Hedge fund shorts the U.S. dollar with FX volatility low

Elizabeth Warren and hedge funds go together like oil and water. Over the last month, big hedge fund names like Leon Cooperman and Steven Cohen have warned about the threat of Elizabeth Warren to the financial markets.

But are hedge fund managers willing to take aim at the market if consensus grows for Warren? At least one fund is willing to short assets over the threat of a Warren presidency.

Scott Bissent of Key Square Capital is shorting the U.S. dollar. He is also waiting for the market to react negatively to Warren’s presence on the campaign trail and potential nomination. His hedge fund has about $4.5 billion under management.

Elizabeth Warren and Hedge Funds Shorting

Bissent recently sent a letter to investors warning about the prospect of Elizabeth Warren.

“Intelligent people can argue whether Senator Warren’s numerous programs will be good or bad for American society, but they are unequivocally negative for U.S. asset prices,” Bessent wrote to investors this month.

“A Warren presidency, or the mere threat of one, will likely hasten the exodus of foreign and domestic capital to overseas markets,” Bessent continued.

Related: Elizabeth Warren: Everything is Wrong with Private Equity, Everything