Tue, May 30, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Asset flows direct hedge fund market exposures - BAML

Wednesday, November 14, 2012

Bailey McCann, Opalesque New York: New data from Bank of America Merrill Lynch Global Research shows that asset flows out of hedge funds may be driving their market exposures, specifically outflows in the long/short equity space may have a limiting effect on raising market exposure over year's end. According to historical data in the report, "imputed market exposure is highly correlated to total asset changes for L/S hedge funds based on quarterly data since Q1’04. In fact, 60% of the variation in L/S exposures may be explained by asset flows." As such, funds unable to maintain asset inflows going into year end may not be able to increase market exposure.

The investable hedge fund composite index was up 0.10% for the first week of November, compared to down 1.25% for the S&P 500. In terms of individual strategies, CTA Advisors and Convertible Arbitrage were the best performers last week, up 0.80% and 0.54%, respectively; Market Neutral performed the worst and was down 0.27%.

In commodities, funds are starting to sell out of soybean and wheat, leaving corn flat. Soybean and wheat remain in a crowded long. Funds sold gold, silver and platinum, flat copper and bought palladium. In energy, funds bought crude, sold heating oil & gasoline, and added to their shorts in natural gas. Currencies are......................

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 - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  2. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  3. Opalesque Roundtable: France's hidden strengths in AI and machine learning[more]

    Komfie Manalo, Opalesque Asia: All nations offer their strengths and weaknesses, but one that is undisputed is the quality of the French scientists, claimed Guillaume Vidal, co-founder of French technology startup Walnut Algorithms at the

  4. AI-based hedge fund brings machine learning investing to masses[more]

    Komfie Manalo, Opalesque Asia: Machine learning-based hedge fund firm Greyfeather Capital is trying to bring artificial intelligence investing to the masses with its plan to expand beyond the limited reach of the alternative investments space. "We're excited to bring AI technology to traditio

  5. Outlook - Iconic hedge fund manager Seth Klarman says investors are missing huge risks, Paul Singer warns of a world at risk[more]

    Iconic hedge fund manager Seth Klarman says investors are missing huge risks From Businessinsider.com: An iconic hedge fund manager says investors are misperceiving risks in the markets - at a time when markets are hitting historic highs. Baupost Group's Seth Klarman laid out his concern