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China Shock Boon for This Hedge Fund That Bets on Volatility

  • Three of 36 South's strategies rose more than 10% in August
  • 36 South sees EM, commodity currencies to remain vulnerable
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This Hedge Fund Turned August Volatility Into a 10% Gain

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36 South Capital Advisors, a London-based volatility hedge fund, profited from China’s surprise devaluation when it triggered a global market rout that spurred losses in an index of its peers.

Three of 36 South’s strategies, which bet on rising price swings, gained more than 10 percent in August, based on initial estimates, Chief Investment Officer Jerry Haworth said in an interview. That would be the best monthly return in at least three years for its main fund, according to the manager. The HFRX Global Hedge Fund Index dropped 2.2 percent last month.