Wednesday.
Gross has made two prescient calls on the markets this year, while missing profits from both of them. In April, he recommended the “short of a lifetime” against the German bund and failed to profit even as his prediction came to fruition. He later acknowledged that his forecast was “well-timed but not necessarily well-executed.”
“Having been unrewarded, I guess, on the German bund, I decided to let the public know, but to pursue my standard knitting, which has worked pretty well for the last month-and-a- half. I’m making it back and I’m sort of happy.”
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