Levinson shutters hedge fund after bond bets bomb
Graticule Asia, a macro hedge fund founded by veteran macro trader Adam Levinson is shutting down after being hit by losses following the demise of Silicon Valley Bank (SVB) and the ongoing bond market volatility, according to a report by Bloomberg.
Unnamed Bloomberg sources have revealed that the fund is down by more than 25% so far this year with most of that loss coming in the days immediately after SVB's sudden collapse. Years of gains were wiped out after Levinson's bets tied to front-end rates imploded, according to the sources.
Singapore-based Graticule, which was spun out of Fortress Investment Group in 2015 and, as of last year, was managing about $3 billion, is the first known high-profile hedge fund to fall foul of wild swings in the bond markets as traders pulled bets on further central bank rate hikes following SVB's collapse.