Chris Hansen’s Valiant Capital Management is riding a wave of volatility to strong returns, with bearish bets paying off handsomely in April as markets reeled from US President Donald Trump’s renewed tariff push, according to a report by the Wall Street Journal.

The report cites an investor letter seen by the Journal as confirming that the $1.4bn long-short equity hedge fund posted a 9% net gain in the first half of April, bringing year-to-date performance up to 15 April to approximately 13%. The performance was driven by Valiant’s short book, which surged 23.5% over the period—more than offsetting losses on the fund’s long positions.

In addition to profitable shorts, the firm benefitted from macro hedges placed across select North American, European, and emerging market credit exposures, in anticipation of economic disruption from escalating trade tensions.

“The simultaneous volatility and unpredictability we are seeing in geopolitics, trade policies, fiscal policies, and financial markets has left most investors confused and uncertain of how to respond or pivot,” Hansen wrote. “But not at Valiant.”

Hansen, a veteran stock picker and former Tiger Cub, has long embraced tactical hedging and active shorting. In 2020, Valiant gained 57% as it capitalised on market dislocations during the onset of the Covid-19 pandemic—again led by timely shorts and credit protection.