Key Square Capital Management, a macro hedge fund firm founded by ex-Soros Fund Management investment chief Scott Bessent, has posted a 30% gain this year up to 27 December, helped by a winning bet on the Japanese yen, according to a report by Bloomberg.
Key Square Capital Management, a macro hedge fund firm founded by ex-Soros Fund Management investment chief Scott Bessent, has posted a 30% gain this year up to 27 December, helped by a winning bet on the Japanese yen, according to a report by Bloomberg.
And the 60-year-old has told clients he’s betting on a rising yen, gold and oil in 2023.
In a letter sent to Key Square Investors on 20 December, Bessent described the Bank of Japan’s surprise decision to widen the yield curve control band for 10-year government bonds as a “seminal moment for global monetary policy and financial market liquidity”. And he believes the decision is just the start of an initiative to end more than a decade of aggressive easing.
The report cites an unnamed investor as revealing that Bessent made about 300 basis points in returns on the yen bet since the BOJ’s 19 December move.
The fund also chalked up gains earlier this year from bets on natural resources stocks, and short bets on technology and other growth shares, as well as energy prices.
