FPP Japan covers post tsunami effects


Hedging strategies in place before the March earthquake and tsunami helped the FPP Japan fund to end the month in positive territory, up 5.87% in March and 9.46% year to date.

Whenever the fund has a high net long position it always has put options, explains FPP’s Richard Whittall. While the Nikkei Index fell more than 15% in the days after the disaster, the fund dropped less than 3%, proving that its hedging strategies work, he says. Once the market had fallen, the fund’s long position was increased, which benefited the fund’s performance and took it back into