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24-05-2017, 03:29 PM
Hedge Fund Plummets 62% After Betting Against the Chinese Economy
by Melissa Karsh and Hema Parmar
May 23, 2017, 11:00 PM GMT+8
A hedge fund at Emerging Sovereign Group that has bet against the Chinese economy sunk about 62 percent this year through April.
The Nexus fund dropped 8.2 percent last month, according to an email to investors seen by Bloomberg News. The April results mark at least the third consecutive month of negative returns for the fund.
China bears have suffered as economic growth accelerated in the first quarter and officials have been guiding the yuan higher against the dollar in a move that’s caught market watchers by surprise. The Nexus fund gained 35 percent in 2015, profiting from moves by China’s central bank to devalue the yuan by the most since 1994. But the fund has underpeformed since 2016 when it dropped 15.5 percent, Bloomberg has reported.
ESG is run by co-founders Kevin Kenny, Mete Tuncel and Jason Kirschner, who bought out Carlyle Group LP’s 55 percent stake and took full control of the firm in October. Most of the assets at ESG, which managed $3.5 billion as of December, are in two of its other funds.
More details in https://www.bloomberg.com/news/articles/...ol-jumps-9
by Melissa Karsh and Hema Parmar
May 23, 2017, 11:00 PM GMT+8
A hedge fund at Emerging Sovereign Group that has bet against the Chinese economy sunk about 62 percent this year through April.
The Nexus fund dropped 8.2 percent last month, according to an email to investors seen by Bloomberg News. The April results mark at least the third consecutive month of negative returns for the fund.
China bears have suffered as economic growth accelerated in the first quarter and officials have been guiding the yuan higher against the dollar in a move that’s caught market watchers by surprise. The Nexus fund gained 35 percent in 2015, profiting from moves by China’s central bank to devalue the yuan by the most since 1994. But the fund has underpeformed since 2016 when it dropped 15.5 percent, Bloomberg has reported.
ESG is run by co-founders Kevin Kenny, Mete Tuncel and Jason Kirschner, who bought out Carlyle Group LP’s 55 percent stake and took full control of the firm in October. Most of the assets at ESG, which managed $3.5 billion as of December, are in two of its other funds.
More details in https://www.bloomberg.com/news/articles/...ol-jumps-9
Specuvestor: Asset - Business - Structure.