Vantage Point Asset Management, a hedge fund, is increasing its investments in Japanese stocks and the U.S. dollar in anticipation of a significant victory for Donald Trump in the upcoming presidential election.

The firm's chief investment officer, Nick Ferres, suggests that a second term for Trump would likely enhance global economic growth and maintain elevated inflation levels due to his pro-growth policies and tax cuts.

This strategy is based on the expectation that higher Treasury yields would strengthen the dollar and weaken the yen, which typically benefits Japanese stocks in an export-driven economy.