(Bloomberg) — Japan-focused hedge funds erased their losses from Monday’s trading turmoil, posting their best ever single day performance, according to Goldman Sachs Group Inc.
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The Japan manager group rose 3.6% intraday on Tuesday amid a global market rebound, reversing the setback seen a day before when such funds saw their largest single day drawdown, data compiled by Goldman’s prime brokerage showed in a report.
Despite the MSCI Japan Index slumping 12% on Monday, Japanese equities in the Goldman prime book were only marginally net sold, indicating that hedge funds weren’t behind the selling flows, it said.
Hedge funds added risk in Japan with short sells exceeding long buys almost two to one, it added. Asia-focused managers are also seeing a partial recovery, rising 1.5% after a 2.4% drawdown the previous day.
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