The Bank of Japan (BOJ) kept its short-term interest rate unchanged at 0.5% on Tuesday, while announcing it would slow the pace of bond purchase reductions starting next fiscal year. The move signals a measured and cautious approach to unwinding its long-standing monetary stimulus.While the decision was widely expected, it comes at a complex time...
For the week ending June 4, U.S. equity funds recorded their third consecutive week of outflows, with a total net withdrawal of $7.42 billion, according to LSEG Lipper data. Ongoing uncertainty over U.S. trade policy and investor caution ahead of Friday’s key jobs report contributed to the pullback.
In contrast, European equity funds attracted inflows for the eighth straight week, totaling $2.72 billion, driven by a softer inflation print and growing expectations — later realized — of a rate cut by the European Central Bank on Thursday.
Other key highlights:
📌 Asia: Regional equity funds received $1.84 billion in net inflows
📌 Sector Funds: Technology and industrials led with $909 million and $878 million in inflows respectively, while financials and healthcare sectors saw nearly $800 million in outflows each
📌 Global Bonds: Continued their strong momentum with $16.17 billion in net inflows — the seventh consecutive weekly gain. U.S. dollar-denominated short- and medium-term bond funds logged their largest weekly inflow since April 2024 at $4.66 billion
📌 High-Yield Bonds: Attracted a notable $2.93 billion
📌 Money Market Funds: Inflows surged to a five-month high of $108.5 billion
📌 Gold and Precious Metals: Commodity funds saw $1.69 billion in inflows — the highest in seven weeks
💡 Emerging markets remained resilient: Bond funds recorded $1.99 billion in net purchases, while equity funds posted modest inflows of $191 million.
➡️ These flows reflect a clear strategic shift by global investors — reducing exposure to U.S. equities amid policy uncertainty, while favoring safer assets such as bonds, gold, and non-U.S. markets, especially as monetary policy signals diverge globally.
So far in 2025, the hedge fund industry is showing a clear divide: systematic trend-following funds are struggling amid erratic market reversals, while discretionary macro funds are capitalizing on volatility.
📉 Trend funds, reliant on algorithms to follow market momentum, are down over 11% YTD, with major players like Systematica, Transtrend, and Aspect Capital facing losses up to 18.5%. Frequent policy shocks—such as those triggered by Trump-era decisions—have disrupted trends before these models could adapt.
📈 In contrast, discretionary macro funds, which actively shift positions based on evolving market signals, are up nearly 7% on average. Notable performances include:
EDL Capital: +24%
Rokos Capital: +9.5%
Brevan Howard Alpha: +4.32%
Some diversified firms, like Man Group and AQR, have offset trend losses with multi-strategy fund gains.
🔍 Takeaway: In today’s highly volatile landscape, flexibility and discretion matter more than ever. While trend strategies serve a defensive role, nimble macro funds are proving more resilient and adaptive.
Amid growing concerns over U.S. fiscal policy, rising public debt, and the risk of a recession driven by trade tensions, global investors are increasingly redirecting capital away from U.S. equities into European and emerging markets.According to data from LSEG Lipper, U.S.-domiciled mutual funds and ETFs saw $24.7 billion in net outflows in May—the largest in...