Hedge Fund Dighton Shifts $230 million to Cash, Sees Rates Rising

LONDON (Reuters)—Hedge fund Dighton Capital Management has parked its entire $230 million of assets in cash, citing market complacency about future inflation and frustration with Western governments who are "stifling entrepreneurialism."

Alex Moiseev, chief investment officer at Geneva-based Dighton, said he plans to return to the market to bet on long term interest rates rising after investors have digested details of the latest U.S. stimulus package due in November.

http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail17646.html

Alex, good luck with your "cash" position !

 

How much yield do cash or cash-equivalents yield in the UK?

Here (In Australia) they're not too bad at around 5-6% a year.

 

I don't know the UK rates market very well, but I know the US rates market extremely well. It takes more than 1billion in order flow at clip to move the 2y market. So it seems to be what a hedge fund does with $230mm is rather marginal in terms of importance.

 

If he had a clue, he'd have other open positions on.