Said Haidar’s macro hedge fund, the Haidar Jupiter fund, has endured yet another challenging month, as it grappled with a significant 15.7% decline in August. This loss extends the fund’s unprecedented streak of trading setbacks, marking the worst phase of losses it has faced in its over two-decade-long history.
According to investor documents obtained by Bloomberg, the Haidar Jupiter fund has now plummeted by a staggering 48% since the beginning of this year. As of July’s end, the fund was managing assets totaling $1.6 billion.
A spokesperson representing the New York-based investment firm has chosen not to comment on these developments.
Haidar’s hedge fund is just one among a series of macro specialists experiencing a tumultuous year, a reflection of traders’ ongoing efforts to recalibrate their positions amidst uncertainty surrounding the direction of the economy and interest rates.
While the specific catalyst behind August’s losses remains unclear, it has been reported that the fund’s primary vulnerability coming into the month was tied to the fixed-income market, as outlined in another letter. These losses come on the heels of a 14% decline in July, which Haidar attributed to the outperformance of front-end bonds on a global scale.
Said Haidar communicated with clients, stating, “As US growth continues to come in strong, we anticipate that the Fed may be slower to cut rates than previously anticipated. Should Fed officials push back on expectations of near-term rate cuts, the front-end of the treasury curve will likely continue to re-steepen, which should also bode favorably for US dollar outperformance.”
Haidar, who established his eponymous firm in 1997, specializes in placing bets on macroeconomic shifts around the world. In a hedge fund industry where many firms seek to deliver steady returns to cater to risk-averse clients such as pensions, Haidar’s strategy stands out for its high-octane nature, with double-digit gains or losses occurring frequently.
Said Haidar’s leveraged bets had made him one of the most closely-watched macro hedge fund managers, as evidenced by a remarkable 193% surge in performance last year. However, the fund has faced turbulent times recently, with losses recorded in nine out of the last eleven months. Over this period, the fund has experienced a rollercoaster of monthly results, ranging from a 32% decline in March to a 27% gain in June.
