Economics
FX Hedge Funds Trampled by Bad Volatility in Dreadful Start to 2018
- After disastrous year, sector struggles to gain traction
- Currency traders fail to translate price swings into profits
Columbia's Savoldelli Says Hedge Funds Still Disappointing Even With Volatility
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After suffering unprecedented losses last year, currency-focused hedge funds were hoping a bit of market turbulence would help them get back on track in 2018. Things could hardly have gone worse.
A BarclayHedge gauge of foreign-exchange trading programs slumped 2.5 percent over the first three months of 2018, extending last year’s record 11 percent plunge. Even FX stalwarts -- from Warren Naphtal’s P/E Investments to Bill Lipschutz’s Hathersage Capital Management -- haven’t been immune, sliding along with peers after years of dominant returns.