Sat, May 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds crowd crude, downside risk lingers

Tuesday, June 05, 2012

Bailey McCann, Opalesque, New York: Hedge funds have started selling off their long positions in crude oil, however downside risk remains should funds opt to unwind those positions according to a new report from BofA Merrill Lynch Global Research. Writing in the report, lead hedge fund analyst Mary Ann Bartels writes that funds are also selling out of heading oil and gasoline while covering their positions in natural gas.

The investable hedge fund composite index was down 1.09% month-to-date (MTD) as of May 30, compared to down 6.05% for the S&P 500. CTA Advisors and Macro strategies performed the best and were the only two strategies with positive returns, up 2.29% and 0.35% MTD, respectively. Long/Short performed the worst, down 3.03%. Market Neutral funds bought market exposure to 17% net long – the highest since October 11. Equity Long/Short bought market exposure to 43% - above the 35-40% benchmark level for the first time since last June.

In commodities, funds continue to sell out of precious metals, pushing gold into the buy zone. Funds sold corn and soybean, but bought wheat to a net long for the first time since last June. In currencies, funds continued to buy up the US Dollar and Yen while adding to their shorts in the Euro, maintaining a months long short position.

......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven