(solution) give brief and simple explanation to this article and why it

(solution) give brief and simple explanation to this article and why it

give brief and simple explanation to this article and why it relates to the topic hedge funds 

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! BONDS!NEWS!|!Tue!Aug!23,!2016!3:08am!EDT! REFILE=Hedge!funds!eye!
Japan!stocks!again!after!
mauling!by!wrong=way!
yen!bets!
!
! ! !!!! (Refiles!to!fix!typo!in!first!bullet!point)!
*!Hedge!funds!book!losses!after!bets!on!rising!stocks,!
weaker!yen!
*!Trade!stumbles!in!H1,!average!fund!down!4.21!pct!
*!BlackRock!says!good!time!for!bargain=hunting;!earnings!
eyed!
*!Japan!Post!Bank!to!start!hedge!fund!investment!this!year!
By!Maiya!Keidan!and!Tomo!Uetake!
LONDON/TOKYO!Aug!23!Japan=focused!hedge!funds!may!
be!ready!to!start!nibbling!at!Tokyo!shares!again!after!
suffering!losses!earlier!this!year!by!betting!on!a!weaker!
yen.!
Though!the!outlook!for!the!yen!remains!as!murky!as!ever!
ahead!of!Bank!of!Japan!and!U.S.!Federal!Reserve!policy!
reviews,!some!fund!managers!think!Japanese!stocks!are!
looking!attractive!again!after!tumbling!13!percent!from!
January.!
Foreign!and!domestic!hedge!funds!are!anxious!for!payback,!
after!average!losses!of!4.2!percent!in!the!first!seven!months! of!the!year,!according!to!data!tracker!Eurekahedge.!
Many!had!shorted!the!yen!betting!the!Fed!would!hike!
interest!rates!several!times!this!year,!boosting!the!dollar,!
while!the!BOJ's!negative!interest!rate!was!seen!keeping!a!
lid!on!the!yen.!
Since!the!yen!and!Japanese!stocks!are!closely!correlated!=!
stocks!generally!fall!when!the!yen!rises!and!vice!versa!=!
investors!who!got!the!yen!wrong!generally!got!stocks!
wrong,!too.!
They!were!further!wrong=footed!by!the!yen's!surge!as!
investors!scrambled!for!safe!havens!after!Britain's!surprise!
vote!in!June!to!leave!the!European!Union.!
Hedge!funds!now!think!the!market's!repricing!has!created!
some!opportunities!in!equities.!BlackRock's!largest!mutual!
fund!said!last!week!that!equities!were!now!cheap!and!that!
it!was!increasing!its!holdings!to!about!10!percent.!
Other!funds!are!looking!to!the!next!round!of!earnings!soon!
from!some!of!Japan's!top!firms!to!help!them!assess!
valuations!after!the!first=half's!firesale.!
"The!initial!reaction!when!a!macro!thesis!fails!is!for!all!
equities!to!get!punished,"!said!Edward!Rogers,!founder!of!
Tokyo=based!fund!of!hedge!funds!Rogers!Investment!
Advisors.!
"Of!20!companies,!if!10!have!way!better!numbers,!then!all!
of!a!sudden!people!go!out!and!buy!that!stock!again,!so!our!
managers!benefit!from!holding!that!stock."!
Katsunori!Sago,!chief!investment!officer!of!Japan!Post!Bank!
,!which!plans!to!start!hedge!fund!investment!next!year,!says!
hedge!funds!with!new!technologies!and!strategies!may!
outperform.!
"Because!there's!been!a!diversion!between!monetary!
policy=makers'!intentions!and!market!directions,!some! hedge!funds!are!not!able!to!produce!returns!as!they!used!
to.!On!the!other!hand,!funds!that!make!full!use!of!latest=
generation!technologies,!such!as!big!data,!are!doing!well."!
!
YEN!STILL!A!BIG!QUESTION!MARK!
The!yen!has!risen!from!120.30!against!the!U.S.!dollar!at!the!
start!of!the!year!to!around!100.!
"These!investors!planned!to!make!money!on!both!sides!of!
the!trade.!However,!as!the!yen!grew!stronger,!that!trade!
didn't!work,!people!had!to!unwind!large!short!positions,"!
said!Frank!Packard,!president!of!TAP!Japan,!an!investment!
advisor.!
So=called!long=short!hedge!funds!=!which!bet!on!stocks!
rising!and!falling!=!have!lost!an!average!3.82!percent!this!
year!versus!gains!of!5.72!percent!in!the!same!period!last!
year,!the!Eureka!hedge!data!showed.!Long=only!funds!lost!
an!average!7.44!percent,!versus!a!rise!of!11.25!percent.!
Activist!hedge!funds!that!buy!shares!and!push!for!
management!change!have!lost!5.7!percent!this!year,!versus!
gains!of!16.7!percent.!
Funds!that!focus!on!the!currency!are!now!watching!policy,!
rather!than!fundamentals,!as!the!market's!main!driver.!
Japan's!economic!growth!stalled!in!the!second!quarter!as!
weak!exports!and!shaky!domestic!demand!prompted!
companies!to!cut!spending,!putting!fresh!pressure!on!
premier!Shinzo!Abe!to!come!up!with!policies!that!will!
produce!more!sustainable!growth.!
Many!market!watchers!also!expect!the!BOJ!to!ease!policy!
further,!despite!growing!fears!it!is!nearly!out!of!options!and!
that!any!respite!for!the!yen!would!be!short=lived.!
(Reporting!by!Maiya!Keidan!and!Tomo!Uetake;!Editing!by!
Kim!Coghill)!