Wed, May 27, 2015
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. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  2. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  3. Institutions - Institutional investors turn to real estate, planes, Assets at Bostonís five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  4. Opalesque Exclusive: A lot of hedge fund investors are beginning to recognise the need for ongoing cyber threats monitoring[more]

    Benedicte Gravrand, Opalesque Geneva: Corporate Resolutions Inc. recently formed a strategic partnership with iThreat Cyber Group. The two companies have worked together for years, assisting clients when challenging

  5. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

 

banner