Japan Hedge Fund Buys Options, CDS Indices In Advanced Of U.S. Rating Cut

Aug 8 2011 | 12:32pm ET

R-SQUARED Asset Management may focus on Japan, but the US$220 million hedge fund still girded itself for Standard & Poor's downgrade of U.S. sovereign debt.

Tokyo-based R-SQUARED sold cash bonds and bought up put options and credit default swap indices prior to the announcement of the downgrade on Friday night, Bloomberg News reports. The moves were designed to position the fund for volatility in the post-downgrade markets.

"We're expecting volatility to remain high going forward, so we will be looking for investment opportunities in market dislocation," fund manager Tan Maruyama said.

R-SQUARED has returned 11% this year.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note