Thu, Apr 17, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

BofAML’s composite index returns 1.45% month to date, 5.08% year to date

Wednesday, May 29, 2013

Beverly Chandler, Opalesque London: Bank of America Merrill Lynch’s report this week finds that:

  • Market Neutral and Long/Short strategies notably reduced equity market exposure.
  • Macro hedge funds sold the US Dollar index to a net short for the first time since March 2013.
  • Large speculators sold wheat and Euro into a crowded short, but bought crude oil into a crowded long.

The investable HF composite was up 1.45% month to date, with a year to date return of 5.08% against a 3.62% return for the S&P 500 index. Convertible Arbitrage and Event Driven performed the best, up 2.80% and 2.13%, respectively, putting Convertible Arbitrage in the position of top performer year to date with a return of 8.93%. Market Neutral performed the worst and was down 0.67%.

Looking at hedge fund positioning by major strategies, BofAML reports that its models indicate that Market Neutral funds aggressively reduced market exposure to 6% from 16% net long. The firm found that equity long/short funds reduced market exposure to 32% from 41% net long; below the 35-40% benchmark level. BofAML says that macros funds partially covered their shorts in the S&P 500, NASDAQ 100, commodities and T-notes, reduced their net long positions in EM and EAFE, w......................

To view our full article Click here

Banner
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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an