With investors betting that the European Central Bank has reached the end of its programme of interest rate hikes aimed at tackling inflation, hedge funds have upped their bearish wagers on the euro to the highest level seen in almost a year, according to a report by Bloomberg.
Investors are becoming increasingly convinced that the Bank of England is coming to the end of its programme of inflation-tackling interest rate rises, with hedge funds unwinding bets against the UK’s £2.5tn government bond market as a result, according to a report by FT.com.
Hedge funds have upped their bullish wagers on oil, betting that tightening supplies will prompt a resumption of the recent price rally following a pause last week, according to a report by Bloomberg.
Former Goldman Sachs co-chairman, ex-US senator, and governor of New Jersey, Jon Corzine, is to shutter the hedge fund he started after the collapse of MF Global Holdings, and return cash to investors, according to a report by Bloomberg.
CoinShares International, a European alternative asset manager specialising in digital assets, has launched a new hedge fund division, CoinShares Hedge Fund Solutions, and for the first time will be making its offerings available to qualified US investors via a range of private investment products.
Global financial services platform Marex has agreed to acquire Cowen’s legacy prime brokerage and outsourced trading business, with the transaction expected to complete by the end of the year, subject to regulatory approval.
Hedge funds saw a small decline in performance in August, with an overall weighted average return of -0.8%, marking the first negative month of 2023, according to new data from Citco, although almost half of funds (49.7%) administered by the firm recorded positive returns during the month.
Bill Ackman, the CEO of hedge fund Pershing Square Capital, has predicted further increases for 30-year US interest rates, while his fund remains short on bonds due to the prospect of inflation remaining at an elevated level, according to a report by Reuters.
Bond market participants are predicting that hedge funds are likely to become increasingly important buyers of US Treasuries, providing liquidity in the world’s largest bond market at a time of rising investor concerns over supply-demand dynamics, according to a report by Reuters.
James Jampel, the founder of hedge fund HITE Hedge Asset Management, has admitted that recent strong increases in the price of oil means his strategy of shorting fossil fuel stocks is no longer viable, according to a report by Bloomberg.