Monday, 30 March 2015
Last updated 2 days ago
Feb 14 2013 | 12:55pm ET
Twenty-one years ago, George Soros "broke the pound" and earned a cool $1 billion betting against the British currency. He's done it again this year, with a big bet against the Japanese yen.
The yen has lost almost 20% against the dollar over the past four months. And Soros has turned a nearly $1 billion profit, shorting the currency since November.
And he's not alone: Some of the biggest hedge fund managers in the U.S. have turned tidy profits betting against the yen, including Greenlight Capital, Hayman Capital Management and Third Point, The Wall Street Journal reports.
Unlike when Soros sacked the pound in 1992, Japan is complicit in its currency's fall. Newly-elected Prime Minister Shinzo Abe pledged to weaken the yen during his election campaign, leading to what is now known as the "Abe trade."
Or, as someone close to Soros Fund Management told the Journal, "a bet on Abe-nomics."
It's unclear whether the bet has much longer to run. Abe has been criticized for starting a currency war by other members of the Group of Seven, including Germany and Japan, and he has now pledged some quantitative easing.
But Greenlight Capital's David Einhorn said the yen may still have farther to fall.
"We put the trades on about three years ago," he said, "and the trade wasn't fun for the first two years and a number of months."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…