Risk Hedges Made BTG Pactual Macro Fund Happy In January Despite Loss

In December a hedge fund manager knee deep into “credit and securitized products” – read: sometimes illiquid non-cleared exposure — noted in a letter it was investing among a diverse basket of assets that needed to be properly hedged. In January, the risk management plan was surprising in how accurate and important those risk management assets became. In fact, many of the risk management plays ended “in the money,” said an investor letter reviewed by ValueWalk from the $4.2 billion BTG Pactual Global Emerging Markets and Macro (GEMM) fund, which is closed to new investors and whose future remains uncertain….