Wed, May 23, 2018
A A A
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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven