Thu, Feb 22, 2018
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. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  2. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  3. Institutional Investors - Hedge funds regain their appeal for a $57 billion asset manager, Private credit strategies in stratosphere[more]

    Hedge funds regain their appeal for a $57 billion asset manager From Bloomberg.com: With volatility back on the radar, one of the Nordic region's biggest asset managers is considering relying a bit more on hedge funds to help oversee his portfolio. Mikko Mursula, the chief investment off

  4. Investing - All aboard for hedge funds as trade tide lifts shipping, Hedge funds pile into Time Warner in bet on merger success[more]

    All aboard for hedge funds as trade tide lifts shipping From Reuters.com: Forced to abandon ship after mistiming their investments five years ago, hedge funds are venturing back in a bid to profit from growing global trade flows. Around 90 percent of traded goods by volume are tran

  5. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac