So who benefited from the so-called Trump trade ?

Not many, says JP Morgan after a survey of its clients. Most investors were not quick enough to respond to the surprising U.S. presidential race in which Republican Donald Trump rode to victory, and many others may have been less than convinced about the consequences of the controversial billionaire’s ascent to the White House.

Hedge Funds Established Winning “Trump Trade” Before …

Q3 2016 Hedge Fund Letters

Trump Trade

“The majority of clients have been either too slow or too reluctant to jump into the Trump trade,” the bank said. The responses stemmed “from a general belief that markets are getting ahead of themselves and from a general dismissal of the idea that Trump represents a game-changer for markets.”

Currrency hedge funds made gains despite the poor industry performance

Currency hedge funds made the most gains, 2.4%, since the Nov. 8 election, implying an unusually high 0.8 beta to the U.S. dollar index. But, overall, hedge funds were disappointing, and no investor type beat either the S&P500’s 3.1% gain or the DXY’s 3.3% rise.

Within hedge funds, currency and equity long/short funds were the notable gainers while macro hedge funds, CTAs and risk parity funds suffered declines, it added. Risk parity funds were the worst, losing 2.0% since the election followed, as equity gains were not enough to offset the sharp selloff in bonds, which typically have exposed by four times as much as equities. Discretionary macro lost 1% (both returns till Nov 21). CTAs were flat.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Please login to view the rest of this article - Not subscribed? Get our adfree exclusive content for only a few dollars a month.

It also helps us fund our operations so think of it as supporting quality journalism.