It is challenged by stock bet losses following the Fed’s proposed monetary tightening.
The world’s best performing macro fund from Singapore, PruLev Global Macro Fund, gave up nearly a third of its 52% gain in February due to volatility issues. According to preliminary data, the fund lost 16% mainly from stock bets. For comparison, the change in its Class-B shares was significantly higher compared to the 0.9% drop in the Eurekahedge Macro Hedge Fund Index last month.
“Despite the fund’s preparation with de-risking for the inevitable correction in the markets, the technical behaviour of the markets proved to be highly unexpected at the beginning of February,” PruLev said in its letter. “As the fund invests based on fundamentals, it was negatively affected in this occasion.”
Markets around the world were shocked by New Fed Chairman Jerome Powell suggesting the central bank could accelerate the pace of monetary tightening this year.
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