Mon, Mar 2, 2015
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. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie