Hedge Fund News Wrap: Week Ending 01/16/15

(Reuters) – Currency speculators and global macro hedge funds with large short positions in the Swiss franc are staring massive losses in the face after the Swiss National Bank shocked markets on Thursday by removing a three-year-old cap on the currency.

The move sent the safe-haven franc soaring against the euro and the U.S. dollar at a time when more than $3.5 billion was betting on more franc weakness, the largest such position in more than a year and a half.

The damage from the Swiss franc’s sharp moves comes as a blow for macro hedge fund managers nursing wounds from nearly four years of mediocre performance. Only days ago, the SNB termed the 1.20 francs per euro cap the cornerstone of its monetary policy.

Read the entire article at Reuters
More coverage: Bloomberg News and Financial Times

Hedge Funds Turn to Denmark after Swiss Move Jolts Markets

(Bloomberg News) – As investors and traders work out how to adjust their portfolios after the Swiss National Bank jettisoned its euro cap yesterday, interest is turning to another country with a euro peg.

Danske Bank A/S says it has received several requests from hedge funds and offshore investors seeking to profit from the new climate through bets on Denmark. Though it’s a lost cause to speculate the Danes may abandon their euro peg, according to Danske, the bank is advising clients to gird for rate cuts into unprecedented negative territory.

“We’re experiencing an increase in interest from foreign investors, hedge funds, looking into whether there’s a play on Danish rate cuts, which we think there is,” Arne Lohmann Rasmussen, the Copenhagen-based head of fixed-income research at Denmark’s biggest bank, said today by phone.

Read the entire article at Bloomberg News
More coverage: Wall Street Journal and The Local

Hedge Fund Capital Flows Slip 3% in January

(FINalternatives) – Hedge fund investors withdrew more cash than they invested in January, according to the SS&C GlobeOp Capital Movement Index.

The index, which tracks monthly hedge fund subscriptions against redemptions, slipped nearly 3%, representing the sharpest monthly drop in a year. In December, inflows increased by 0.39%.

According to statements by SS&C GlobeOp Capital, data represents 10% of assets invested in the global hedge fund sector.

Read the entire article at FINaltnernatives
More coverage: Reuters and Asset Servicing Times