Wed, Jul 27, 2016
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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe