Mon, Sep 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Macro hedge funds turn negative on commodities and emerging markets

Tuesday, August 27, 2013

Bailey McCann, Opalesque New York:

Macro hedge funds have aggressively reduced their commodities position to a net short for the first time since June according to the latest research from Bank of America Merrill Lynch. Macro funds have instead opted to increase their exposure to the S&P500 and NASDAQ. Data also shows that both long short & market neutral strategies have disinflationary expectations.

The investible Hedge Fund Composite Index was down 0.57% for the month, as of Aug 21, compared to a -3.6% return for the S&P 500 index. In terms of strategies, Convertible arbitrage performed the best, up 0.16% while Equity Long Short performed the worst, falling 0.93%. Market Neutral funds decreased market exposure to 9% net long from 15% net long. Equity Long/Short also reduced market exposure to 34% from 42% net long; slightly below the 35-40% benchmark level.

In commodities, funds sharply increased their long positions in Soybeans and marginally reduced their corn shorts. Wheat was effectively unchanged andremains in a crowded short. Funds also bought metals across the board. Silver and Gold were the largest, measured by notional values. Gold remains in the contrarian buy zone; funds are flat copper for the first time since March. In interest rates, funds flipped from net sho......................

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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest