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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

Investors pouring billions into passively managed funds

Posted on 28 June 2016 by VRS  |  Email |Print

Cheap, flexible and tax-efficient. The three big advantages of passively managed exchange-traded funds continue to drive the migration of investment assets from actively managed mutual funds to ETFs.
Many industry observers expected that increased market volatility would push investors back to active managers, but the latest asset-flow stats from research firm Morningstar suggest not. In May, $18.7 billion flowed out of actively managed U.S. equity funds and $8.1 billion flowed into passively managed ones that track an index — largely ETFs………………………………………..Full Article: Source

Hedge funds cooler on grains - but in softs, bullish bets at 8-year top

Posted on 28 June 2016 by VRS  |  Email |Print

Hedge funds’ love affair with grains has began to cool, even as they raised bullish soft commodity betting to a six-year high, leaving them vulnerable to the market turbulence which has followed the UK vote to quit the EU.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to hogs, by more than 60,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Hedge Funds Win World-Beating Rally With Record Gold Holdings

Posted on 27 June 2016 by VRS  |  Email |Print

Unlike most of the world, gold investors got it right when it came time to betting on the Brexit vote. They were rewarded with a world-beating rally. Hedge funds boosted their bets on price gains for bullion to an all-time high just two days before U.K. voters took to the polls and decided to leave the European Union, sending global markets roiling.
Gold futures climbed to a two-year high after the referendum. The metal’s wild ride isn’t over yet. Prices could jump another 7.7 percent by the end of the year, a Bloomberg survey showed………………………………………..Full Article: Source

Oil prices under pressure as hedge funds adjust positions: Kemp

Posted on 21 June 2016 by VRS  |  Email |Print

Hedge funds cut their net long position in the main crude futures and options contracts by 63 million barrels, 10 percent, in the week to June 14, as the rally in oil prices showed signs of running out of steam.
The one-week reduction in the net long position was the largest since July 2014, according to an analysis of data published by the U.S. Commodity Futures Trading Commission and the Intercontinental Exchange. Hedge funds and other money managers cut their combined net long position in the three main Brent and WTI futures and options contracts from a near-record 633 million barrels to 570 million………………………………………..Full Article: Source

Hedge funds lift bullish ag bets to 2-year top - raising scope for selling

Posted on 21 June 2016 by VRS  |  Email |Print

Hedge funds hiked their net long in agricultural commodities to the highest in more than two years, led by the most bullish positioning in softs since 2008 – but providing ammunition for the selling which set in on Monday.
Managed money, a proxy for speculators, raised by more than 107,000 contracts its net long position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Hedge Funds Turn Most Bullish on Russian Ruble Since 2013

Posted on 21 June 2016 by VRS  |  Email |Print

Hedge funds boosted bullish bets on the ruble before the Federal Reserve meeting last week and after Russia’s central bank resumed monetary easing, data from the U.S. Commodity Futures Trading Commission show.
Speculators increased their long positions to 14,538 futures in the week ended June 14 from 8,086 contracts a week earlier. While they also doubled bets against the ruble, their net position representing the difference between the longs and the shorts reached the highest since February 2013………………………………………..Full Article: Source

Gold price bulls kept faith as hedge funds wavered

Posted on 17 June 2016 by VRS  |  Email |Print

A big factor supporting the gold rally – the best start to the year in more than a decade – have been investors in physical gold-backed exchange traded funds. Global vault holdings have swelled to 1,883 tonnes, the highest since December 2013 following net inflows of more than 400 tonnes so far this year – a dramatic reversal of the trend during the last three years when a staggering 1,198 tonnes left funds.
As the chart shows the more than 6% decline in the price of gold in May did not deter ETF investors from picking up more metal and doubling down on their conviction of a rising gold price………………………………………..Full Article: Source

Should Investors Buy Into Alternative Assets Like Hedge Funds?

Posted on 15 June 2016 by VRS  |  Email |Print

Hedge funds and the less-pricey liquid alternative funds that attempt to mimic them have generally underperformed thus far in 2016. Walter Davis, alternative investments strategist at Invesco (IVZ) , said they started off well when the market dropped to start the year, yet have foundered since stocks turned up in mid-February.
“It’s been a tough environment because there has been volatility and a lack of sustained moves in the market,” said Davis. “It’s just been chopping around.”……………………………………….Full Article: Source

Commodity Funds Outperform for First Time in Years

Posted on 14 June 2016 by VRS  |  Email |Print

Year-to-date gains in core commodity indexes are two to three times the gains in broad U.S. bond and stock indexes. For the first time in years, commodities are doing something they haven’t done in a while: They’re outperforming major asset classes like stocks, bonds and real estate.
After several years of consecutive annual losses for major commodity benchmarks, a turnaround in the beleaguered group appears to be in the works. Since the start of the year, the Thomson Reuters/CoreCommodity CRB Index (CRY) has climbed 9.5% in value compared to a gain of just 3.6% for the total U.S. stock market (VTI), 4.4% for the total U.S. bond market (BND) and 7% for global real estate equities (REET)………………………………………..Full Article: Source

Hedge funds hike bullish ag bets to 2-year high, amid ‘inflow of money’

Posted on 14 June 2016 by VRS  |  Email |Print

Hedge funds hiked their bullish bets on ags to the highest in two years amid the investor influx which drove prices to the highest in 17 months – although the upbeat positioning may spell bad news for wheat futures.
Managed money, a proxy for speculators, raised by nearly 170,000 contracts its net long position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Investors pile into quant funds

Posted on 13 June 2016 by VRS  |  Email |Print

Investors may be fleeing hedge funds in droves but they are still allocating money to technology-driven strategies, despite more than a year of lacklustre performance. The move suggests investors are looking to position themselves for increased market swings or a possible crash as “quants”, which use computer algorithms to predict market moves, are not correlated to other strategies.
The number of institutional investors who allocated funds to the most popular sub-strategy of quant known as commodity-trading advisers, or CTAs, hit a record of 1,067 in 2015, an addition of 50 from the previous year, according to the data provider Preqin………………………………………..Full Article: Source

Don’t leave energy funds, industry group says

Posted on 08 June 2016 by VRS  |  Email |Print

A growing move in the United States to divest from oil and gas investments is a knee-jerk reaction that could jeopardize long-term values, an energy group said. The American Petroleum Institute, which represents the interests of the U.S. oil and natural gas sector, responded to word that the District of Columbia Retirement Board opted to divest from the industry.
Even though a lower price for crude oil has cut into the budgets of U.S. energy producers, the API said the country is still a world leader in oil and gas production and moving funds out of the industry may be short-sighted………………………………………..Full Article: Source

Speculators’ bullish ag bets hit 2-year high - as algo funds move in

Posted on 07 June 2016 by VRS  |  Email |Print

Speculators lifted bullish positioning on agricultural commodities to the highest in nearly two years, as algorithmic funds flooded in, into sugar at least, – while coffee and wheat caught out investors making bearish bets.
Managed money, a proxy for speculators, raised by more than 64,000 contracts its net long position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Commodity hedge funds get $5b embrace on oil gain

Posted on 06 June 2016 by VRS  |  Email |Print

The rally in oil has given a fillip to long-suffering commodities hedge funds. After four years of haemorrhaging cash and clients, managers are once again making money and winning back investors. About $5 billion has coursed into the funds in 2016, with the first quarter seeing the biggest inflows since 2009, according to data compiled by eVestment.
Investors are being drawn by gains such as the more than 18 per cent increase reported in a letter to clients by Stuart Zimmer’s ZP Energy Fund in New York and the 12.7 per cent posted by oil trader Pierre Andurand’s $1.1 billion Commodities Master Fund in London. Officials at the funds declined to comment………………………………………..Full Article: Source

Three funds to cash in on a potential bull market in commodities

Posted on 03 June 2016 by VRS  |  Email |Print

Commodities have come flying back so far in 2016 following a sustained period of hefty price falls. Various reasons have been given for this phenomenon such as a rebalancing in the supply/demand dynamic in the space, signs of an inflationary environment and very low valuations.
Whatever the drivers have been, FE data shows the Bloomberg Commodity index is up 12 per cent so far this year with certain individual commodity prices up significantly more. Of course, some will no doubt think that given the pace of the recent rally the best returns have now been made. ……………………………………….Full Article: Source

Commodity Hedge Funds Get $5 Billion Embrace on Oil Gain

Posted on 01 June 2016 by VRS  |  Email |Print

The rally in oil has given a fillip to long-suffering commodities hedge funds. After four years of hemorrhaging cash and clients, managers are once again making money and winning back investors.
About $5 billion has coursed into the funds in 2016, with the first quarter seeing the biggest inflows since 2009, according to data compiled by eVestment. Investors are being drawn by gains such as the more than 18 percent increase reported in a letter to clients by Stuart Zimmer’s ZP Energy Fund in New York and the 12.7 percent posted by oil trader Pierre Andurand’s $1.1 billion Commodities Master Fund in London……………………………………….Full Article: Source

Funds Step Back From Gold Before Yellen Says Rate Rise Is Coming

Posted on 30 May 2016 by VRS  |  Email |Print

Hedge funds decided to take a breather from gold just before Janet Yellen gave investors more reason to ditch the precious metal.
After a roaring start to the year, the excitement over bullion has dissipated this month on increasing expectations that the Federal Reserve is getting ready to raise U.S. interest rates again as the economy improves. Last week, money managers who have been bullish since January reduced their wagers on a price rally by the most this year………………………………………..Full Article: Source

A 107pc return in six months: Gold funds storm 2016 performance tables

Posted on 27 May 2016 by VRS  |  Email |Print

Specialist gold funds have clocked up incredible gains since the start of the year, with some doubling investors’ money. The rally, thanks to a 20pc rise in the gold price, puts them among the best performers of the 3,500 or so collective investments available to British investors.
Investec Global Gold, MFM Junior Gold, Ruffer Gold and Blackrock Gold & General are all among the top performers, while WAY Charteris Gold & Precious Metal and the Smith & Williamson Global Gold & Resources fund have also delivered stand-out performance………………………………………..Full Article: Source

Fund Selector: Is the risk worth the reward?

Posted on 24 May 2016 by VRS  |  Email |Print

My interest in commodities was recently piqued after receiving some emails from well-meaning individuals within the fund sales community, pointing out that their commodity funds were, by far, the best performing funds year to date and I should, of course, be assessing these portfolios.
In my view, a healthy dose of skepticism is required for those undertaking fund research, so a little more digging (excuse the pun) was required. While the year-to-date performance of these products is undoubtedly stellar, it does not make up for the horrific performance produced by the asset class over any meaningful medium-term time period. Nonetheless, further assessment of the asset class was merited………………………………………..Full Article: Source

Hedge Funds Keep Betting on Silver Even as Rally Starts to Fade

Posted on 16 May 2016 by VRS  |  Email |Print

Hedge funds expanded their bullish bets on silver to an all-time high even as this year’s hottest metals rally began to fade. Money managers added to their net-long positions in silver for the fourth time in five weeks, chasing the kind of returns that in the first three months of the year sent the precious metal to its best quarterly gain since 2012.
The price surge is showing signs of fatigue, with futures posting two consecutive weekly declines and an almost 4 percent drop for May. Silver leapfrogged gold in mid-April as the best-performing precious metal as data signaled a resilient U.S. expansion and a stabilizing Chinese economy………………………………………..Full Article: Source

Global commodity, energy funds drained

Posted on 16 May 2016 by VRS  |  Email |Print

The commodity rout over the past two years has taken a toll on India-based global commodity and energy funds. The Birla Sun Life Global Commodities Fund is down about 13 per cent over the past year, while the DSP BlackRock World Energy Fund has slipped nearly 17 per cent. The annualised return since inception of these funds in 2008/2009 is less than 2 per cent.
Until recently, there was another fund in the category — Mirae Asset Global Commodity Stock Fund. But this has been merged with the Mirae Asset India-China Consumption Fund with effect from March 2016 — a result, perhaps, of the pain in global commodities………………………………………..Full Article: Source

Hedge-Fund Investors Called Commodities Markets’ Rebound: Chart

Posted on 13 May 2016 by VRS  |  Email |Print

Hedge-fund investors rushed into commodities money pools in the first quarter and the bet’s paying off. They allocated about $4 billion to the strategy in the period, benefiting as the pools returned 6 percent in the first four months.……………………………………….Full Article: Source

Hedge Funds Almost Double Currency Algo Trading, Greenwich Says

Posted on 13 May 2016 by VRS  |  Email |Print

Hedge funds almost doubled their use of algorithmic trading in the foreign-exchange market last year, according to Greenwich Associates. Sophisticated investors executed 61 percent of their currency trades via automated computer programs in 2015, up from 33 percent in 2014, the Stamford, Connecticut-based financial-services consulting firm said in a report.
That compares with buy-side institutions more broadly, including pension funds and other asset managers, which used algos to handle 33 percent of volumes versus 27 percent a year earlier, according to a Greenwich survey of more than 1,600 foreign-exchange market participants in North America, Latin America, Europe, Asia, Australia and Japan………………………………………..Full Article: Source

What Do Hedge Funds Think about Gold?

Posted on 10 May 2016 by VRS  |  Email |Print

Stanley Druckenmiller, chair and CEO of the Duquesne Family Office, spoke to the Sohn Investment Conference attendees on May 4, 2016. Throughout his investment career, his hedge fund track record has seen returns of 30%. According to one of his investors, the Duquesne fund never had a down year.
During the meeting, Druckenmiller was negative on China’s economy going forward. He also expressed his skepticism about the Federal Reserve’s policy. He recommended that investors opt out of the stock markets and also mentioned that his core investment and largest currency allocation is gold. ……………………………………….Full Article: Source

Global hedge funds recover in April on resurging energy commodities

Posted on 05 May 2016 by VRS  |  Email |Print

Global hedge funds recovered in April with the HFRX Global Hedge Fund Index gaining +0.41% last month (-1.47% YTD), while the HFRX Market Directional Index gained +5.31% during the same period (-1.58% YTD) on resurgent energy and commodities.
In its monthly report, Hedge Fund Research said that the global financial markets posted mixed performance in April and added that both the Japanese yen and British pound sterling surged against the US$. Global equities posted mixed results, with gains in Europe offset by weakness in Asia, while gains across large and small cap indices were offset by weakness in technology; reported earnings were also mixed, with weakness in Apple & Twitter offset by strength in Amazon………………………………………..Full Article: Source

Risks rise as hedge funds place record bet on oil: Kemp

Posted on 04 May 2016 by VRS  |  Email |Print

Hedge funds increased their net long positions in Brent and WTI derivatives by 7 million barrels to a record 663 million barrels in the week ending April 26. Even though oil prices have already risen by roughly $20 per barrel (70 percent) from their low in January, hedge funds are more bullish than at any time since oil prices started slumping in the summer of 2014.
Hedge funds and other money managers held futures and options contracts equivalent to 791 million barrels of crude betting on a further rise in prices and just 128 million barrels gambling on a fall……………………………………….Full Article: Source

Oil rally is not just about hedge funds: Kemp

Posted on 03 May 2016 by VRS  |  Email |Print

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts. “Even as oil rallies, analysts have barely nudged up their price forecasts as they worry that crude’s recent gains might not be sustainable,” notes the Wall Street Journal.
Many fear hedge funds are pushing up oil prices prematurely, which will lead to a renewed crash when the bubble bursts, as it did after the last big run-up in prices between January and May 2015………………………………………..Full Article: Source

Gold Keeps Shining as Funds Miss Out on Best Rally in Two Months

Posted on 02 May 2016 by VRS  |  Email |Print

Nothing seems to be slowing down the gold market, even when speculators take a step back. Bullion has been on a tear, with futures last week posting the biggest advance in two months. Hedge funds missed the party, reducing their wagers on a rally by the most since they turned bullish in January.
The money managers were more fortunate when it came to silver, taking their holdings to the highest on record just before the metal had its best monthly advance since 2013. The Bloomberg Precious Metals Subindex jumped 23 percent in 2016 amid renewed demand for stores of value………………………………………..Full Article: Source

Commodity hedge funds outshine other hedge funds

Posted on 29 April 2016 by VRS  |  Email |Print

The commodities market has a very positive sentiment now and the commodity hedge funds are doing better than other hedge funds. Commodities hedge funds have given negative returns for the past three years.
But according to Peter Laurelli, vice-president, research, eVestment, the current year has started on a positve note for commodities as investors start reallocating for better gains. The commodities market has a very positive sentiment now and the commodity hedge funds are doing better than other hedge funds………………………………………..Full Article: Source

Commodity hedge funds are hot again

Posted on 27 April 2016 by VRS  |  Email |Print

Commodity hedge funds netted more investor cash in the first quarter than any other type of hedge fund, and their $4 billion of inflows was their largest for any quarter in more than six years. The group has brought in more money that it has had to redeem for seven straight months, the longest winning streak ever tracked by eVestment.
The quarter has brought a turning point for commodity markets. Oil and gold have had their sharpest rallies in years amid broad gains in the sector. They boosted commodity hedge funds to returns of 1.6% in the quarter, besting all peers except currency and financial derivatives traders, eVestment said………………………………………..Full Article: Source

Commodity Hedge Funds Are Hot Again

Posted on 26 April 2016 by VRS  |  Email |Print

The first quarter was a turning point for commodity markets, and the hedge funds that invest in them. The market investors couldn’t wait to get out of a year ago is the one they’re rushing into in 2016.
Commodity hedge funds netted more investor cash in the first quarter than any other type of hedge fund, and their $4 billion of inflows was their largest for any quarter in more than six years. The group has brought in more money that it has had to redeem for seven straight months, the longest winning streak ever tracked by eVestment, which plans to release the data later Monday morning………………………………………..Full Article: Source

Hedge Funds Losing Investors, Goldman Seeking Customers – Podcast

Posted on 26 April 2016 by VRS  |  Email |Print

Hedge funds are finally putting up some good performance numbers, but that isn’t doing much for their reputation. On Monday’s MoneyBeat podcast, WSJ reporters Timothy Martin and Tim Puko joined us to talk about hedge funds, and the money that is flowing out of them.
The industry has had net outflows in five of the past six months, a rare stretch of investor rejection. There is one exception, however: Commodity hedge-funds, which just had their best quarter for inflows in six years. The irony is that hedge funds just put in their best performance for a quarter in nearly four years………………………………………..Full Article: Source

Hedge funds go long on commodities

Posted on 22 April 2016 by VRS  |  Email |Print

The financial year starting April 1 has been good so far for commodity market players, with hedge funds turning bullish and going long on most base metals, crude oil and bullion.
Easing concerns on China’s growth as reflected in the recent data, weakening of the dollar index and overall positive sentiment have helped bulls get an upper hand. Bloomberg Commodity Index headed for a five-month high, spurred by gains from metals to soy beans, and weighing on government bonds………………………………………..Full Article: Source

Hedge funds bet on tightening oil market despite Doha debacle

Posted on 21 April 2016 by VRS  |  Email |Print

Brent futures prices are signaling the market expects a rapid tightening of the supply-demand balance in the second half of 2016. The spread between futures prices for oil delivered in June and July has moved into a backwardation of 17 cents per barrel from a contango of almost 50 cents at the end of last month.
Contango tends to be associated with an oversupplied market and high and rising stocks, while backwardation is associated with the opposite……………………………………….Full Article: Source

Copper lifts as funds buy base metals

Posted on 19 April 2016 by VRS  |  Email |Print

Copper prices have risen, reversing earlier losses as funds bought base metals on the back of a weaker US dollar and offset the selling triggered by tumbling oil and global equities.
London Metal Exchange benchmark copper ended up 0.4 per cent at $US4,827 a tonne from an earlier session low of $US4,758. “Copper wasn’t hammered like oil and stocks earlier today. That’s a positive sign,” a copper trader said………………………………………..Full Article: Source

Funds Are Betting the Gravity-Defying Gold Rally Isn’t Over Yet

Posted on 18 April 2016 by VRS  |  Email |Print

When it comes to gold, hedge funds are betting that what goes up will continue to go up. Even after bullion’s best start to a year since at least 1975, investors are positioning themselves for more gains.
Money managers increased their wagers on a price rally to the highest since 2012, taking their optimism to a level last seen before a three-year bear market started. The metal has jumped 16 percent this year. Federal Reserve officials are cautious about raising U.S. interest rates amid persistent risks facing the global outlook………………………………………..Full Article: Source

Indian regulator seeks to ramp up hedging in commodities

Posted on 14 April 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) has asked the commodity market advisory committee headed by Ramesh Chand, agriculture expert and full-time member of Niti Aayog, to recommend measures to increase hedgers’ participation in commodity derivatives.
Hedging is the core function of the commodity derivatives market and trading and speculation are permitted with regulations only to provide liquidity. When the Forward Markets Commission was regulating commodity derivatives, it allowed margin relaxations for hedging. Sebi, with more powers and resources at its disposal, has asked the committee to take a holistic view on rules to make hedging easy………………………………………..Full Article: Source

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