Discovery Capital Management’s macro hedge fund surged 48% last year, becoming one of the best performing money pools in a challenging period for peers betting on economic trends.

Led by Rob Citrone, the $1.5 billion fund’s gains were driven by its long bets on equities and sovereign bonds in Latin America, US credit as well as long and short wagers on financial stocks, a person with knowledge of the matter said, asking not to be identified because the details are private.

The fund had posted a loss of 29% in 2022. A spokesman for the investment firm declined to comment.

Macro hedge funds weathered a volatile trading environment last year as central banks cranked up interest rates while shock waves from the collapse of Silicon Valley Bank hurt their leveraged bets in the rates market. They were down 0.4% on average through November last year, according to data compiled by Bloomberg.

Citrone — one of many hedge fund managers dubbed Tiger cubs for having worked at Julian Robertson’s Tiger Management — founded Discovery in 1999. 

This article was provided by Bloomberg News.