Sat, Jul 4, 2015
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: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner