Hedge Funds Currencies Trading
Hedge Funds Hurting From Volatile Currencies
So-called macroeconomics funds, which make wagers on currencies and global economic events, were down 0.8% on average in the year to May 19, according to hedge-fund research firm HFR, with a 3.1% loss this month. And "systematic" macro funds that use computer programs to jump on market trends have given up 4.5% since Dec. 31. By contrast, hedge funds in general have returned 1.7%. Investors who bought U.S. blue-chip stocks instead of hedge funds have gained about 7%.
The list of losers reads like a Who's Who of the hedge fund world: A roughly $2.5 billion fund run by Geraldine Sundstrom at London's Brevan Howard Asset Management LLP, one of Europe's biggest hedge-fund firms; an $8 billion fund run by hedge-fund giant Tudor Investment Corp.; Caxton Associates' $5 billion Global Investment Ltd. fund; and New York-based Moore Capital Management's $7.5 billion Moore Global Investors fund, according to a report by HSBC Private Bank obtained by The Wall Street Journal.
The lackluster performance comes at a testing time for global financial markets. Traders are debating whether slower global growth and Europe's debt problems will scupper a two-year market boom. That uncertainty is making currencies more volatile and preventing clear trends and strategies from emerging. Source