Sat, Oct 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds' net long exposure reached a new high of 53%, more than last quarter’s record of 52%

Friday, May 24, 2013

Benedicte Gravrand, Opalesque Geneva: - According to Goldman, Sachs & Co.’ latest monthly Hedge Fund Trend Monitor, hedge fund net long exposure reached a new high of 53%, and the most popular (+17%) and the most concentrated (+23%) long positions outperformed the S&P500 (up 15% YTD then). However, the average hedge fund returned 5%, as shorts did not do as well, and 13% of them experienced absolute losses.

The Monitor, which analyses 705 hedge funds with $1.5tln of gross equity positions, is based on 13-F filings as of May 15th, 2013. It made eight general observations:

1. Hedge funds’ YTD average of 5% is a continuation of a multi-year trend of lacklustre relative performance.

2. Goldman Sachs’s basket of the 20 most concentrated hedge fund stocks outperformed S&P500 and has done so 69% of the time since 2001 by an average of 267bp per quarter.

3. Goldman estimates that hedge funds operate 53% net long, more that last quarter’s record of 52%. "Risk appetite had matched previous highs from 1Q 2007 last quarter," the report says.

4. The Monitor says that in Q2, "we analyzed $133 billion of gross notional single stock options held by hedge funds composed of $68 billion of calls and $65 billion of puts. In general, the sector tilts and ETF positioning in the option holdings were similar to the underlying stock holdings. Funds held more calls than puts in sectors that funds are overweight versus the Russell 3000. ETF options favor puts, ......................

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: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to