Hedge funds to rethink strategy

Intervention by central banks, particularly in Asia, meant there was exceptional volatility in currency pairs, said Ronny Aked, partner at London-based hedge fund Arsago. He said this has led to hedge funds that rely on quant-based models to lose out.

"These funds are missing out on a key factor in what has determined how these currencies have moved – political decision-making. They cannot take into account a decision by the Japanese prime minister to buy dollars to keep the value of the yen