Hedge fund Avenue Capital says good time to buy

HONG KONG, Dec 3 (Reuters) - Financial assets have become so cheap that now is a good time to buy them, the head of one of the world's biggest hedge funds, Avenue Capital, said on Wednesday.

"Now is a phenomenal time to buy, assuming you think we're not in a Depression," said Marc Lasry, chairman and CEO of Avenue Capital, speaking at the 2008 Clinton Global Initiative meeting in Hong Kong.

"We're looking at valuations we think are extremely low. Unless the unthinkable happens, you'll be fine," he said, referring to the investment environment.

Lasry said the fund is holding around $7 billion in cash.

Six months ago, Avenue Capital, a $20.5 billion hedge fund firm that specialises in credit strategies, posted its largest monthly losses in six years.

(Reporting by Michael Flaherty; Editing by Anne Marie Roantree)