News Digest: Macro hedge funds reap windfall gains from market volatility
August 1, 2022
Persisting volatility in bond and commodities markets this year, amid soaring inflation, has enabled several global macro hedge funds to generate their highest returns in years through large directional trades, it has emerged.
Successful macro trades in 2022 have included a bet on the continuous narrowing of the gap between two-year and 10-year U.S. bond yields, as well as large swings in commodities prices, and a spike in the yield on the two-year Treasury bond, industry insiders reveal.
Major winners include Bridgewater Pure Alpha, which is up 21.5% for the first seven months of the year, and Caxton’s flagship vehicle that has gained 24.9%, sources said.