Thursday, December 13, 2012

Some Hedge Funds Dump their Bets Against France




Forget that knee-jerk reaction folks…according to InsiderMonkey some hedge funds dump their bets against France (III) Some hedge funds are calling it quits on one of their biggest trades of the year - shorting French government bonds. Earlier this year many in London's hedge fund industry were lining up bets against the euro zone's second-largest economy, reckoning the May election of President Francois Hollande, a socialist, would accelerate the country's deteriorating economic outlook. But the trade has not worked out as planned. France's long-term borrowing costs fell to a record low at auction last week as investors sought out safe havens. So some funds are now cutting their losses or changing tactics, for instance betting against French equities instead….

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