Sat, Mar 28, 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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner