Japanese Banks Latest Big Short for Top Hedge Fund on BOJ

  • Horseman says Shizuoka Bank, San-In Godo good short targets
  • Fund has returned 14% this year versus Topix’s 15% decline

Japanese Banks May Be Latest Big Short

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Japanese banks are the latest big short for a top-ranked hedge fund, thanks to the central bank’s negative interest rate policy.

Horseman Capital Management’s hedge fund run by Shannon McConaghy is the best of 56 Japan-focused long-short equity strategies tracked by Eurekahedge Pte, after the manager started shorting regional banks at the end of last year. McConaghy’s fund returned 14 percent through August, compared with a 15 percent decline in the benchmark Topix index through Tuesday.