News Digest: Major Hedge Funds capitalise on post-election turbulence
December 5, 2024
News Digest:
Hedge funds capitalized on market volatility following Donald Trump’s re-election, positioning the industry for its best annual performance in four years, Hedgeweek reported, citing a Bloomberg report.
Major firms like Balyasny Asset Management and Schonfeld Strategic Advisors profited from “Trump trades,” leveraging sharp moves in U.S. stocks, Treasury bonds, the dollar, and bitcoin. Investors anticipate Trump’s policies—emphasizing tax cuts, deregulation, and tariffs—will drive economic growth, corporate profits, and inflation.
Balyasny gained 3.9% in November, boosting its 2024 returns to 11.6%, while Schonfeld’s Fundamental Equity fund and Citadel’s Tactical Trading fund achieved year-to-date gains of 18.6% and 20%, respectively. Macro trading and equity bets were key drivers of these gains.