While the bitcoin bull run in 2017 was largely driven by retail investors, the 2020 surge appeared to be driven by a wider
set of investors, including institutionals.
Special Situations strategies have been under pressure in 2020, both on their event and credit arbitrage books. Due to
their long structural market beta, managers have underperformed early this year. They have retraced most but not all
they have lost.
Since the U.S. presidential election on November 3
th, the USD has started a descent that may have legs under the
new administration. The easing of trade tensions and an accommodative policy mix could put additional pressure
on the DXY, which was down -1.7% since the election, to the benefit of European currencies.