Hedge Fund Star Fuchs Fights to Recover From Soured China Bets

Benjamin Fuchs is a former Lehman Brothers trader who managed $5 billion at his company's peak. His hedge fund lost almost 11% last year and 20% in the first seven months of 2022. The company is bracing for possible redemptions and under pressure to retain staff. It will focus on more liquid bets such as stock and currency volatility, convertible bonds and block trades. It wants to aim for assets under management of about $1.5 to $2 billion. China introduced its “three red lines” policy in 2020. This capped the debt that developers could take on in an attempt to reduce excesses in their sector.