Wed, Aug 27, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund leverage returns to 2007 highs, but turnover remains at decade low - Goldman Sachs

Friday, February 22, 2013

Bailey McCann, Opalesque New York: Hedge fund net long exposure rose to 52%, matching the 1Q 2007 high, while turnover remained at decade lows, according to the latest Hedge Fund Trend Monitor from Goldman Sachs. The report follows others in noting that overall hedge funds returned just 8% last year, lagging the S&P 500 by 800bps.

Global macro funds had the most disappointing results returning just 2% compared with the 8% average return of the hedge fund industry overall. "These funds likely struggled trying to time the swings in risk sentiment that drove asset performance in the US, Europe, and Asia," report authors write of the performance.

Among other interesting trends toward the end of the year was hedge funds' move out of Apple and gold and into financials. High hedge fund concentrations also seemed to be a factor influencing lackluster performance. Report authors note that concentrated positions have tended to fair better in upward trending markets but do less well in choppy markets without a clear trend.

At the sector level, hedge funds increased their cyclical overweights. Consumer Discretionary remains the largest overweight, with financials receiving the largest allocations overall. Large-cap stocks now account for over 50% of a typical fund. Report data shows that this trend has been going on for the last ten years and is expected to continue as hedge funds i......................

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. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius