One of the City’s leading hedge funds has reportedly reaped gains of about $270 million this month after trades made by the firm paid off amid volatility in financial markets.
Caxton Associates is said to have profited after betting on the Japanese yen and placing a so-called “steepener trade” by buying short-maturity Treasuries and selling longer-dated US government debt.
These positions proved lucrative during sharp movements in markets earlier this month, when the yen rallied and short-dated Treasuries outperformed on growing expectations that the US Federal Reserve would soon cut interest rates.
This resulted in Caxton’s $4.5 billion Macro fund, which is run by the firm’s boss, Andrew Law, gaining 3.9 per cent in the first nine days of August, according to the Financial