Wed, Jan 18, 2017
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. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Short Selling - Long-short hedge funds are ditching the shorts to focus on longs[more]

    From Bloomberg.com: What happens when you take the "short" out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG s

  4. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  5. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee