Key Takeaways From a Brutal Year for Hedge Funds
ByLast year was brutal for many hedge funds. Unexpected macro shifts and volatility left some managers with losses not seen since the financial crisis. Other traders were forced to close shop after clients demanded their money back. To those still standing, take heed of these lessons from what some might call the year to forget.
1. Central Banks Can Do Some Wacky Things
The Swiss National Bank and the People’s Bank of China both made unexpected moves last year that threw off hedge funds. The January 2015 surprise decision by the SNB to unpeg the franc from the euro sent the currency surging and Swiss stocks tumbling.Comac Capital returned outside money to investors after suffering losses and Everest Capital’s Global Fund shut down as a result of the decision. The PBOC’s devaluation of the yuan in August further rattled global markets…
Key Takeaways From a Brutal Year for Hedge Funds
