Thu, Jul 30, 2015
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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  3. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  4. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  5. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

 

banner