Tue, Jan 23, 2018
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: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  3. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  4. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  5. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter