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Alphadyne Hedge Fund Losses Accelerate to 17% on October Slump

Alphadyne Hedge Fund Losses Accelerate to 17% on October Slump

Hedge fund Alphadyne Asset Management’s bad year is getting worse in a hurry.

The macro strategy fund, which had $11 billion of assets at the start of last month, is down another 6.5% in October, bringing losses for the year to 17%, according to investor documents seen by Bloomberg. Without a dramatic turnaround, the New York-based firm is facing the possibility of ending the year down for the first time since starting in 2006.

The firm joins peers such as Rokos Capital Management in losing money as bond markets whipsawed investors. Interest rate traders suffered heavy losses toward the end of last month as bond markets turned direction to factor in risks that central banks will raise interest rates faster than expected in response to spiraling inflation. 

Bets that the difference between the front-end of the Treasury yield curve and the long end would widen were hammered as a result. Though Alphadyne had reduced its position, it still held some bets that the Treasury curve would steepen. The fund’s October losses worsened last week from less than 2% through Oct. 22.

A spokesman for the firm declined to comment.

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