Reuters reveals FX fund losses

Reuters mined exclusive Lipper data to reveal the Top 20 losers among fixed-income currency funds in May, when the euro-zone debt crisis caused volatility to soar and pummeled the single currency. The euro tumbled over 6 percent in the first 20 days of the month and the Australian dollar 2 percent, hit by investor risk aversion and the unwinding of carry trades that had favoured high yielders. The Reuters report spelled out which funds are worst performers so far this month, and interviewed fund managers to find out their strategy. Despite losses this month, die-hard euro bull Axel Merk of Merk Investments told Reuters he is piling up even more euro exposure in his hard currency fund, convinced it’s oversold.