FOR some of the world’s largest hedge funds, private equity ended up making – or saving – the year, and they’re betting that will be the case again in 2022. Deep-pocketed investors have been flocking to private companies because stakes can be acquired relatively cheaply. Treasuries tumultOctober was the most painful month for the industry’s mega macro funds after unexpected moves in Treasury markets pummelled portfolios. Firms including Alphadyne Asset Management, Element Capital Management and Rokos Capital Management are still digging their way out from losses. Many such macro funds had so-called steepener bets on yield curves in the US and Europe, wagering that interest rates would remain at or near historic lows.

Source: The Star January 01, 2022 12:50 UTC