By betting on US Treasury bonds and yen, hedge fund Caxton Associates earned around $0.27 billion this month, far surpassing other macro funds and becoming one of the big winners in the recent global market turmoil. According to the HFR survey, global macro funds had an average return of only 0.2% as of Monday.

Caxton Associates' huge profits came in a turbulent month in the global market. Recently, many data released by the US are not ideal. Market concerns about the US economic recession are getting worse. At the same time, the market is worried that the Federal Reserve is cutting interest rates too slowly in dealing with signs of economic slowdown. On August 5, global stock markets experienced “Black Monday”. Major US technology stocks and the Japanese stock market were the worst affected by this sharp decline, and the “fear index” reached its highest level since the beginning of the COVID-19 pandemic.

Caxton Associates benefits from betting that short-term US Treasury bonds outperform long-term treasury bonds. Such “steep” deals have performed well in recent weeks, as investors have begun to expect the Federal Reserve to cut interest rates rapidly.

Caxton Associates is also profiting from bets on yen, which has strengthened sharply against the US dollar over the past month as the market quickly liquidated yen positions.

According to the data, in the first nine days of August, Caxton Associates's $4.5 billion macro fund personally managed by CEO Andrew Law made a profit of 3.9%, while another $8.5 billion global fund also received a 1.1% return.

The London-based company was founded in 1983 by American billionaire Bruce Kovner. Since this year, Caxton Associates macro funds have risen 9.9%, and global funds have risen 5.2%.

Kirkoswald Capital, run by Australian hedge fund star Greg Coffey, also earned hundreds of millions of dollars in this market chaos.