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Macro Play Goes Awry but Traders Keep the Faith

Firms that went long Japanese stocks and short yen in 2013 got hurt in 2014 as stimulus faded. But they still believe in Abenomics.

One of the most profitable trades for more than a year sharply reversed in 2014, creating havoc for many macro hedge funds as well as more eclectic investors who gravitate to a wider variety of strategies. The trade involves going long Japanese stocks and simultaneously shorting Japanese yen in response to

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