Yusko Says Japan Equities Will Beat U.S. After ‘Dead Wrong’ Call

Apr 01, 2014 12:03 pm ET

April 1 (Bloomberg) -- Mark Yusko, chief executive officer at Morgan Creek Capital Management LLC, said Japanese stocks will do better this year than U.S. equities, which are “fully valued.”

Over the next decade, Japanese equities will beat U.S. stocks by a multiple of two, Yusko said today in a Bloomberg Television interview with Erik Schatzker and Stephanie Ruhle. U.S. stocks will have a “meandering year” in 2014, he said.

Yusko, who founded Chapel Hill, North Carolina-based Morgan Creek in 2004, said he was “dead wrong” about Japan stocks in the first quarter. The Topix index fell 7.6 percent in the first three months of this year, the biggest loss since 2012, as the Standard & Poor’s 500 Index of U.S. stocks rose 1.3 percent.

Hedge funds have been betting on Japanese equities for more than 12 months, wagering that Prime Minister Shinzo Abe’s monetary stimulus would end deflation.