A $200 Million Hedge-Fund Trade in Your Bond ETF Is Normal Now
John Burbank, founder and chief investment officer of Passport Management LLC.
Photographer: Jacob Kepler/BloombergThis article is for subscribers only.
Don’t be surprised if you see a huge chunk of cash simply evaporate one day from your exchange-traded bond fund. There’s a good chance it’s just a hedge fund cashing in on a bet.
An example of this can be found in BlackRock Inc.’s $5.1 billion long-term U.S. Treasuries ETF, which saw the greatest volume of withdrawals this year among similar funds. Among investors yanking cash was Passport Capital, the $4 billion hedge-fund firm run by John Burbank.