Jupiter's Bezalel shorts US treasuries for first time

Ariel Bezalel, manager of the £593m Jupiter Strategic Bond fund, has opened his first ever short position in US treasuries, citing the opportunity for an asymmetric trade as the US economy recovers.

Top-quartile manager Bezalel said he was becoming more confident in the strength of the US economic recovery and, while warning the crisis in the eurozone could take years to play out, said there are also "better things now being done by policymakers in Europe". "We see a world of bimodal outcomes - where we either inflate or deflate. Looking at the US treasury market, we see some pretty cheap insurance," he said. "We have started shorting 2-year and 5-year US treasuries to hedge against a scenario of higher growth and inflation. It is the first time we have ever shorted treasuries." ...