Sun, Jul 31, 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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New