Hedge Funds Chase Profits From Knife-Edge Japan Vote

Hedge funds are actively seeking ways to capitalize on the uncertain outcome of Japan's upcoming leadership election. They are employing various strategies to potentially profit from the close race, including: 1. Selling stocks: Some hedge funds are considering selling Japanese stocks, anticipating potential market volatility and downturns in the event of an unexpected election result. 2. Betting on a stronger yen: Hedge funds are exploring opportunities to bet on the Japanese yen strengthening, as the currency's performance is closely tied to the election outcome. 3. Trimming risk assets: To mitigate potential risks, some hedge funds are planning to reduce their exposure to riskier assets, such as stocks, in anticipation of market turbulence. The uncertainty surrounding the leadership election has created a knife-edge situation, and hedge funds are employing a range of strategies to navigate the volatile environment and potentially capitalize on the situation.