Sun, Nov 29, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds cut market exposures across strategies

Tuesday, June 11, 2013

Bailey McCann, Opalesque New York: Hedge funds of all types are cutting market exposures, according to the latest Hedge Fund Monitor from Bank of America Merrill Lynch Global Research. Market Neutral, Equity Long/Short and Macros all reduced market exposure, with Market Neutral and Long/Short Equity cutting exposures below historical averages. Hedge fund cash holdings & net exposures are back to second quarter 2007 pre-financial crisis levels.

The Global Diversified Hedge Fund Index was up 0.38% in May, underperforming the S&P 500 index by 170bps. Preliminary readings show that Event Driven & Equity Long/Short strategies performed the best, up 2.06% and 1.08%, respectively. Managed Futures performed the worst and was down 2.96%.

In currencies, the US Dollar moved back into a crowded long while funds covered shorts in the Euro. Currency positions are sizable, and volatility is expected to continue. In addition, they aggressively bought 10-yr Treasuries, but doubled their shorts in 2-yr Treasuries. Trades are back to risk-on.

In commodities, gold and silver remain in the buy zone. Funds bought soybean, sold corn, and reduced their shorts in wheat. WTI crude oil remains in a crowded long; heating oil remains a crowded short.


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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November