Sturgeon Capital began to bounce back in September as investors started to become a little less anxious and the aggressive selling began to slow. Although the markets finally stabilized, they haven't rebounded significantly, the $18.5 million Central Asia fund said in its September update. The hedge fund's management sees the U.S. dollar as being "the key variable" in the recent market activity.
Sturgeon Capital gained 1.1% in September
After a steep 9.15% decline in August, Sturgeon Capital was up 1.1% in September. Like with many U.S.-focused hedge funds, the Asia-focused fund has had a rocky year. Sturgeon was in the red in all but four months of this year. By April, all the gains the fund captured in January had been erased, and then some.
In their September update, Sturgeon management explained why and how the U.S. dollar is driving some parts of the market now. They see several tailwinds pushing the currency along. For example, the U.S. has the highest interest rates and the strongest economy "among the most liquid currencies."
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