Hedge funds reportedly built one of their biggest bearish bets against the Japanese yen in years, lining up around 85,000 net short contracts as pressure on the currency grows. As yen stress picked up, Bitcoin slipped below $87,000 in early December, with around $527 million in long positions wiped out in just 24 hours. All of this sits inside a bigger macro story. The rising Japanese bond yields, shifting central bank policies, and a huge yen “carry trade” that now spills directly into our crypto portfo ...

Hedge funds saw strong performance and inflows through November 2025. But many hedge fund strategies now show high correlation to the S&P 500 index. AI-driven stock trends and equity exposure raise risks of sharp losses in a sell-off. Hedge funds entered 2025 with momentum and optimism. After a banner year in 2024, Goldman Sachs' February outlook report found "buoyant sentiment" among investors following "unequivocally one of the best years for the hedge fund industry in recent memory." More than ...

The CEO of hedge fund Pershing Square Capital Management, billionaire Bill Ackman, publicly rescinded his support for Rep. Ro Khanna (D-Calif.) over the weekend, accusing the congressman of “losing his way” for defending a controversial new California wealth tax proposal.Accusation Of Flip-FlopIn a post on X, Ackman highlighted what he sees as a policy contradiction by the congressman. He shared a 2024 CNBC clip in which Khanna argued against a “blanket tax on unrealized gains,” explaining why he believed i ...

Core Insights - Hedge funds achieved a gain of 10.8% through November 2025, indicating a strong performance that is set to surpass 2024 [1] - Small hedge funds, particularly those managing less than $500 million, outperformed larger funds, with the smallest funds (under $100 million) returning 14.6% [2][3] - The strong stock market, with the S&P 500 up 18% and the Nasdaq up 21%, provided a favorable environment for long-short equity strategies favored by smaller funds [4] Performance Analysis - Small hedge funds led the performance in 2025, benefiting from a robust stock market that favored their investment strategies [3][4] - Smaller funds typically utilize long-short equity strategies, which require less capital and infrastructure, allowing for greater flexibility in trading [5] - The performance of smaller funds is often correlated with equity market conditions, as they tend to outperform during market upswings [6] Market Conditions - The stock market's strong performance in 2025 was a significant tailwind for hedge funds, particularly benefiting smaller firms [4] - The ability of smaller funds to trade nimbly and take advantage of stock selection was enhanced by the market conditions, with stocks near all-time highs [6]

Core Insights - The use of artificial intelligence has been integral to Bridgewater Associates' investment strategy long before the current AI boom, with founder Ray Dalio emphasizing its role in processing complex information quickly [1][2] - Dalio began integrating early AI into investment decision-making 35-40 years ago, translating his principles into equations that allowed machines to analyze large data volumes while adhering to his decision-making framework [2][3] Group 1 - Early AI systems were designed to reflect Dalio's market evaluation methods, enabling technology to manage vast data while he concentrated on judgment and strategy [3][4] - The investment decision-making framework at Bridgewater evolved to rely on clearly defined principles, reducing emotional bias and facilitating repeatable processes as the firm expanded [4][5] - Dalio formalized these principles into tools for broader use, creating a digital "coach" for colleagues to seek guidance based on his decision rules, aiming for consistency, speed, and clarity [5][6] Group 2 - Although early AI systems were limited compared to today's technology, they established a foundation for future advancements, with recent developments in large language models enhancing the process's efficiency and utility [6]

Core Insights - The individual has extensive experience in the investment banking sector, particularly as a "professional bear" for approximately 30 years, indicating a focus on short-selling strategies and market downturns [1] - The career began in late 1989 with a short-biased hedge fund, highlighting a significant entry point into the industry during a bull market [1] - The individual has held various roles, including trader, analyst, and portfolio manager, which contributed to a comprehensive understanding of market dynamics [1] Career Highlights - The individual worked at notable firms such as Fleckenstein Capital and East Shore Partners, showcasing a diverse professional background [1] - A significant tenure at PrudentBear lasted 16 years, where the individual served as a strategist and portfolio manager, indicating a long-term commitment to bearish investment strategies [1] - Early career experiences included a treasury analyst position at Toyota during critical economic periods, which fostered a passion for macroeconomic analysis [1] Influences and Philosophy - The individual was influenced by Dr. Richebacher's writings on Austrian economics, which shaped a lifelong interest in economics and macro analysis [1] - The desire to highlight unrecognized developments in finance and policymaking led to the creation of the Credit Bubble Bulletin, emphasizing the importance of contemporaneous analysis [1] - The individual draws parallels between current economic conditions and historical events, suggesting that understanding the current global Bubble period is crucial for future economic insights [1]

Core Insights - Commodity traders faced significant challenges in 2025, trailing behind most other asset classes with an average hedge fund return of only 2.2% compared to the overall industry average of 10.7% [3] - The volatility in oil prices due to Middle East conflicts and fluctuating crop prices from tariff policies has contributed to the struggles in the commodities market [2][3] - Despite the difficulties, there is a growing interest in commodities trading as firms seek diversification from traditional asset classes [9] Industry Trends - The demand for commodities trading is increasing, with firms like Citadel and Millennium continuing to expand their operations in this area despite recent underperformance [4][5] - The shift towards physical commodities is seen as a major diversification strategy for 2026, as larger firms and startups look for alpha that quantitative approaches cannot easily access [6][7] - Notable hedge fund managers, including Steve Cohen of Point72, are considering entering the commodities market, indicating a potential shift in investment strategies [8]

Alan Howard, a co-founder of Brevan Howard, has joined a growing number of billionaires to have departed the UK since Labour came to power - Hollie Adams/Bloomberg Billionaire Tory donor Alan Howard has quit Britain for Switzerland, becoming the latest entrepreneur to leave in the wake of Rachel Reeves’s tax raid. The hedge fund tycoon, who founded Brevan Howard, shifted his residency to the low-tax haven earlier this year, according to filings seen by Bloomberg. He joins a growing number of billionair ...

Ray Dalio's Bridgewater Associates is one of the top hedge funds today. It has over $100 billion in assets, and the fund has made solid moves despite market uncertainties. ...

Bobby Jain's firm was one of the industry's biggest launches ever and certainly one of the buzziest. When Jain Global started trading in mid-2024, it immediately began trading different asset classes around the world and competing with industry stalwarts for talent and capital.It's a significant departure from the insular style hedge funds typically operate with, but it has not slowed the firm's performance. The flagship hedge is up more than 13% through November, a person familiar with the manager's return ...