Wed, Oct 1, 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

Banner

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. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  3. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  4. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba

  5. Unconstrained bond funds: Where hedge fund strategies meet mutual funds[more]

    From CNBC.com: For all the talk and buzz around indexes, or passive investing, the next big thing for bond mutual fund investors may be strategies that are the exact opposite. The rapid growth of "unconstrained bond funds" has been thrust into investor spotlight given last Friday's stunning news tha