Fri, Nov 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

S&P 500 moves into a crowded long as hedge funds dial up their appetite for the index

Tuesday, August 06, 2013

Bailey McCann, Opalesque New York:

Hedge funds are pushing the S&P 500 to a crowded long, with the possible exception of macro funds which have sold their positions in the S&P to a net short for the first time since May, according to the latest hedge fund monitor data from Bank of America Merrill Lynch Global Research. Macros also reduced their long positions in the Nasdaq 100. Market Neutral funds raised market exposure to 5% net long from 5% net short. Equity Long/Short slightly reduced market exposure to 38% from 39% net long; in line with the 35-40% benchmark level.

Funds also aggressively bought 10-year Treasuries (as of July 30th) and remain near all time record longs in WTI crude. Corn shorts are their largest in almost 8 years.

The Investable Hedge Fund Composite Index was up 1.02% for the month of July, underperforming the S&P 500 index’s price return of 4.95%. In terms of strategies, Equity Long Short and Event Driven performed the best, up 2.57% and 1.68%, respectively. Macros performed the worst, falling 0.54%.

In currencies, the Yen remains in a crowded long. Funds sold some of their positions in the US Dollar index, and covered Euro shorts.

Both Long/Short and Market Neutral strategies have disinflationary expectations.

......................

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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  3. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  4. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  5. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took