Sterling and gilts are beginning to attract the attention of a number of hedge funds following their market mauling sparked by the UK government’s mini-budget of unfunded tax cuts, according to a report by Bloomberg.
Sterling and gilts are beginning to attract the attention of a number of hedge funds following their market mauling sparked by the UK government’s mini-budget of unfunded tax cuts, according to a report by Bloomberg.
New York-based Great Hill Capital says it can see an opportunity to go long sterling, while Blue Edge Advisors Pte says it sees positives in longer-maturity gilts as global growth slows.
Sterling slumped to an all-time low against the US dollar of $1.035 before recovering about 10%, while 10-year gilt yields have varied between 1.71% and 4.64% over the last three months.
One of Singapore-based Vulpes Investments Management’s funds reportedly bought sterling at its record low, and while the fund took some profit following the currency’s rebound to $1.14, the firm remains long on the pound.
