Hedge funds escape Japan rout with minor losses

Cracks appearing in Japan trade?

Last week's sharp drop in Japanese stocks came as a surprise to many global macro hedge funds, which have been piling into the market since the end of last year. Yet most hedge funds appear to have weathered the reversal in the Nikkei 225 share index, which fell 7.3% on Thursday, May 23.

Early data from Hedge Fund Research shows global macro and managed futures funds lost an average of around 0.6% on the day. Meanwhile, managed futures funds tracked by AlphaMetrix, a Chicago-based hedge fund pla