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Markets & Stocks
Tiger fund tamed by yen
October 8, 1998: 6:02 p.m. ET

Gains in Japanese economy results in 10-percent hit for major hedge fund
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NEW YORK (CNNfn) - Hedge fund Tiger Management suffered substantial losses this week as a result of volatility in the Japanese market, sources familiar with Tiger's fund said Thursday.
     Tiger, one of the most respected hedge funds with close to $20 billion in assets, lost nearly 10 percent of its value Wednesday when the dollar fell dramatically against the Japanese yen, a Tiger investor told CNNfn.
     That's on top of a similar hit last month when bets against Japan were reportedly hurt by sharp gains in the yen and Japanese stocks.
     However, unlike rival hedge fund Long Term Capital Management, which ran into trouble last month because its bets were highly leveraged, Tiger is not believed to be excessively leveraged and not suffering from liquidity limitations, the source said.
     The investor also pointed out that Tiger Management reassured him the fund is still up about 8 percent on the year.
     Word that Tiger Management was caught betting the U.S. dollar would rise and had to buy up a yen position to cover that bet contributed to the yen rally over the last two days.
     On Wednesday, the dollar plunged to a 12-month low against the yen, sending panic through the world's currency markets. On Thursday, the dollar continued to slide, trading at 119.36 yen.
     Tiger officials declined comment. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.