Tue, Oct 6, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund reduce exposure to S&P, underperform index in October

Tuesday, November 05, 2013

Bailey McCann, Opalesque New York:

Hedge funds reduced their exposure to the S&P500 over the past week according to the latest research from Bank of America Merrill Lynch Global Research. October flash returns show hedge funds underperforming the S&P500 index for the month, reverting to a trend that dominated most of the first half of the year. Retuns for October are +1.18% compared to a price return of up 4.86% for the S&P500 index for the same period.

In terms of strategies, Equity Long Short and Event Driven performed the best, up 1.91% and 1.47% respectively. Convertible Arbitrage performed the worst. Market Neutral funds decreased exposure to 7% from 10% net long. Equity Long/Short also reduced market exposure to 23% from 30% net long; below the 35-40% benchmark level. Macros decreased their long exposure to S&P500 and NASDAQ.

The CFTC has resumed releasing position data through October 22,2013 following the US government shutdown. In commodities, funds sharply increased their long positions in Soybeans and increased shorts in corn and wheat. Wheat remains in a crowded short. In metals, funds sold gold and bought silver. In energy, funds bought WTI crude oil, heating oil and gasoline, and reduced their natural gas short.


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. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Reuters.com: Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  5. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid