Tue, Jul 29, 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. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass