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Rated Funds 2015: Commodities

Posted on 06 March 2015 by VRS  |  Email |Print

Commodities have been a disappointing asset class to invest in over the past three years but our four Rated Funds in this group are managed by respected specialists in their field. We have sought to provide “best in class” ideas for investors interested in agricultural commodities, energy, industrial commodities and precious metals.
Like other more specialised asset groups, such funds can provide good diversification and the potential for handsome gains in a portfolio that is already well-represented by traditional asset classes such as equities and bonds………………………………………..Full Article: Source

Specialty funds let you play with the pros in commodities sandbox

Posted on 05 March 2015 by VRS  |  Email |Print

As the Crimean crisis raged last summer, Tyler Mordy and his colleagues at Hahn Investment Stewards made a tactical call in the commodities market. Believing that Russia’s aggression would stoke a major political crisis, they invested in palladium, a silvery-white metal essential in the production of catalytic converters, fuel cells and countless types of electronics.
Russia is the largest source of palladium, and investors speculated about supply disruptions and dwindling stockpiles, sending prices skyward. “Palladium took off like a scalded cat. It worked out incredibly well for us last year,” recalls Mr. Mordy, who is director of research and co-chief investment officer at the Toronto-based firm………………………………………..Full Article: Source

Investing in Alternative Mutual Funds and ETFs

Posted on 03 March 2015 by VRS  |  Email |Print

Alternative investments are gaining popularity, especially those offered in a liquid format by mutual fund and exchange-traded fund (ETF) providers. Mutual fund companies can’t develop new alternative products fast enough to offer to financial advisors or directly to individual investors.
In the past alternatives were offered primarily in investment products like hedge funds with requirements that investors be accredited, meaning they meet minimum income and net worth conditions. In the wake of the turbulence in the financial markets during the 2008-2009 financial crisis they are increasingly being packaged in more liquid and accessible formats………………………………………..Full Article: Source

Hedge funds expect to top $3 trillion in 2015: Deutsche Bank

Posted on 03 March 2015 by VRS  |  Email |Print

Despite producing an average return of 3.3 percent last year, the hedge fund industry is on track to surpass $3 trillion in assets this year, according to a new survey by Deutsche Bank.
“We have seen a doubling in assets under management since 2008,” said Barry Bausano, president of Deutsche Bank Securities and co-head of global prime finance for Deutsche Bank. “That’s despite what’s been pretty pedestrian performance.”……………………………………….Full Article: Source

Hedge funds resume bearish swing in ag bets

Posted on 03 March 2015 by VRS  |  Email |Print

Hedge funds, after a one-week break, resumed their bearish trend of positioning on agricultural commodities, with grains and sugar taking the brunt of the selling. Managed money, a proxy for speculators, cut by more than 30,000 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.
It was the seventh time in eight weeks that hedge funds have cut their net long position – the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when values fall………………………………………..Full Article: Source

Hedge Funds Flee Coffee at Fastest Pace in a Year: Commodities

Posted on 02 March 2015 by VRS  |  Email |Print

It’s raining in Brazil, and the coffee bulls are running for cover. Downpours in the past month mean moisture levels are adequate in most growing areas, replenishing soil left parched by a drought in 2014, according to MDA Weather Services. The rains in the top coffee producer and exporter spurred hedge funds to cut their bullish wagers by the most in a year.
Coffee swung from a bear market to a bull market and back again over the past year, making it the most volatile component of the Bloomberg Commodity Index. After 2014’s dry spell caused prices to double, futures retreated for a sixth consecutive month in February. Global stockpiles at the end of September will be 14 percent higher than previously estimated, the U.S. government said in its most recent outlook………………………………………..Full Article: Source

Hedge Fund Returns Falter, Yet Money Continues to Flow In

Posted on 27 February 2015 by VRS  |  Email |Print

Another year, and another mediocre performance by hedge funds, to put it kindly. The Barclay Hedge Fund Index gained a meager 2.89 percent in 2014, while the Standard & Poor’s 500-stock index gained over 13 percent and the Barclays United States Aggregate Bond Index rose over 5 percent.
Even as their high fees have minted scores of new billionaires, hedge funds have now substantially underperformed a simple blend of index funds — 60 percent stocks and 40 percent bonds — for three-, five- and 10-year periods. And the 10-year numbers cover the period of the financial crisis and the sharp decline in stocks — the very calamity that hedge funds are supposed to protect against………………………………………..Full Article: Source

Hedge funds raise bearish gold price bets by 44%

Posted on 25 February 2015 by VRS  |  Email |Print

Large scale speculators in gold futures added massively to short positions – bets that prices will fall – ahead of Greek bailout deal. On Monday the gold price fell sharply at the open as markets continued to digest the implications of the Greek debt deal reached on Friday, but soon recovered to hover around $1,200 for most of the day.
In thin volumes on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – ended the day at $1,201.30 an ounce, down $3.60 or 0.3% from Friday’s close after earlier slumping to near its lowest for the year at $1,190.85………………………………………..Full Article: Source

Gold Fever Fading as $4 Billion Erased From Funds: Commodities

Posted on 24 February 2015 by VRS  |  Email |Print

Judging by the barometer of hedge-fund interest, there’s less to get excited about in gold these days. Even as Greece battled with its creditors to avoid default and keep the euro zone intact, speculators retreated from the metal used as a haven from economic and political upheaval. Money managers cut their net-long wagers by the most in 15 weeks, U.S. government data show.
The strengthening dollar and record valuations for global equities are diminishing bullion’s appeal as a store of wealth. As the combined market capitalization of stocks thundered through $67 trillion last week and the dollar traded at its highest level in at least a decade, this month’s losses in exchange-traded products backed by gold reached almost $4 billion………………………………………..Full Article: Source

Gold falls back out of favour as hedge funds retreat: Commodities

Posted on 17 February 2015 by VRS  |  Email |Print

Gold is falling back out of favor with investors. Hedge funds cut their net-bullish position in New York futures and options by the most since November, U.S. government data show. A stronger dollar and gains for equities are cutting gold’s appeal as an alternative asset. Prices in New York fell for three straight weeks, snapping a surprise January gain that was the biggest monthly advance since 2012.
The global growth concerns that pushed gold higher last month are starting to subside as tension eases between Greece and its euro-area creditors. Europe’s economy picked up momentum at the end of last year, data showed Friday. The World Gold Council estimates demand for the metal reached a five-year low in 2014 as Chinese purchases slowed………………………………………..Full Article: Source

Gold Falls Back Out of Favor as Hedge Funds Retreat: Commodities

Posted on 16 February 2015 by VRS  |  Email |Print

Gold is falling back out of favor with investors. Hedge funds cut their net-bullish position in New York futures and options by the most since November, U.S. government data show. A stronger dollar and gains for equities are cutting gold’s appeal as an alternative asset. Prices in New York fell for three straight weeks, snapping a surprise January gain that was the biggest monthly advance since 2012.
The global growth concerns that pushed gold higher last month are starting to subside as tension eases between Greece and its euro-area creditors. Europe’s economy picked up momentum at the end of last year, data showed Friday. The World Gold Council estimates demand for the metal reached a five-year low in 2014 as Chinese purchases slowed………………………………………..Full Article: Source

Fund Selector: Consistent outperformance

Posted on 13 February 2015 by VRS  |  Email |Print

The performance of managers in the Investment Association UK All Companies sector relative to the FTSE 100 index since 1996 has borne a close relationship to the performance of the FTSE 250 index versus the FTSE 100.
Indeed, in all but three of the 19 years the sector only outperforms the FTSE 100 when the FTSE 250 does. Last year was one of the three years when this relationship failed – 1996 and 2005 were the others – with the sector returning 0.6 per cent, while the FTSE 100 and the FTSE 250 delivered 0.7 per cent and 3.7 per cent respectively………………………………………..Full Article: Source

Currency hedge funds are making huge comeback

Posted on 13 February 2015 by VRS  |  Email |Print

Hedge funds that bet on currencies are reaping the rewards for the beginning of 2015. According to the Wall Street Journal, currency hedge funds gained 3.4% in January, compared to a 0.5% gain in stock-trading hedge funds and a 0.9% decline in emerging market funds. Their performance this January is the best start to the year since 2008, and for some even longer.
This is a big renewal in currency trading at hedge funds, which diminished greatly after the 2008 financial crisis. But with activity in currencies picking up in the last year, currency trades and profits are finally starting to pick up………………………………………..Full Article: Source

Dallas-based Boardcage Capital launches strategy focused on basic materials, mining and metals, and hires COO

Posted on 12 February 2015 by VRS  |  Email |Print

Boardage Capital Management, LLC, announced the launch of its strategy focused on basic materials, mining and metals. Dallas-based Boardage seeded the investment approach with internal capital in October 2013. As part of the firm’s growth, Boardage also announced the addition of Collin Schuhmacher to the team as Partner. Schuhmacher will be responsible for heading Boardage’s business development, operations and compliance as Chief Operating Officer.
Founder Kevin Nicholson employs a top-down approach to identifying opportunities and investment themes within the basic materials sector. Bottom-up fundamental research subsequently identifies equities most impacted by these themes………………………………………..Full Article: Source

Grain Bulls Exit at Fastest Pace Since 2013 on Glut: Commodities

Posted on 09 February 2015 by VRS  |  Email |Print

Hedge funds cut bullish wagers on agricultural commodities at the fastest pace since August 2013 as expanding grain supplies help keep a lid on global food inflation. Money managers lowered their net-long position on crops from corn to sugar for a fifth straight week, U.S. government data show. Investors got more bearish on wheat and have the smallest wager on a coffee rally in a year.
The U.S. government will probably increase its forecasts for global corn and wheat inventories in a report Tuesday, analysts surveyed by Bloomberg News said. World grain production in the season that began July 1 will rise to the biggest ever, the United Nations’ Food & Agriculture Organization said Feb. 5. The agency’s measure of food prices fell in January to the lowest level since 2010………………………………………..Full Article: Source

Hedge Funds Most Bearish on Crude in 4 Years After Rally: Energy

Posted on 09 February 2015 by VRS  |  Email |Print

Hedge funds raised bearish bets on oil to the highest in more than four years, a sign they’re skeptical that a two-week 14 percent rally will last. Short bets on West Texas Intermediate climbed 1.2 percent in the week ended Feb. 3 to the most since August 2010, U.S. Commodity Futures Trading Commission data show.
Net-long positions slipped for a third week, the longest stretch of declines since August. Prices jumped during the report week as a shrinking number of U.S. rigs drilling for crude raised speculation that output would soon retreat from a three-decade high………………………………………..Full Article: Source

Hedge-fund bulls betting most on gold in 2 years

Posted on 03 February 2015 by VRS  |  Email |Print

Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion. Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Gold prices in January capped the biggest monthly gain in three years. Policy makers in Europe and Asia are adding to stimulus as they battle cooling growth, boosting the appeal of alternatives to currencies that are being revalued. Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates………………………………………..Full Article: Source

Hedge fund selling may be near ending in soy, but not wheat

Posted on 03 February 2015 by VRS  |  Email |Print

Hedge fund selling in agricultural commodities accelerated, to an extent that raised questions over the appetite for more short bets in soybeans – although in wheat, speculators’ liquidation may prove “self-fulfilling”.
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 nearly 90,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Hedge-fund bulls betting most on gold in two years: commodities

Posted on 02 February 2015 by VRS  |  Email |Print

Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion. Speculators increased their net-long position by 80 percent this year, U.S. government data shows. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Gold prices in January capped the biggest monthly gain in three years. Policy makers in Europe and Asia are adding to stimulus as they battle cooling growth, boosting the appeal of alternatives to currencies that are being revalued. Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates………………………………………..Full Article: Source

Hedge funds snap up gold, but where’s it heading?

Posted on 28 January 2015 by VRS  |  Email |Print

Hedge funds are snapping up gold, pushing their net long positions to levels not seen for almost two years. Meanwhile, analysts are split over what 2015 will hold for the precious metal. Speculative investors bought gold for a fourth successive week at a “strong pace” upping long positions. Silver has also been bought for close to 12 weeks, but positioning remains “far from stretched”, according to data from Bank of America Merrill Lynch.
The bank said its indicators suggest investors remain bullish for precious metals, a view which is supported by a number of investment banks and economists, but targets for where the metal will end up by year end differ dramatically………………………………………..Full Article: Source

3 Best Commodities Funds to Buy Now

Posted on 27 January 2015 by VRS  |  Email |Print

Commodities come in several varieties. Therefore choosing the best commodities funds for your portfolio depends upon what you want them to do for you. From a portfolio management perspective, commodities funds are best used as diversification tools because they typically have a low correlation to a broad market index, such as the S&P 500 Index.
From a market timing perspective, commodities funds can be tricky, especially with regard to the biggest commodities story of the moment — the slide in oil prices — that has all the elements of the proverbial peril of “catching a falling knife.”……………………………………….Full Article: Source

Ex-Round Earth’s Whelahan Said to Start Commodities Fund

Posted on 27 January 2015 by VRS  |  Email |Print

Carl Whelahan, a former partner at $200 million commodities hedge fund firm Round Earth Capital, is starting his own fund, according to a person familiar with his plans.
Whelahan expects to raise $100 million to $200 million for his New York-based Seleritas Investment Management, which is scheduled to start in the third quarter, according to the person, who asked not to be identified because the firm is private………………………………………..Full Article: Source

Hedge Funds Bet Oil Has Further to Fall as Glut Grows: Energy

Posted on 26 January 2015 by VRS  |  Email |Print

Hedge funds boosted bearish wagers on oil to a four-year high as U.S. supplies grew the most since 2001. Money managers increased short positions in West Texas Intermediate crude to the highest level since September 2010 in the week ended Jan. 20, U.S. Commodity Futures Trading Commission data show. Net-long positions slipped for the first time in three weeks.
U.S. crude supplies rose by 10.1 million barrels to 397.9 million in the week ended Jan. 16 and the country will pump the most oil since 1972 this year, the Energy Information Administration says………………………………………..Full Article: Source

China funds become new force in global commodity trade

Posted on 21 January 2015 by VRS  |  Email |Print

China’s Shanghai Chaos investment fund is named after the pioneer of chaos theory Edward Norton Lorenz, who coined the term “butterfly effect” to describe seemingly random yet connected events. That may be an apt description for the global metals markets, where moves made by hedge funds in China are increasingly felt across the globe.
“Over 40 years ago US meteorologist Edward Lorenz definitely could not have known that his theories would change a Chinese person’s investment ideas, and allow him to make money,” Shanghai Chaos founder Ge Weidong said in a 2009 interview with Chinese media, explaining why he chose the name of his fund………………………………………..Full Article: Source

After harsh commodity fund shakeout, even the winners see tough times ahead

Posted on 20 January 2015 by VRS  |  Email |Print

After one of the worst years in memory for commodity funds, even the few managers who found a way to make money last year say they expect a difficult start to 2015.
Collapsing oil and grain prices caused havoc for commodity funds in 2014, with the average actively managed fund in the Lipper Global Commodity sector losing 14.35 percent. Big names abandoned the field altogether, and investors redeemed billions………………………………………..Full Article: Source

Long/short funds top 2014 Lipper commodity league table

Posted on 19 January 2015 by VRS  |  Email |Print

Below are tables of the best and worst performers in the fourth quarter of 2014 and for last year as a whole, among the actively managed commodity funds in the Lipper Global database.
The return performance is calculated in the fund’s local currency. The tables use the latest available data provided to Lipper and strip out enhanced index funds that use a very simple rules-based system of rebalancing, as well as funds that are wholly focused on natural resource equities………………………………………..Full Article: Source

Commodity funds see difficult 2015 on falling crude prices

Posted on 19 January 2015 by VRS  |  Email |Print

After one of the worst years in memory for commodity funds, even the few managers who found a way to make money last year say they expect a difficult start to 2015. Collapsing oil and grain prices caused havoc for commodity funds in 2014, with the average actively managed fund in the Lipper Global Commodity sector losing 14.35%. Big names abandoned the field altogether, and investors redeemed billions.
A handful of managers were nevertheless able to exploit the sudden mid-year surge in volatility and the fall in prices. But even they expect a difficult 2015 with pressure on prices to fall further. “It’s the worst place to be, but a long/short fund still has a lot of opportunities,” said Christian Gerlach, portfolio manager at Swiss & Global Asset Management, whose Julius Baer-branded commodity strategy was one of the few to perform well, up 6.09% in 2014………………………………………..Full Article: Source

Chinese funds aggressively shorting commodities linked to copper dive

Posted on 19 January 2015 by VRS  |  Email |Print

Chinese hedge funds, once again linked to a powerful sell-off in copper this week, were probably replaying an aggressive short-selling strategy they have also used to target iron ore and coal, according to industry sources.
This indicates the growing clout of the secretive Chinese funds in global commodity markets as they tap their home-ground advantage in the world’s biggest consumer of copper and other commodities………………………………………..Full Article: Source

Estlander & Partners’ new fund focuses on commodities

Posted on 14 January 2015 by VRS  |  Email |Print

Estlander & Partners has announced the launch of a new systematic fund focused exclusively on the commodities sector. The E&P Commodity fund began trading on 24th November 2014 with assets approaching $30m with backing from a large Nordic institution. The fund vehicle is only available for professional investors in specific jurisdictions within the approved regulatory framework. The strategy will also be made available as managed accounts to institutional and high net-worth investors.
The 100% systematic investment strategy is based on two years’ detailed research by the E&P team based in two of Finland’s leading university cities. The new strategy also benefits from the incorporation of the trend-based systematic approach to trading underlying E&P’s core investment strategies: Alpha Trend and Freedom………………………………………..Full Article: Source

Hedge funds curtail bullish bets on grains, sugar into year-end

Posted on 07 January 2015 by VRS  |  Email |Print

Hedge funds reduced their bullish positions on grains and coffee, and raised bets on sugar price falls to the highest in 17 months - but ended 2014 far more upbeat on agricultural commodities than they began it.
Managed money, a proxy for speculators, reduced its net long in Chicago-traded soft red winter wheat futures and options in the week to last Tuesday for the first time in five weeks, data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Hedge Funds Resume Bullish Gold Bets as Greece Vote Looms

Posted on 06 January 2015 by VRS  |  Email |Print

Hedge funds are stepping back onto the gold bandwagon as political turmoil in Greece and government actions in Asia helped send prices to their biggest monthly advance since June.
Bullish wagers on the metal increased for the first time in three weeks and have more than doubled since mid-November, U.S. government data show. Short holdings dropped for the sixth week in seven. Bullion rose for a second straight month in December………………………………………..Full Article: Source

Investors eye 2015 with big appetite for hedge funds

Posted on 02 January 2015 by VRS  |  Email |Print

Wealthy investors are poised to put at least $90 billion into hedge funds next year, even after returns have largely been lackluster this year, research firm eVestment said on Tuesday. Fresh demand from pension funds, endowments, and insurers looking for alternatives to traditional stock and bond holdings will fuel next year’s flows, the researchers wrote in a report.
“Will institutional investors maintain their investments and continue to allocate more to hedge funds in 2015 … The short answer is yes,” they wrote, adding “We expect asset flows into hedge funds of at least between $90 billion and $110 billion in 2015.” Hedge funds manage roughly $3 trillion in assets………………………………………..Full Article: Source

Funds unconvinced by gold rebound

Posted on 02 January 2015 by VRS  |  Email |Print

Gold’s year-end rebound is taking investors by surprise. With Greece facing another political crisis and equities giving up some gains, bullion is headed for the biggest monthly advance since June. Hedge funds lowered their wagers on a rally for a second straight week, and holdings in exchange-traded products backed by the metal are near the lowest since 2009.
The money managers aren’t the only ones being caught off guard, with the rebound undercutting bearish forecasts from Goldman Sachs Group Inc. and Societe Generale SA. The metal has climbed 5.9 percent since reaching a four-year low in November. Slowing economies are prompting central banks in Europe and Asia to add to monetary stimulus, while gold’s volatility is picking up after spending most of 2014 in the doldrums………………………………………..Full Article: Source

In charts: the funds wiped out by the falling oil price

Posted on 23 December 2014 by VRS  |  Email |Print

Specialist funds that invest in oil and gas companies have posted huge losses over the past six months. Investors who have money tied up in specialist energy - usually falling into the categories of either “energy” or “natural resources” - are nursing heavy losses.
These funds invest in oil and gas companies across the globe so their performance is closely tied to the price of oil. Since the middle of June the “black gold” commodity has fallen nearly 50pc in price, with Brent crude dropping from $116 to nearer $60 a barrel………………………………………..Full Article: Source

Hedge funds hike bullish bets on ags - even as oil retreats

Posted on 16 December 2014 by VRS  |  Email |Print

Hedge funds returned to a net long position in Chicago wheat for the first time in six months as they made a sharp rise in bullish positioning on ags – an increase potentially spurred by the weakness in other commodities.
Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to sugar, by more than 55,000 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………Full Article: Source

Hedge Funds’ Bullish Gold Bets Defy Goldman Outlook: Commodities

Posted on 15 December 2014 by VRS  |  Email |Print

Hedge funds are the most bullish on gold since August, defying Goldman Sachs Group Inc.’s prediction that the rally in prices will fade. The net-long position in New York futures and options climbed for a fourth week, the longest stretch of increases since July, government data show.
Futures jumped 2.7 percent last week, the most since June, as a plunge in global equities erased about $2 trillion from the value of stocks. Holdings in exchange-traded funds backed by gold rose for the first time since October as investors sought protection from the rout………………………………………..Full Article: Source

Risk Is Back for Hedge Funds Chasing Glut of Mergers: Real M&A

Posted on 15 December 2014 by VRS  |  Email |Print

Merger-arbitrage traders didn’t have enough risk last year. This year, they got more than their share — and it’s not going away. Companies announced $2.8 trillion of acquisitions, making 2014 the busiest year since before the financial crisis. Unprecedented amounts of money were spent in some industries, such as pharmaceuticals, and the transactions skewed larger than at any other time this century, according to data compiled by Bloomberg.
The slew of deals gave merger-arbitrage traders plenty to wager on, after last year’s scarcity of profit opportunities………………………………………..Full Article: Source

3 Commodity Funds for Wise Men

Posted on 11 December 2014 by VRS  |  Email |Print

Being a commodities investor is a volatile game; in recent years the ride has been as bumpy as those three magi’s camelback trek doubtless was. In the decade to 2007 commodities benefitted from a fantastic bull run, fuelled by emerging market demand. Private investors clambered to get a piece of the action, buying up commodity ETFs and natural resources funds from the likes of JP Morgan and BlackRock.
But the tables turned when the global recession forced construction to halt across the emerging world. The S&P Goldman Sachs Commodities Index fell 70% in 2008, bottoming out in February 2009 and moving sideways until June this year, when significant falls in the oil price sent the entire index plummeting………………………………………..Full Article: Source

CTA funds profitable but Gas industry dips, says Lyxor

Posted on 10 December 2014 by VRS  |  Email |Print

Despite the effects of falling oil prices, commodity trading advisor (CTA) funds are still profitable, according to Lyxor Asset Management. Oil process have fallen almost 40 percent since mid-June this year, however this led to gains on the commodity complex and CTAs saw a 1.5 percent rise due to short commodities.
Lyxor says this proves CTAs to be a diversified source of gains, with most funds posting profit on equities, rates and FX. It also suggests that strategy could remain resilient if oil prices pick up. Global macro strategies were up 0.3 percent, with equities as the main driver and European markets contributing the most. Commodities posted mixed returns, with specialist generating alpha due to short positioning on all clusters, particularly energies………………………………………..Full Article: Source

Hedge funds ‘pantsed’ in bearish shift on ag bets

Posted on 09 December 2014 by VRS  |  Email |Print

Hedge funds made the most bearish shift on their bets on agricultural commodities in four months, including a large negative shift in soybean positioning which left speculators “pantsed” by the price recovery late last week.
Managed money, a proxy for speculators, slashed by more than 58,000 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 Betting That OPEC-Led Oil Rout Is Near End

Posted on 08 December 2014 by VRS  |  Email |Print

Hedge funds are betting that the oil-price crash is close to ending. Speculators boosted their net-long position in West Texas Intermediate crude by 14 percent in the week ended Dec. 2, the most in 20 months, U.S. Commodity Futures Trading Commission data show. Short bets contracted by 15 percent as long wagers expanded 4 percent.
Oil’s collapse accelerated after the 12-nation Organization of Petroleum Exporting Countries decided Nov. 27 to maintain output levels, underscoring the price war in crude. Oil tumbled into a bear market in October and reached a five-year low last week as the U.S. shale boom added to a global glut at a time of weakening demand growth………………………………………..Full Article: Source

Managed futures funds ride high on back of tumbling oil price

Posted on 05 December 2014 by VRS  |  Email |Print

The tumbling price of oil may have hurt investors who owned commodities, roubles or oil companies, but has been a boon for hedge funds that use computer programs to follow market trends.
These funds, known as managed futures funds or commodity trading advisers, had their best month in more than 12 years in November, with several famous names recording double-digit percentage returns. The outperformance comes as some relief for the sector after several years of weak returns that had left some funds battling customer redemptions………………………………………..Full Article: Source

While Commodity Hedge Funds Falter, Algo Funds Trading Commodities Outperform

Posted on 05 December 2014 by VRS  |  Email |Print

Fundamental commodity player Armajaro Commodities has been hard hit by oil and trades in less liquid markets, including Cocoa and Coffee, are interesting and appear to be contributing to negative performance. The positions that Armajaro has taken appear to be, in some cases, a mirror opposite of the algorithmic hedge funds trading commodities.
Armajaro’s oil loss come at a time when those trading a momentum strategy in the commodity markets have been feasting on the oil trade. Covenant Capital Management, for instance, will be releasing its November numbers in days and based on a preview of the results given to ValueWalk, Oil was a major factor in the fund’s success………………………………………..Full Article: Source

Commodity Hedge Funds Struggling To Survive Amid Oil Volatility

Posted on 04 December 2014 by VRS  |  Email |Print

Commodity hedge funds have had a tough time throughout the year and it seems like things are just going to get worse. Several hedge funds have announced that they are closing after consistent underperformance. The most recent casualty is the Brevan Howard Commodities Fund.
BH announced that it will be shutting down the $630 million fund after it lost 4.2% through the end of October. BH Commodities was run by Stephane Nicolas, and joins Brevan Howard’s growing list of funds which have gone under in the last few years. The most recently closed funds include Brevan Howard Emerging Markets Fund and Brevan Howard Investment Fund II Macro FX fund………………………………………..Full Article: Source

Oil’s swoon on OPEC is rare boon for a few hedge funds

Posted on 04 December 2014 by VRS  |  Email |Print

OPEC’s decision not to cut oil output despite a market glut gave a late-month boost to several energy hedge funds in November, pushing them toward double-digit gains in a year marked by commodity fund closures.
Greenwich, Connecticut-based Taylor Woods Capital Management, one of the larger U.S. energy hedge funds with nearly $1 billion under management, gained more than 5 percent last month and is up over 10 percent on the year, according to sources familiar with the firm’s returns………………………………………..Full Article: Source

3 Precious Metals Funds To Consider

Posted on 02 December 2014 by VRS  |  Email |Print

Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past.
Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments in this sector………………………………………..Full Article: Source

Shuttered Brevan Commodities Fund Caught Out on Derivatives

Posted on 02 December 2014 by VRS  |  Email |Print

Brevan Howard Asset Management LLP’s commodities hedge fund, which is being shut, suffered heavy losses on derivatives contracts despite correctly betting that the oil price would fall. The $630 million Commodities Strategies fund, which was launched in 2010 and managed by Stephane Nicolas, suffered its worst-ever hit in September when it slumped 11.2%.
Even before September the fund had suffered, but it was closed after a particularly difficult period for commodities investors. Oil prices slumped to a five-year low on the back of geopolitical concerns, including Western sanctions against Russia and slowing growth in China………………………………………..Full Article: Source

Huaneng sets up China’s first carbon fund

Posted on 27 November 2014 by VRS  |  Email |Print

State-owned power generator Huaneng on Wednesday set up China’s first carbon fund, which will focus on trading carbon permits in the emissions trading scheme in Hubei province.
The establishment of the 30 million yuan ($4.9 million) fund marks another step towards maturity for China’s fledgling pilot carbon markets, which will convert to a national scheme in 2016…………………………………..Full Article: Source

Hedge funds catching up to gold, silver price rally

Posted on 25 November 2014 by VRS  |  Email |Print

On Monday gold futures again flirted with the psychologically important $1,200 an ounce level, consolidating at three-week highs. In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery – the most active contract – was changing hands for $1,198.80 an ounce after bouncing off resistance at $1,208.
March 2015 silver contracts gained slightly to trade at $16.50 an ounce on Monday, up just over a dollar since hitting 55-month lows November 6. Gold is now up 6% since touching a four-year low little over two weeks ago and it appears large investors are now beginning to catch up to the rally………………………………….Full Article: Source

The Fund that Reshaped the Gold Market

Posted on 19 November 2014 by VRS  |  Email |Print

The first U.S. exchange-traded fund to give investors a stake in gold was the fastest-growing financial product of its kind when it launched 10 years ago. Today, SPDR Gold Trust , better known by its ticker symbol GLD, is the fastest-shrinking.
The fund’s trajectory mirrors the metal’s appeal as an investment. GLD’s holdings swelled in the wake of the financial crisis, reflecting the wave of investors seeking a haven who drove gold prices to record highs in 2011……………………………………Full Article: Source

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