Komfie Manalo, Opalesque Asia:
Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor.
The report also added that equity long/short market exposure decreased to 34% net long from 37% net long; above the 35-40% benchmark level, while macro funds reduced their long exposure in S&P500 and NASDAQ. "They increased their long exposure in Commodities. They also increased USD exposure and decreased 10-yr short exposure. Additionally, they reduced their large cap tilt. Overseas, they increased their emerging market long exposure," the report said.
Key takeaways this week
- Speculators decrease S&P500 positioning to net short and increased Russell shorts. MAA and technicals suggest further selling.
Gold net long position close to one year high, silver sold for fourth week. Gold buying and silver selling are likely to continue.
Crude net long positioning reduces for seventh consecutive week, MAA and technicals recommend remaining bearish.
Hedge funds are up 0.40% for the week as CTA advisors top hedge fund indices.
The report also cited data from the Commodity Futures Trading Commission showed that large speculators sold S&P500 to net short. They also decreased NASDAQ longs and increased Russell shorts. MAA suggests S&P500 and Russell shorts may increase and tech......................
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