Tue, Sep 2, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds, speculators trim bearish wagers on Japanese yen

Thursday, February 27, 2014

Komfie Manalo, Opalesque Asia:

Hedge funds and speculators trimmed their bearish wagers on the Japanese yen as they lost confidence Japan central bank Governor Haruhiko Kuroda can keep depreciating the currency to boost growth and taper inflation.

According to Business Week, wagers on Japanese yen by hedge funds and speculators dropped by more than 60% since its peak in December. Since the start of 2014, the Japanese currency rose 3.6% compared to its developed-nation counterparts, the biggest gain recorded in Bloomberg Correlation-Weighted Indexes and a reversal from last year when it dropped the highest in 30 years.

Naoki Iwami, the chief investment officer at Tokyo-based hedge fund Whiz Partners Inc., was quoted by Business Week as saying, "Unless Japan comes up with specific measures to prove it will do whatever is necessary to exit deflation, it’s hard for hedge funds to jump on the weak-yen bandwagon. There’s a big difference in the momentum this year compared to 2013."

Kuroda is being criticized for missing an opportunity to raise BOJ’s 60tln yen ($586bn) to 70tln yen of monthly bond purchases, which could drive investors’ money offshore. Early this month Kuroda said he would not hesitate to further easy monetary policies to meet Japan’s 2% inflation target by 2015.

But Iwami is predicting the yen to hold on to 100 to ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius

  5. Big hedge funds tighten grip amid consolidation[more]

    From Asianinvestor.net: The hedge fund industry consolidated last year with the number of funds falling by around a tenth from 2012 but assets under management rising $248.8 billion to $2.6 trillion, finds a new report from research firm eVestment. Firms with more than $1 billion in hedge fund A