Sat, Jun 25, 2016
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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider