Dymon Asia Capital (Singapore)’s currency hedge fund gained an estimated 22% in the first 25 days of November as bets on weaker Asian currencies paid off, with some investors making triple that gain by putting money into a highly leveraged version.
Bloomberg News reports that the profits extended returns made by the $714m Dymon Asia Currency Value Fund this year to nearly 46%, said Gerald Chan, the firm’s Singapore-based head of distribution, citing estimates. The money manager’s $3.4bn flagship Dymon Asia Macro Fund made an estimated 7.8% during the same period in November, taking this year’s return to 12%, he said.
Dymon joins macro hedge-fund peers such as Brevan Howard Asset Management and Rubicon Fund Management in turning a political shock into profit. Brevan Howard’s $12.7bn main hedge fund gained 5.6% in the first 18 days of November, erasing earlier losses this year, and Rubicon surged almost 20% in the same period to return to profit.
The November returns for Dymon came primarily thanks to bearish bets on various Asian currencies, including the Japanese yen, against the greenback, said Chan. The dollar has surged for its biggest monthly gain versus the yen since 1995, on the prospect of President-elect Donald Trump’s proposed fiscal stimulus fuelling inflation. The dollar gained 9.1% against the Japanese currency last month.
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