Hedge fund Caxton makes $270mn in market turmoil

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Bets on US Treasuries and yen put London-based firm among big winners from early August volatility

Hedge fund Caxton Associates has made gains of about $270mn this month, as bets on US government debt and the Japanese yen made it one of the big winners from the recent turmoil in global markets. The London-based firm made 3.9 per cent in its $4.5bn Macro fund, which is personally managed by chief executive Andrew Law, in the first nine days of August, according to numbers sent to investors and seen by the Financial Times. It also made a gain of 1.1 per cent in its $8.

These so-called “steepener” trades have performed well in recent weeks as investors have started to price in rapid rate cuts by the Fed. The firm also profited from a bet on the yen, which rallied strongly against the dollar over the past month as investors who had borrowed the Japanese currency to invest in higher yielding assets quickly unwound those positions. The gains leave Caxton Macro up 9.

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