This Hedge Fund Posted Gains Of 193% In 2022: How Did That Happen In A Bear Market?

Market bets on whether the Federal Reserve's rate hikes would lead to a recession in 2022 became a primary focus for the equity markets and for those who traded them.

Because of the Fed's fixation with economic growth, measures of correlation among individual securities had reached their highest level since the flash crash of 2020.

The S&P 500 SPY experienced intraday swings of 1% or more in 31 consecutive sessions last year, the second-longest streak in a decade, as a result of government data and bond yields.

Hedge funds jumped into macro bets, convinced they had a competitive advantage in forecasting the future. And, some did.

Haidar Jupiter Fund, which focuses on macro trading — the investment approach that considers macroeconomic trends occurring within a country, and on a global level — saw portfolio returns of 193% in 2022, outperforming other top 10 performing hedge funds by as much as 173%, Bloomberg reports.

Also Read: 2022's Worst Performing Hedge Fund Saw Negative 56% Returns, Has These Stocks To Blame

How did Haidar Jupiter do it?

The fund's founder, Said Haidar, used a heavily leveraged strategy to capitalize on central banks' exit from years of monetary expansion as they attempted to constrain soaring inflation.

According to Bloomberg, the manager was betting against rates in the U.S., the U.K., and the G7 nations as a whole, which saw bond yields rise as traders bet on the timing and magnitude of rate hikes.

Haidar also traded commodities and individual stocks, according to the documents seen by Bloomberg.

The fund was up as much as 274% at one point, but gave up some of those gains in the final quarter.

Read next: Important CPI Inflation Reading Coming On Thursday: What Investors Should Expect

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