The head of trading at a £3 billion ($3.8 billion) US hedge fund sounds exasperated as he describes the experience of being right but losing money all the same, in this case trading US ‘bond proxy’ stocks.
“You’d have days where US yields would move higher, but US high-yielding stocks would move even higher. That just makes no sense,” he recalls, looking back at a period in which the firm “got the themes right” but failed to capture them in the instruments it traded.
Ordinarily these kind of s
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