Hedge funds focused on global macro approach started off August on a negative note, as most of the large funds recorded declines in the first week of the month, according to returns from HSBC’s Hedge Weekly.
The $2 billion Fortress Macro Fund, which was able to steer clear of losses through the major part of this year, took a -0.54% decline through August 9th whereas Fortress Asia Fund was down 0.45% in the same period. Both funds are up 9% and 11% for the year respectively.
Brevan Howard, Paul Tudor post losses in August
Brevan Howard, which has been losing across its major funds, lost further in the Investment Fund II Macro FX—the fund was down 0.9% in the first week of August, plunging YTD decline to -4%. Brevan Howard’s traders are leaving the firm amid losses, and the lead trader of the fund in question was reportedly dismissed by the fund a couple of months ago. Paul Tudor’s macro funds, which have done better than most in the year, could not shake off the unfavorable macro winds in August. The $7.6 billion Tudor B.V.I Global was down 0.6% through August 9th, the fund is up 8.3% YTD. The $1.1 billion Tudor Discretionary fund was also down 1.06% to August 9th.
Yen and Aussie gained up against USD
Some of the moves that did not go in favor of crowded macro positions was the strengthening of yen against the U.S. dollar in the earlier part of the month, as yen rallied 2.97% in the first nine days of August. Another concentrated trade that was punished was the appreciation in AUD, which spiked upwards in response to encouraging Chinese trade data. The rise came despite the 25 bps cut by Reserve Bank of Australia which took interest rates to historical lows. AUD accumulated a 3% gain against USD to Aug 9th. Yields on U.S. treasuries continued to increase in this month and outflows from emerging market assets also continued to take outflows.
Caxton, Eclectica, Rubicon also down
Caxton Global Investment, with $4.6 billion under management, was down 0.99% to August 12th but is still up 15.3% for the year. Rob Citrone’s Discovey Capital lost in July when most hedge funds managed to post a healthy return. Discovery Global Macro was down 0.62% whereas Discovery Global Opportunities was down 1.2% in July, however the funds were up 16.7% and 15.4% respectively YTD.
Hugh Hendry’s Eclectica Fund was flat in the first ten days of August and is down -0.5% for the year. Kenneth Tropin’s Graham Global Investment Fund II, AUM $4.1 billion, was down 2.27% through August 13, wiping out the return for 2013 to a mere +0.56%. The last few months have plunged the gains of Rubicon Global Fund which was up 25% in the first half of the year, making it one of the best performers. Rubicon was down 1.13% to August 9 and is up 14.8% for the year after a very troubled July.
Patrick McMahon’s MKP opportunity Offshore was down 0.3% to August 9. The fund manages $3.1 billion and is up 3.04% for the year.