Are investors betting on Kamala or Donald? Neither
Hedge funds and others shun election-based trades and rely on existing hedges to guard against surprise market moves
When Krishna Kumar went to bed on the eve of the 2016 US presidential election, markets were expecting bonds to sell off and for the dollar and equities to rise on the back of a Clinton win. “Those were the three positions I had when I went to sleep,” recalls the chief investment officer at Goose Hollow Capital. “When I got up the next morning, my P&L was up a lot. I said, ‘Wow, Hillary’s won. I’ve got this right’.” Only then did Kumar realise Clinton had lost.
Elsewhere, Jane Street called
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