Key Takeaways
- • Selling bonds short, a trade that had not worked consistently for decades, has helped fuel a 38 per cent gain this year for the AlphaSimplex Managed Futures Strategy Fund, according to Bloomberg via the Australian Financial Review.
- • The article's central argument is that bond markets can generate returns for investors who take short positions rather than only holding bonds for income.
- • The source article is a brief excerpt dated September 11, 2022, and does not provide full details on position sizing, instruments, or the fund's broader performance.
Summary
A Bloomberg report republished by the Australian Financial Review on September 11, 2022 argues that investors can profit from bonds by shorting them. The article highlights the AlphaSimplex Managed Futures Strategy Fund, which has gained 38 per cent so far in 2022, with short bond positions cited as a contributor to that performance.
The piece notes that betting against bonds has not been a consistently profitable trade for decades, which frames the 2022 result as an exception driven by the rate environment of that year. Rising yields reduce bond prices, so a short position benefits when rates climb.
The excerpt available for this summary is limited, and it does not detail the fund's exposure, the specific instruments used, or the risks involved. Readers seeking the full analysis should consult the original Bloomberg article.
The piece notes that betting against bonds has not been a consistently profitable trade for decades, which frames the 2022 result as an exception driven by the rate environment of that year. Rising yields reduce bond prices, so a short position benefits when rates climb.
The excerpt available for this summary is limited, and it does not detail the fund's exposure, the specific instruments used, or the risks involved. Readers seeking the full analysis should consult the original Bloomberg article.
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