LGT Hedge Fund Quits Abenomics Bet as Reform Momentum Stalls
- Closes strategy on waning enthusiasm for Abenomics, poor data
- Sees more monetary easing as key to defeating deflation
The Topix index has slumped about 25 percent from a peak in August after doubling earlier in Abe’s term.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
LGT Capital Partners’ hedge fund team has retired its “Japan’s Resurgence” strategy on fading enthusiasm for the policies of Prime Minister Shinzo Abe.
The hedge fund group at the Pfaeffikon, Switzerland-based $50 billion asset manager is locking in gains on declining optimism about Abe’s attempts to spur inflation and disappointing economic data, according to a note by Mikio Kumada and Boris Pavlu published Wednesday. The firm also lowered its stance on Japanese equities to neutral from overweight and increased its allocation to the yen.