Lyxor: Hedge Funds Short the Sterling as BoE Engages in Race to the Bottom

When market price trends end or stall, momentum-based hedge fund strategies should be generally expected to experience difficulty, while long / short strategies in the U.S. benefited from sector rotations. Certain hedge fund strategies have run into what might be considered predictable trouble over the past week, particularly as trend reversals in key assets have occurred, a weekly research piece titled “Hedge Funds Short the Sterling as BoE Engages in Race to the Bottom” from Lyxor Asset Management shows. Lyxor: Trend reversals in key assets lead to predictable difficulty   After a strong start to the year, some managed futures…