Thu, Sep 29, 2016
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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style