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Hedge funds favour grains to soft commodities - but will it last?

Posted on 30 November 2016 by VRS  |  Email |Print

Hedge funds, despite lifting bullish bets on cotton to a three-year, favoured grains to soft commodities – so much so that many investors saw scope for fresh selling in the likes of corn.
Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by 55,896 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Index Funds, Quants and Hedging

Posted on 29 November 2016 by VRS  |  Email |Print

The consensus that Index Funds Are Good is pretty universal, but also kind of boring. It turns out that the right way to invest is to … do nothing? To do exactly what everyone else does? To just stop paying attention? Indexing is low on action, low on personality, low on fees, low on excitement. It is good for you, but a bit bland.
The Index Funds Are Bad camp, on the other hand, is full of wacky fun. There is, for instance, the view that index funds are illegal because they violate antitrust laws, a view that is so counterintuitive that its proponents insist that they don’t mean it………………………………………..Full Article: Source

As OPEC looms, hedge funds more cautious on oil: Kemp

Posted on 23 November 2016 by VRS  |  Email |Print

Hedge funds have taken a more cautious stance on oil prices amid a flurry of diplomatic activity aimed at securing a production-limiting deal among OPEC members by the end of the month. The funds cut their combined net long position in the three major Brent and West Texas Intermediate (WTI) futures and options contracts by just 3 million barrels to 422 million barrels in the week ending Nov. 15.
The much smaller reduction came after fund managers cut net long positions by a record 149 million barrels the previous week, according to an analysis of data from regulators and exchanges………………………………………Full Article: Source

As China punishes speculators, billions of dollars exit commodities

Posted on 21 November 2016 by VRS  |  Email |Print

Billions of dollars in funds exited China’s commodities futures in less than a week, the most since February, as regulators curbed speculative trading in a display of Beijing’s power to swiftly cool markets.
But the large-scale retreat may prove to be temporary as cash-rich Chinese retail investors could soon return to jolt commodities futures, and given China’s size, again cause ripples in global markets. Many of these speculators have little investment experience but have loads of cash to gamble with, a combination that often leads to wild price swings……………………………………Full Article: Source

Hedge funds hiding out in ‘gold’ as US poll fears grip market

Posted on 08 November 2016 by VRS  |  Email |Print

To understand how fearful investors are of all the wild cards in Tuesday’s US presidential election, just take a look at the gold market. Hedge funds are piling into the perceived safety of bullion, increasing their wagers that the metal will rally for a second straight week, US government data showed on Friday.
That marked the first consecutive gain since July as money managers pushed their holdings to a one-month high. Anxiety has gripped the financial markets with opinion polls signalling a tightening race between Democrat Hillary Clinton and Republican Donald Trump, who showed signs of strength with early votes cast in Iowa and Ohio………………………………………Full Article: Source

Hedge funds cut bearish bets in grains and oilseeds

Posted on 01 November 2016 by VRS  |  Email |Print

Demand in soyabeans and end of US harvest offer support for agricultural commodities. Hedge funds and other speculative investors have cut their bearish bets in grains and oilseeds, as firm demand in soyabeans and the end of the US harvest provide support for agricultural commodity prices.
Speculative net positions in grains and oilseeds in the week ending October 25 turned positive for the first time since July, according to data from the US Commodities and Futures Trading Commission…………………………………….Full Article: Source

Hedge Fund Manager Sees $1,400 Gold By 2017

Posted on 25 October 2016 by VRS  |  Email |Print

Gold prices are expected to push past $1,400 an ounce in 2017, according to one billion-dollar hedge fund. In a recent interview with Bloomberg, Mark Mobius, executive chairman of Templeton Emerging Markets Group – which has assets under management of more than £1.6 billion — said that he could see gold prices rallying 15% in 2017 as he expects the Federal Reserve to keep interest rates low next year.
“The Fed is going to increase the rates by a little bit but not excessively and there is no guarantee that a rise in interest rates will put people off. A lot will depend on the real rates,” said Mobius, in the interview, on the sidelines at an event in Mumbai, India…………………………………..Full Article: Source

Commodities funds may offer inflation hedge

Posted on 21 October 2016 by VRS  |  Email |Print

If you look in the average investor’s closet of anxieties, inflation is probably the biggest, scariest monster of them all. And increasingly, investors have been looking at commodities funds as a way to offset the effects of inflation and diversify their portfolios.
If you’re considering adding a commodity fund to a client’s portfolio, you have your work cut out for you. “The biggest problem is that there’s no real agreement as to what a commodity fund should look like, and that’s a real problem,” said Dave Nadig, director of exchange-traded funds at FactSet Research…………………………………….Full Article: Source

Green Climate Fund approves $745m funding round

Posted on 18 October 2016 by VRS  |  Email |Print

International agency signs off on 10 low carbon projects capable of mobilising $2.6bn of investment. The high profile Green Climate Fund has signed off on $745m of low carbon investment, taking funding from the agency past the $1bn mark.
The latest meeting of the GCF, the international agency formed to mobilise low carbon investment in developing countries as part of the Paris Agreement, approved investments in 10 projects spread across 27 countries, which combined boast a total value of $2.6bn…………………………………..Full Article: Source

Saudi Arabia squeezes hedge funds with bearish bets on oil: Kemp

Posted on 11 October 2016 by VRS  |  Email |Print

Saudi Arabia successfully confounded hedge funds with bearish views on oil by reaching an unexpected production deal with OPEC members in Algiers on Sept. 28, sending prices soaring in a short-covering rally.
Hedge funds and other money managers increased their net long position in the three main Brent and WTI futures and options contracts by a record 142 million barrels over the seven days ending on Oct. 4. Hedge funds’ net position surged from 471 million barrels on the eve of the OPEC meeting to 612 million barrels seven days later………………………………….Full Article: Source

Hedge funds came prepared for last week’s gold price plunge

Posted on 11 October 2016 by VRS  |  Email |Print

Gold has been on the defensive since last Tuesday when heavy selling saw it crash through $1,300 an ounce to a level last seen before the Brexit vote gave it a new leg up. For the week gold lost more than 5% with Friday US jobs numbers pushing the metal below $1,250 for the first time since the beginning of June.
Gold touched a two-year high in July around $1,380 an ounce and year to date the metal is still managing gains of nearly 20% or more than $200 an ounce, one of its best annual performances since 1980………………………………….Full Article: Source

Gold Investors Have Doubled Their Money in 2016

Posted on 07 October 2016 by VRS  |  Email |Print

Commodity funds have gained 125% this year, making them the best performing sector of 2016. Thanks to a recovery in the oil price and a low interest rate environment, the top funds year to date are all commodity related.
Oil is not the only commodity up since the start of the year – the gold price has rallied 20%, as concerns about the impact of Brexit have seen investors rush to the perceived safe haven, and several precious metals funds are feeling the benefits……………………………………….Full Article: Source

Hedge Funds Hurry Back Into Gold, Silver Post-Fed Meeting

Posted on 04 October 2016 by VRS  |  Email |Print

Hedge funds were quick to jump back into their bullish gold and silver bets after the Federal Reserve left interest rates unchanged and lowered its long-term forecasts at its last meeting, according to the latest data from the Commodity Futures Trading Commission.
The latest trade data shows that bullish speculative interest in gold is back near its all-time-highs, after hitting their lowest point in three months. The disaggregated Commitments of Trader report (COT), for the week ending Sept. 27, showed money managers increased their speculative gross long positions in Comex gold futures by 36,032, contracts to 282,151……………………………………….Full Article: Source

Gold price: Hedge funds, ETF investors show buying fatigue

Posted on 27 September 2016 by VRS  |  Email |Print

Gold touched a two-year high in July around $1,380 an ounce and year to date the metal is up 26% or close to $280 an ounce, one of its best annual performances since 1980. But there are signs that buying fatigue has set in for both hedge funds active on the derivatives market and institutional and retail buyers of physically-backed gold exchange traded funds.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data……………………………………..Full Article: Source

Commodity funds in fee ‘bonanza’ as assets soar 46%

Posted on 23 September 2016 by VRS  |  Email |Print

Commodity funds and ETFs have seen assets soar 46 per cent since the end of last year creating a bonanza for providers due to the high fees they charge on the niche products, Cerulli Associates analysis reveals.
Inflows are reaching the ‘highest level in years’ hitting €5bn year to date following €1.5bn inflows in July, Cerulli says. Inflows are attributed to gold prices rising 19 per cent over the period, as well as unsettled markets………………………………………Full Article: Source

Can ETFs Outperform Hedge Funds?

Posted on 16 September 2016 by VRS  |  Email |Print

What can exchange-traded funds (ETFs) provide that hedge funds cannot? Some analysts suggest that ETFs of a particular type boast minimal problems with illiquidity, plus a position in the market that is not overcrowded.
And, above all, the reduced fee structure and the relative certainty of positive returns may be more attractive to investors, particularly those who are averse to the high stakes involved with putting money in hedge funds. Unlike a hedge fund, an ETF tracks a particular market index, replicating market performance………………………………………..Full Article: Source

3 Commodity Plays to Pick Up Now

Posted on 13 September 2016 by VRS  |  Email |Print

The specter of higher interest rates spooked investors Friday. The usual cohort of rate-sensitive assets (bonds, REITS, utilities, staples) suffered tremendously during the terror. Commodities were also one of the hardest hit areas, with gold and silver tumbling all day long.
Higher rates dampen the appeal of non-yielding assets like the yellow metal and its high-beta cousin. Friday’s bloodbath also ushered in the long-awaited return of volatility. As is usually the case after a long absence, the sudden drop was as surprising as it was large. Despite the broad swath of destruction wrought on charts across the land, opportunity lurks in a few select areas………………………………………..Full Article: Source

Global markets being jolted by systematic funds

Posted on 12 September 2016 by VRS  |  Email |Print

Volatility is back and it is back with a bang. After an extremely quiet August, where Rupee traded within a very tight range against US Dollar, we are seeing a good bit of two way movement in the pair.
A string of weak US economic reports had initially caused reversal in expectation for a Fed hike in September and a result USD had dropped sharply from 67.00 levels to all way down to 66.32 levels on spot. However, the party in Rupee did not last long as strong intervention from RBI and later a sharp reversal in risk assets globally, pushed USDINR back towards 66.70 levels………………………………………..Full Article: Source

Volatile gold demand tarnishes U.S. commodity fund sales

Posted on 08 September 2016 by VRS  |  Email |Print

Turning fortunes for gold pushed withdrawals from U.S.-based commodity funds to their highest levels since April, Investment Company Institute data for the latest week showed on Wednesday. Investors pulled $601 million from those mutual funds and exchange-traded funds during the week through Aug. 31, the trade group said, though many gold funds have seen a rebound in recent days.
The fickle buying and selling of funds, such as SPDR Gold Shares, comes after some U.S. monetary policymakers suggested they favored raising interest rates sooner rather than later, though weak economic data have damped their case………………………………………..Full Article: Source

Hedge Funds Are Uprooting Agriculture Futures Contracts

Posted on 07 September 2016 by VRS  |  Email |Print

Eight times in the nine weeks leading up to August 15, 2016, hedge fund managers reduced their positions in agricultural futures, with cotton, wheat and corn particular sell-off targets.
For guidance, hedge funds may be looking to Managed Money, a benchmark for commodity speculators, which recently slashed its net long position in the “top 13 U.S.-traded agricultural commodities, from cotton to cattle, by 8,255 contracts in the week to last Tuesday,” according to Agrimoney.com, siting data from the Commodity Futures Trading Commission………………………………………..Full Article: Source

Why Hedge Funds are Mass-Selling Agricultural Futures

Posted on 07 September 2016 by VRS  |  Email |Print

Agrimoney.com has reported that net long positions on key agricultural futures across the hedge fund industry have declined significantly in the past two to three months, down from roughly 600,000 contracts to 367,000 contracts in play.
Hedge funds across the country have repeatedly sold off stakes in corn, wheat, and cotton in particular during this time period. A number of factors may be contributing to this sudden shift in approach, including an important move from a leading commodity speculator, questions about the Federal Reserve’s possible interest rate change in the months to come, and environmental and seasonal factors in the agricultural industry that have affected supply and demand………………………………………..Full Article: Source

Hedge funds slash bullish gold price bets again

Posted on 06 September 2016 by VRS  |  Email |Print

Large scale gold futures and options speculators or “managed money” investors such as hedge funds were wrong-footed by the negative employment and wage numbers and had been positioning themselves for further declines in the gold price ahead of the Dept of Labor data.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data………………………………………..Full Article: Source

Gold Fund Holdings Rebound From Biggest Two-Day Drop This Year

Posted on 06 September 2016 by VRS  |  Email |Print

Gold steadied as holdings in bullion-backed funds rebounded from the largest two-day drop this year. Investors bought 0.6 metric ton of the metal through exchange-traded funds as of Friday, when prices rose as weaker-than-expected U.S. jobs data cut expectations that the Federal Reserve will raise interest rates this month.
They sold 16.1 tons in the two days before that, the most since December. Gold had surged as much as 30 percent this year as the Fed refrained from further tightening and the U.K.’s Brexit vote boosted demand for a haven………………………………………..Full Article: Source

Fund Review: Energy

Posted on 06 September 2016 by VRS  |  Email |Print

Energy funds have been struggling to deliver returns against a turbulent backdrop. Oil prices were on a downward trend by the end of 2015 and have been fluctuating this year before settling below $50 a barrel.
The turbulence dates back to November 2014, notes Robert Crayfourd, portfolio manager of the New City Energy investment trust, “when Opec decided it would no longer act as the market stabiliser”. In Indosuez Wealth Management’s analysis and asset allocation paper for the third quarter of 2016, it points out the slide in the price of West Texas Intermediate (WTI) oil reached a low of $26.2 a barrel on February 11, resulting in a sharp drop in US production………………………………………..Full Article: Source

Hedge funds bail on copper as Goldman sees ‘supply storm’

Posted on 30 August 2016 by VRS  |  Email |Print

Copper is stuck in a rut. While other metals have shined in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world’s biggest user, is slowing just as Goldman Sachs Group predicts a “supply storm” will hit the market and drag prices even lower.
Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a ten-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank said in a report August 24. ……………………………………….Full Article: Source

Hedge Funds Bail on Copper as Goldman Predicts ‘Supply Storm’

Posted on 29 August 2016 by VRS  |  Email |Print

Copper is stuck in a rut. While other metals have shined in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world’s biggest user, is slowing just as Goldman Sachs Group Inc. predicts a “supply storm” will hit the market and drag prices even lower.
Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a 10-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank AG said in a report Aug. 24. The hoard underscores why money managers are betting on more price declines………………………………………..Full Article: Source

Hedge Funds Are Shrinking, Not Dying

Posted on 26 August 2016 by VRS  |  Email |Print

Ouch! Actually, that didn’t hurt so much. News that hedge funds suffered redemptions of $25.2 billion last month may translate into some individual shops closing, but for the industry as a whole, it’s a drop in the ocean.
The bad news is that this latest bloodletting won’t be a cure. Managers have a clouded future to contemplate.For hedge funds worldwide, July was the worst month for redemptions since February 2009, according to an eVestment report………………………………………..Full Article: Source

Precious metal funds dominate after gold price surge

Posted on 25 August 2016 by VRS  |  Email |Print

A gold price surge has pushed precious metal funds to the top of this year’s performance charts, reports the Financial Times. Having fallen by 40 per cent from a 2011 peak of $1,920 an ounce in the closing months of 2015, gold has risen by 25 per cent so far this year to above $1,330 an ounce, defying predictions it would tumble to below $1,000.
For brief periods this summer, it even spent time above $1,360 an ounce. Other precious metals have also performed well. Funds that in one way or another seek exposure to these hard commodities now make up “all 10 best-performing mutual funds in both the US and Europe”………………………………………..Full Article: Source

Commodities on upswing in FY17 as funds return

Posted on 23 August 2016 by VRS  |  Email |Print

International commodities markets are on a boil since beginning of the current financial year and most commodities are up be that metals, crude oil or agri commodities. While so far US has refrained from raising rate after last December hike which has attracted global financial investors to commodities again, the decision will continue to be a biggest headwind for commodity rally to continue.
Bloomberg all commodity index is up 9.4 per cent from April while LME metal index (up 6.3 per cent) and Bloomberg agri index (4.6 per cent) has followed………………………………………..Full Article: Source

Hedge funds turn record bullish on soft commodities

Posted on 16 August 2016 by VRS  |  Email |Print

Hedge funds boosted bullish bets on soft commodities to record levels, holding massive long positions in New York-traded sugar and cotton, according to data from the Commodity Futures Trading Commission (CFTC) regulator.
Managed money, a proxy for speculators, lifted its net long position on the main New York traded soft commodities, arabica coffee, cocoa, raw sugar, and cotton, to the tune of 28,684 lots, in the week to last Tuesday. This brings the net long across softs – the extent to which long positions, which benefit when prices rise, outnumber short bets, which profit when values fall – to 401,379 lots………………………………………..Full Article: Source

Hedge Funds Make Record Bearish Pound Bets on Brexit Pessimism

Posted on 15 August 2016 by VRS  |  Email |Print

Hedge funds have made their biggest bearish bet on the pound before U.K. data due this week that will show the early effects of the nation’s decision to leave the European Union. Sterling reached a one-month low Monday ahead of reports on inflation, retail sales and unemployment benefit claims for July, which will provide more detail on how the economy is faring after the June 23 referendum.
The pound had its worst day on record when the vote for Brexit became clear, while losses deepened this month following the Bank of England’s decision to cut interest rates and boost its stimulus plan………………………………………..Full Article: Source

Hedge funds double down on bets against oil

Posted on 11 August 2016 by VRS  |  Email |Print

Oil bears are betting the recent rally is over. Hedge funds nearly doubled their bets against West Texas Intermediate crude oil over the last month as prices pulled back from their June highs in the low $50s, according to Bloomberg data.
Short interest — betting that the price will fall further — in “black gold” is even greater than it was in January, when the price of oil plunged to the low-$30s. Bearish oil bets likely reflect traders’ belief that the supply glut will continue weighing on the market, despite chatter from some oil-rich nations about setting new limits on production to pump up prices………………………………………..Full Article: Source

The best and worst performing funds in the month after Brexit

Posted on 05 August 2016 by VRS  |  Email |Print

Many investors were quick to take advantage following the EU referendum result, but there were wide disparities in performance between different sectors and funds in the month that followed. Here, Telegraph Money looks at the best and worst performers over the course of July, using analysis from Wealth Club, an investment service.
According to the research, technology and telecoms was the best performing sector, returning 9.5pc over the course of the month, largely thanks to the £24.3bn takeover of Arm Holdings, the chip designer, by a Japanese company at a premium of almost 50pc to its pre-bid share price………………………………………..Full Article: Source

Commodity funds generate poor returns as oil prices plummet

Posted on 04 August 2016 by VRS  |  Email |Print

As oil prices plunged by more than a fifth in less than two months, returns on natural resources funds have turned negative, wiping out profits they made earlier this year. Some 50 fund products incorporated in South Korea, investing in commodities and stocks of natural resource-related companies, saw their average rate of returns sinking to minus 2.11 percent in the past one month, according to local financial data provider FnGuide.
The commodity funds showed positive performance over the first six months of this year, with average returns of 19.95 percent after posting record-low results in 2015 due to free fall in oil prices. But they have dived back down to retract all the gains………………………………………..Full Article: Source

Fund Review: Gold

Posted on 02 August 2016 by VRS  |  Email |Print

Gold is often seen by many investors as a safe haven, and with the UK’s recent vote to leave the EU adding to economic uncertainty, it is little wonder the asset class’s popularity has surged.
Year to date, gold’s price has moved steadily higher, with figures from BullionVault.com showing the gold price at a low of $1,054 (£796) per ounce as of December 1 2015, jumping to roughly $1,366 per ounce as of July 8 2016………………………………………..Full Article: Source

Hedge Funds Raise Bearish Pound Bets to Record Before BOE

Posted on 02 August 2016 by VRS  |  Email |Print

Hedge funds and other large speculators have boosted their bearish bets against the pound to the most since records began in 1992, according to U.S. Commodity Futures Trading Commission data. A U.K. report Monday suggested they may be right.
Manufacturing shrank more in July than initially forecast, adding to speculation that the Bank of England will cut interest rates on Aug. 4 amid signs that Britain’s decision in June to leave the European Union is hitting the U.K. harder than previously envisaged………………………………………..Full Article: Source

Investors eye commodities funds

Posted on 01 August 2016 by VRS  |  Email |Print

Commodities funds ended June in positive territory up +2.72 percent, according to performance data from eVestment - a rebound for the funds which has persisted throughout 2016. Asset flows have been consistent over the past 9 months as well, suggesting that investors are once again interested in commodities funds even after the wild price swings in commodity prices over the past few years. For investors looking to cash in, being defensively positioned will be key, says Jason Lejonvarn, Managing Director, Mellon Capital Management.
“The main issue with the commodities benchmark is that it forces you to be long all commodities. But some commodities have big drawdowns so we want the opportunity to be able to go long and short,” Lejonvarn tells Opalesque in an interview. Mellon Capital offers a long/short commodities strategy that he says the firm is offering as a way of helping investors avoid some of the historical pitfalls common to commodity funds………………………………………..Full Article: Source

Hedge funds suffer $20.7bn net outflows in June

Posted on 27 July 2016 by VRS  |  Email |Print

Industry endures its longest sequence of quarterly withdrawals since 2009. Global hedge funds suffered net outflows of $20.7bn in June, as investors pulled more of their money out despite improved performance from most managers.
After inflows in April and May, the withdrawals took total aggregate net redemptions for the second quarter to $10.7bn, according to data from eVestment, marking the third consecutive quarter in which money has left the sector………………………………………..Full Article: Source

Here’s Why Some Huge Hedge Funds Think Oil Prices Could Plunge Again

Posted on 26 July 2016 by VRS  |  Email |Print

Hedge funds have been liquidating their former record bullish position in crude futures and options putting downward pressure on oil prices in recent weeks. But now the liquidation of old long positions is being replaced by the establishment of new short positions as fund managers try to capitalize on the downward cycle in prices.
Hedge funds and other money managers cut their net long position in Brent and WTI futures and options by 31 million barrels to 453 million in the week ending on July 19………………………………………..Full Article: Source

Hedge funds sell ags again - but wheat shorts ‘in trouble’

Posted on 26 July 2016 by VRS  |  Email |Print

Hedge funds extended their cut in bullish positioning on agricultural commodities to the longest of 2016, although ideas grew on wheat at least that the extent of short bets may not be sustainable, boding well for prices.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by 56,935 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Fund return hit by commodities, strong dollar

Posted on 25 July 2016 by VRS  |  Email |Print

China Investment Corporation announced on Friday that its overseas investments generated a net return of negative 2.96 percent in dollar terms in 2015, falling from a positive 5.47 percent return for 2014, due to volatilities in international financial markets and foreign exchange losses triggered by an appreciating dollar.
A father and his daughter take part in the riddle-guessing contest at a KFC outlet in Zhengzhou, capital of Henan province, during this year’s Lantern Festival. The $814 billion Chinese sovereign wealth fund posted a net cumulative annualized return of 4.58 percent since its establishment in September 2007, compared with 5.66 percent in 2014………………………………………..Full Article: Source

Windermere’s mining hedge fund geared for bull cycle, up 122% YTD

Posted on 25 July 2016 by VRS  |  Email |Print

Benedicte Gravrand, Opalesque London: Precious metals such gold, silver, platinum and palladium, have not exactly shined in the past few years, but have started to experience recoveries so far this year. And the few funds out there investing in precious metals related equities are reaping the profits.
Windermere Capital’s mining fund returned 93% in the second quarter of this year, and is up 122% YTD. Blackrock’s World Mining Fund A2 is recovering with a YTD return of 55%. Sprott Asset Management’s Gold & Precious Minerals Fund is up 97% YTD and its Hedge Fund L.P. II up 84%.Full Article: Source

Fund Review: Agriculture

Posted on 19 July 2016 by VRS  |  Email |Print

Commodity markets have seen something of a rebound in recent months and agriculture is no exception. The soft commodity space is varied, ranging from cocoa to coffee to sugar, and while the focus has been on oil, gold and industrial metals and the effect on these of issues such as China’s slowing growth, agricultural commodities appear to have been somewhat under the radar.
In the past 12 months the broad S&P GSCI Commodity index has struggled, falling 6.4 per cent in the year to July 6 2016, yet on a sub-sector basis there are soft commodities that have delivered strong returns………………………………………..Full Article: Source

Hedge funds’ sell-off in grains raises hopes for corn, wheat rallies

Posted on 19 July 2016 by VRS  |  Email |Print

The extent of hedge funds’ selldown in grains, while continuing to raise bullish bets on soft commodities, raised ideas that the worst could be over for liquidation in corn and wheat– if not for soybean derivatives.
Managed money, a proxy for speculators, slashed its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to cocoa, by 114,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Hedge funds accelerate ag selldown - boding well for wheat prices?

Posted on 12 July 2016 by VRS  |  Email |Print

Hedge funds accelerated their rate of selling in grains, fuelled by a hike in bearish bets on Chicago wheat to near-record levels – provoking ideas that a rout which has taken prices to 10-year lows may be spent.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by more than 130,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Oil Funds Hold Down Risk, Eye Volatility After Weak First Half

Posted on 11 July 2016 by VRS  |  Email |Print

Oil—and the hedge funds invested in it—are still uncertain. Oil’s big rebound in the first half of the year was a squandered opportunity for most hedge funds with positions in crude, and a surge in volatility is likely to make it harder for them to call the market in the second half.
The majority of hedge funds in the oil universe posted sparse returns in the six months to June even as crude rebounded from 12-year lows to post a 30% gain………………………………………..Full Article: Source

Commodities Rally Is Fizzling Out as Merchant Fund Sees Oil Drop

Posted on 08 July 2016 by VRS  |  Email |Print

The best is probably over for commodities this year as the Brexit vote adds risks to global growth and oil is set to retreat, according to the Merchant Commodity Fund, which returned 9 percent in the first half.
The fund, run by ex-Cargill Inc. employees Doug King and Michael Coleman, has changed its commodities outlook to neutral from bullish earlier this year. The U.K. vote to exit the European Union has led to uncertainty and growth remains lackluster in top user China, King said. Oil may drop to $40 to $45 a barrel within three weeks as stockpiles fall more slowly than expected, he said………………………………………..Full Article: Source

Barclays launches £100m fund to boost UK agriculture

Posted on 08 July 2016 by VRS  |  Email |Print

Barclays is inviting Cambridge and East of England companies to pitch into a new £100 million UK agricultural funding initiative. The bank is making that amount available in loans to boost the sector, to help future-proof the industry for the next generation, improve efficiency and create additional revenue streams to limit effects of market volatility.
The fund is available to farmers looking to modernise their infrastructure, helping to streamline their farming processes and increase efficiency………………………………………..Full Article: Source

Hedge Funds Push Gold Bullish Bets To Record Level

Posted on 29 June 2016 by VRS  |  Email |Print

Hedge funds and money managers were buying gold as prices were dropping, ahead of the British referendum on the future of its EU membership, according to the latest trade data from the Commodity Futures Trading Commission. Friday’s report showed that gold’s speculative net length reached historic highs last week.
The disaggregated Commitments of Trader report (COT), for the week ending June 21, showed money managers increased their speculative gross long positions in Comex gold futures by 17,436,contracts to 274,936. At the same time, short bets fell by 3,732 contracts to 24,528. The latest data shows the gold market is net long by 250,408 contracts………………………………………..Full Article: Source

Investors Keep Piling Into Gold Funds

Posted on 28 June 2016 by VRS  |  Email |Print

As the price of gold has soared, funds that track the precious metal are also reaching new heights. The two largest gold funds, SPDR Gold Trust and iShares Gold Trust, now own more physical gold combined than all but seven nations, according to analysis from Convergex.
With about 1,037 metric tons altogether, the amount of gold in the two funds outpaces reserves of notable holders such as the European Central Bank and Saudi Arabia. Following Britain’s vote to exit the European Union, the third largest U.S. gold ETF, ETFS Physical Swiss Gold Shares, announced on Monday that its assets have surpassed $1 billion………………………………………..Full Article: Source

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