Lazard and Pimco profit from shorting Hong Kong dollar

Repeat interventions from HKMA fail to revive a currency under pressure from rising US rates

The rapid rise in US interest rates has roiled investments from technology stocks to cryptocurrencies. But one trade is enjoying a renaissance: shorting the Hong Kong dollar.

Lazard Asset Management, Fiduciary Management and Pimco held net short positions of US$323 million, US$110 million and US$89 million in Hong Kong dollar FX forwards, according to data gathered from regulatory filings in the US (see figure 1). The investors placed their short bets at prices ranging from HK$7.7567 to HK$7