Sat, Mar 7, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds bullish on palladium prices as shortage looms

Tuesday, August 06, 2013

amb
Palladium
Precy Dumlao, Opalesque Asia:

Hedge funds are bullish on palladium’s prices as global financial firms like Morgan Stanley and Credit Suisse have predicted there will be a shortage of the metal.

A report by BusinessWeek said that Morgan Stanley had predicted that global demand for palladium would exceed the 1.33 million ounces to be produced this year. For its part, Credit Suisse said the shortage for the metal would last up to 2016, while research firm CPM Group said the deficit would take a decade to fill.

John Stephenson, who manages C$2.65bn at First Asset Investment Management Inc in Toronto, was quoted as saying, "The supply situation is potentially very bullish for palladium, so I am probably the most bullish on palladium amongst all commodities. Any time supply and demand are out of whack, we see prices swing."

Palladium rose 3.3% to $728 in London this year, says BusinessWeek. Prices are expected to reach $800 an ounce in Q1 of 2014, a 9.2% increase from its current level and further rise to $850 in 2015. Already, speculators, including hedge funds, have raised their bets on higher prices as car sales are expected to to rise. 67% of the palladium supply is used in auto-catalysts.

Data from the U.S. Commodity Futures Trading Commission (CFTC) showed that hedge funds and other speculators hold a net 22,970 palladiu......................

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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  5. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi