New hedge fund launches and liquidations were steady into the fourth quarter as managers positioned for the peak of generational inflation and the conclusion of aggressive interest rate increases which have dominated the past two years.

A report by The Times notes that the online fashion retailers Boohoo and Asos, as well as Kingfisher, the owner of B&Q, J Sainsbury and the online gift business Moonpig are among the top ten most shorted companies, according to regulatory filings with the Financial Conduct Authority.

The US dollar continues its downward trajectory, hitting a multi-week low, influenced by market anticipation of an early Federal Reserve rate cut, possibly in March. This sentiment is reinforced by falling treasury yields which add to the pressure on the dollar.

Man Group is planning on more acquisitions and hiring new team members, as part of a push towards private credit, according to a report by Bloomberg. 

A measure of the cost of borrowing short-term funds backed by U.S. Treasuries spiked this week to its highest since 2019, a move some market participants attributed to dealers closing their balance sheets for the year, according to a report by Reuters. 

Genoa Capital, a Brazilian hedge fund with $3.8bn in assets under management, says it’s time to bet on the nation’s currency and stocks as the central bank’s cautious approach to interest rate cuts diminishes the appeal of local rates, according to a report by Bloomberg.