Mon, Apr 23, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its