Thu, Apr 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Cash balances in margin accounts drop, triggering sell signals; leverage climbs higher

Wednesday, March 06, 2013

Bailey McCann, Opalesque New York: A sell signal was triggered on January NYSE Margin Debt Data, the actual balance was a negative $77.2m, according to new data from lead hedge fund analyst Mary Ann Bartels at Bank of America Merrill Lynch Global Research. Bartels notes that, "the last time a sell signal was generated was on April 2010 and the S&P 500 subsequently corrected by 16% in two months." Data also shows that hedge funds continue to underperform the equities market, February flash return was up 0.33% as of Feb 27, compared to a price return of 1.19% for the S&P 500.

Leverage, as measured by NYSE Margin Debt, rose 31.6% year-on-year (YOY) and 10.2% month-over-month (MOM) to $364bn in January, compared to the July 2007 peak of $381bn, data shows. The investable hedge fund composite index was up 0.33% for February as of February 27 2013, compared to a price return of 1.19% for the S&P 500. In terms of strategies, Convertible Arbitrage performed the best, up 1.23%. CTA Advisors performed the worst and were down 0.55% for the same period.

Funds sold NASDAQ 100 futures, were flat the S&P 500, and bought the Russell 2000. In commodities, funds bought soybean, sold corn, and added to their shorts in wheat. In currencies, funds sold Euro, bought USD, and are essentially flat the Yen.......................

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: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Alternative asset firm YieldStreet surpasses $100m of loans funded in less than 8 quarters[more]

    Komfie Manalo, Opalesque Asia: Alternative asset investment platform YieldStreet reported that it has surpassed $100m in loans funded in less than eight quarters from accredited investors and single family offices. YieldStreet was founded by Milind Mehere and Michael Weisz. In a

  3. Investing - Investor appetite for high-growth IPOs to be tested, Apollo boosts fund's stock allowance for 'diamonds in the rough', Hedge funds uncertain over outlook for Hargreaves Lansdown[more]

    Investor appetite for high-growth IPOs to be tested From FT.com: The US listings market is poised for a busy week with deals that will test investors' appetite for high-growth - but lossmaking - companies. Eight new listings are scheduled for this week, the most since October of 2016,

  4. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  5. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant