The short selling of sterling and UK bonds at the end of September was misleadingly attributed to a judgement on the mini Budget of the new UK government.
In reality it was just a last push on existing and extremely profitable short sales by momentum macro hedge funds (broadly known as CTAs), who have been short most fixed income and most currencies against the $ for months now.
They have of course also been short equities and as October starts they are certainly taking profits and pausing to see if they can ‘ go again’ in Q4, or perhaps even move onto the long side.
Get started on the Smartkarma Research Network with a complimentary Preview Pass to:
Unlock all research summaries
Follow top, independent analysts
Receive personalised alerts and emails
Access Briefings, Analytics, and Events
Upgrade anytime to our paid plans for full-length research, real-time analyst discussions, and more.
Join a thriving community of 45,000+ investors, including the top global asset managers managing over $13trn in assets.