Och-Ziff, the world’s fifth-largest hedge fund, took out more than $12bn of options on US equities in the first quarter in an apparent bet to profit from a rise in market volatility, according to regulatory filings.
The move comes as many of the world’s most sophisticated money managers look to dial down risk as expectations for a market correction – or a period of turbulence over the summer – take hold.
Large hedge funds, most notably the $36bn Paulson & Co, were hit by rocky markets in May and the beginning of June and some have begun to scale back their bullish positions.
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