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It isn't very easy to garner any insights from Paul Tudor Jones' 13F filings. He is usually a short term trader with hundreds of small meaningless positions. Fortunately, we have his latest investor letters and have an idea about what he is thinking. Tudor Jones currently thinks that Chinese and Asian currencies are significantly undervalued against the U.S. dollar. In order to keep their export driven economies humming, these countries opted to import dollar inflation. Jones estimates that Chinese RMB is 35% - 72% cheaper against the U.S. dollar than in 1993. This is what Jones suggests U.S. should do:

"It could intervene in the foreign exchange market against the Hong Kong dollar, and exert its influence on what is by definition a bilateral, not unilateral, exchange rate. This is no different from what Asia does everyday to the U.S. and would speed up RMB appreciation. Just as a matter of prudent reserve management, the U.S. could also intervene against other Asian currency suppressors to diversify its foreign exchange reserves."

Paul Tudor Jones thinks Asian currencies are poised to appreciate significantly and he is betting accordingly. At the end of December, he had the following long positions in his portfolio:

Stock

Ticker

Value (x1000)

SPDR DOW JONES IND AVG ETF

DIA

289,075

Call

SECTOR SPDR FINANCIALS

XLF

85,732

Call

SPDR S&P 500 ETF TRUST

SPY

75,450

ISHARES CHINA 25

FXI

51,708

Call

ISHARES EMERGING MARKETS ETF

EEM

47,642

Call

ISHARES EMERGING MARKETS ETF

EEM

44,588

SECTOR SPDR TECHNOLOGY

XLK

37,785

Call

CITIGROUP INC

C

18,657

GAIN CAPITAL HOLDINGS INC

GCAP

17,600

AT&T INC

T

15,654

ISHARES SOUTH KOREA ETF

EWY

12,393

PROGENICS PHARMACEUTICALS

PGNX

11,255

ISHARES CHINA 25

FXI

10,773

MICROSOFT CORP

MSFT

10,285

BARRICK GOLD CORP

ABX

10,051

PFIZER INC

PFE

9,620

Call

HCP INC

HCP

7,358

HUNTINGTON BANCSHARES INC

HBAN

6,918

MEAD JOHNSON NUTRITION CO

MJN

5,048

MARKET VECTORS ETF TRUST

MOO

5,033

You can see that he had long positions and call options on the China ETF, South Korea ETF, and the Emerging Market ETF. Other than these, he also had some financials, technology, and healthcare plays. He also has smaller positions is Barrick Gold and Agribusiness ETF which are possible hedges against inflation.

Paul Tudor Jones isn't only hedge fund manager who is bearish about the U.S. dollar. Jim Rogers is worried about U.S. inflation and has been betting on commodities. Ray Dalio, the owner of world's largest hedge fund, is extremely bullish about emerging markets and gold.

Source: Paul Tudor Jones' Favorite Long Positions