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State Street Starts Global Macro Hedge Fund in Alternatives Push

Posted on 31 July 2015 by VRS  |  Email |Print

State Street Corp. is starting a hedge fund that will bet on macroeconomic events, part of an effort to expand its $2.37 trillion money-management arm beyond lower-paying passive strategies.
The strategy, which will be run by Michael Ho and Lisa O’Connor, will mostly make directional bets on and against stocks, bonds, currencies and commodities globally, confirmed Anne McNally, a spokeswoman for State Street. The bank seeded the fund with $50 million, and Hartford HealthCare’s pension and endowment added $33 million………………………………………..Full Article: Source

Wells Fargo Starts Commodities Hedge Fund Amid Slump in Prices

Posted on 29 July 2015 by VRS  |  Email |Print

Wells Fargo & Co.’s wealth management division is soliciting investor money for a new commodities hedge fund just as oil hovers near a six-year low and other commodities prices slide to their worst levels since 2002.
The Apollo Natural Resources II ASP Fund has already raised about $7 million and is looking for wealthy individuals who can afford the minimum $100,000 entry investment, according to a July 16 securities filing………………………………………..Full Article: Source

Funds flow into agriculture as El Nino threatens crops

Posted on 28 July 2015 by VRS  |  Email |Print

Funds are flowing back into agricultural commodities for the first time since 2012 as investors look to capitalize on cheap prices, bullish demand and the threat of crop damage from an El Nino weather pattern. Figures from ETF Securities, one of the largest issuers of exchange traded products, show a small net inflow so far this year after an outflow of nearly 20 percent in 2014.
Across the sector, indices and ETFs saw a net inflow of $400 million in April and a further $400 million in May, according to data from Barclays. This compares to a net outflow of $2.4 billion in the last quarter of 2014………………………………………..Full Article: Source

Hedge funds are most bearish on U.S. oil since 2010: Kemp

Posted on 28 July 2015 by VRS  |  Email |Print

Hedge funds are more bearish about the outlook for U.S. oil prices than at any time for almost five years, according to data from the U.S. Commodity Futures Trading Commission. Hedge funds and other money managers had a net long position in WTI-linked futures and options equivalent to just 118 million barrels of oil on July 21, down from a recent high of 294 million barrels 11 weeks earlier.
The net position was the smallest since September 2010. Money managers interested in oil have a long bias (there has been no net short since the current time series began in 2006). So the small net long indicates an unusually high level of bearishness among hedge funds………………………………………..Full Article: Source

ETFs get the edge on hedge funds

Posted on 27 July 2015 by VRS  |  Email |Print

They’re touted as the best instruments to diversify your portfolio by those who market them, including BlackRock, the world’s largest asset manager. The marketing plan appears to be working, as investors have ploughed more funds into exchange-traded funds (ETFs) than hedge funds, according to research firm ETFGI.
There was $2.97 trillion invested in the 5,823 exchange-traded products at the end of the second quarter, an ETFGI report said. Meanwhile, the global hedge-fund industry had $2.96 trillion in assets under management………………………………………..Full Article: Source

Hedge Funds Dump Crude Oil as Iran Deal Threatens Prolonged Glut

Posted on 20 July 2015 by VRS  |  Email |Print

Speculators cut bullish bets on oil to the lowest level since March because an agreement over Iran’s nuclear program threatens to prolong a global supply glut. Money managers reduced their net-long position in West Texas Intermediate crude by 15 percent in the week ended July 14, U.S. Commodity Futures Trading Commission data show. Longs dropped 7.9 percent and short wagers rose 4.2 percent.
Iran, holder of the fourth-biggest crude reserves, may be able to increase exports as soon as December if it complies with the terms of its nuclear accord with world powers. That would add to record output from Saudi Arabia and Iraq and come at a time when the Organization of Petroleum Exporting Countries is pumping the most in almost three years………………………………………..Full Article: Source

Hedge funds post best returns in years

Posted on 17 July 2015 by VRS  |  Email |Print

Global hedge funds reached the halfway mark in 2015 with some of their best returns in years, but performance cooled off in June from growing losses in Asia Pacific and Europe, according to the latest statistics from Preqin, a research firm focused on the alternative assets industry.
“The industry has had a run of five months of positive returns from the start of 2015, and surpassed full-year 2014 performance in May,” said Amy Bensted, Preqin’s head of hedge fund products.”However, various macroeconomic events, notably the Greece/Eurozone crisis and the turbulence experienced in the China stock market, has led to hedge funds failing to generate positive returns in June and has dented the year-to-date return of the sector.”……………………………………….Full Article: Source

Reversal of Fortune for Gold & Silver Funds?

Posted on 16 July 2015 by VRS  |  Email |Print

Gold started off 2015 with a bang as it became even more of a safe haven as a result of an increase in currency volatility, uncertainly over Greece’s future in the euro zone and expected quantitative easing in Europe. However, the gains fizzled out as gold prices again dropped on strong U.S jobs.
Following which, gold prices fell to new six-week lows as equities recovered on hopes that Greece would work out a deal with its creditors. The demand for yellow metal returned at the start of the second quarter on disappointing economic data and a firming dollar. A weaker dollar and geopolitical tensions emanating from the Saudi Arabia-led coalition’s attack on Houthi rebels helped gold move up………………………………………..Full Article: Source

Hedge Funds Target Australian Dollar for Bet Against China

Posted on 14 July 2015 by VRS  |  Email |Print

Hedge funds wary of a slowdown in China are betting against the Australian dollar. The Aussie has long been viewed as the currency of choice to bet against for funds worried about China’s economy. But having traded above parity with the U.S. dollar as recently as May 2013, it has fallen sharply in recent years and has continued its decline over the past month as China’s stock market has tumbled.
That looks likely to have benefited funds who piled into bets against the currency in recent months. According to data from the U.S. Commodity Futures Trading Commission, bets taken by leveraged funds on the Australian dollar falling leaped by almost 60% between May 19 and July 7. Positioning data from the Commodity Futures Trading Commission covers a small slice of an enormous market, but they’re a reasonable proxy for speculative flows as a whole………………………………………..Full Article: Source

Warning: Hedge Funds See Gold Price Collapse in 2015

Posted on 10 July 2015 by VRS  |  Email |Print

Despite an underwhelming U.S. jobs report and turmoil in Greece, institutional investors are more bearish on gold prices now than at any point in history. With China’s stock market in freefall and Europe on the brink of chaos, many analysts predicted that investors would seek the relative safety of precious metals. Those predictions have been wrong so far.
A recent report from the Commodity Futures Trading Commission (CFTC) shows that some of the world’s largest hedge funds are unloading their bullish positions on gold futures. The value of futures contracts fluctuate based on where investors think the asset’s price is headed. If they are optimistic, investors amass “long” positions; if they are pessimistic, they take “short” positions………………………………………..Full Article: Source

China funds target commodities after slump in equities

Posted on 09 July 2015 by VRS  |  Email |Print

Chinese hedge funds have been big short sellers of locally traded commodities, including iron ore, steel and rubber, after redeploying cash from tumbling equity markets where authorities have slapped curbs on trading, fund managers and traders said.
The Chinese equity market rout, which has persisted despite a raft of unprecedented policy measures, appears to be the chief factor driving the sell-off in commodities. There had been forced liquidation on China’s commodities markets due to margin calls tied to stock market exposure, as well as some short sellers taking advantage a flight of international investors from local markets, they said………………………………………..Full Article: Source

Gold market returns to net dehedging in Q1

Posted on 09 July 2015 by VRS  |  Email |Print

Following a year of net hedging in 2014, when hedging contributed 3.33-million ounces to gold supply, the first quarter of 2015 saw the market return to net dehedging, with the global producer gold hedge book contracting by 80 000 oz. This return of activity to the demand side of the market came after 1.45-million ounces of net hedging in the last quarter of 2014, Société Générale and Thomson Reuters GFMS revealed in the Global Gold Hedge Book Analysis for the first quarter on Wednesday.
The report further noted that the volume of the global producer hedgebook ended the quarter at 6.21-million ounces, with 29 companies becoming net dehedgers, and 16 companies adding to their delta-adjusted hedge positions over the three months………………………………………..Full Article: Source

Look out: Currency hedging is on the loose in ETF world

Posted on 09 July 2015 by VRS  |  Email |Print

That stampeding sound you hear is coming from fund managers scurrying to get into the currency-hedging trade. In recent weeks firms have brought more than a dozen new offerings in that category to the exchange-traded fund universe. ETFs looking to hedge exposure to currency issues across Europe, South America and Asia have blossomed as investor money pours into the strategy.
As is often the case on Wall Street, the natural worry is whether the rush might come too late. Foreign exchange dynamics present earlier this year have abated somewhat, making the need to protect against currency movements less urgent for the moment………………………………………..Full Article: Source

Funds’ swing bullish on ags raises fears of price ‘headwinds’

Posted on 08 July 2015 by VRS  |  Email |Print

US regulators confirmed that hedge funds indeed swung bullish in agricultural commodities by the most on record – but the extent of the shift provoked concerns over the ammunition left for spurring further price rises.
The Commodity Futures Trading Commission confirmed data which showed that managed money in the week to last Tuesday turned from a net short of 27,560 short-sold contracts in futures and options in the top 13 US-traded ags to a net-long of 342,857 held contracts………………………………………..Full Article: Source

Gold price: Hedge funds have NEVER been this bearish

Posted on 07 July 2015 by VRS  |  Email |Print

Gold is down nearly 10% from its 2015 highs and the pervading negative sentiment – despite all the factors working in the precious metal’s favour – is nowhere more evident than in the positioning of speculators on the futures market. Last week large gold futures investors such as hedge funds, referred to as “managed money”, slashed overall bullish positions by a whopping 55%.
Bets that prices will rise only amounted to 21,480 lots or 2.15 million ounces in the week to June 30 according to the Commodity Futures Trading Commission’s weekly Commitment of Traders data. That’s more than 14 million ounces below levels hit in January this year when gold reached its 2015 peak. The net long positioning is also the lowest since October 2006 when gold was worth less than $600 an ounce………………………………………..Full Article: Source

Officials spike data showing huge turn bullish by funds on ags

Posted on 07 July 2015 by VRS  |  Email |Print

Regulators cautioned investors over data which showed hedge funds making, by far, their biggest swing positive in positioning in agricultural commodities on record, saying the statistics were based on “incomplete” information. Sources including Rabobank said that the Commodity Futures Trading Commission, the US regulator, had revealed that managed money, a proxy for speculators, slashed its negative positioning in futures and options in the top 13 US-traded agricultural commodities in the week to June 30 at the fastest on record.
The data would show hedge funds turning net long - meaning that long positions, which profit when values rise, exceed short holdings, which benefit when values fall - for the first time in nearly three months………………………………………..Full Article: Source

Hedge funds wrong-footed by wheat price surge

Posted on 30 June 2015 by VRS  |  Email |Print

Hedge funds look to have been wrong-footed by the surge in wheat futures late last week, and saw profits dry up in soybeans as a rising market encouraged them to cover short positions at the fastest rate on record.
Managed money, a proxy for speculators, cut by more than 58,000 contracts its net short 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

Increasing investor concentration in hedge funds?

Posted on 25 June 2015 by VRS  |  Email |Print

According to the latest survey from data provider Preqin, some 51 investors have increased their allocation to the hedge funds to over the $1bn benchmark, while 27 investors have seen their allocation fall below that level.
There are now a total of 227 investors around the globe that have $1bn or more in assets invested in hedge funds, and collectively these investors have $735bn invested in the asset class, representing almost a quarter of the total capital invested in the industry (up 13%) on a year ago. Most of these were in America. What’s going on?……………………………………….Full Article: Source

Hedge funds return to extending bearish ag bets

Posted on 23 June 2015 by VRS  |  Email |Print

Hedge funds returned to extending their bearish bets on agricultural commodities, led by corn, in which wet Midwest weather is supporting US yield prospects, and sugar, helping drive prices to a six-year low.
Managed money, a proxy for speculators, raised by more than 81,000 contracts its net short 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

Funds pinch their nose and buy euros

Posted on 23 June 2015 by VRS  |  Email |Print

The notion that funds have been buying euros every time the Greek crisis deteriorates sounds daft. But the latest run of data covering funds’ activity does seem to bear it out. This will make any reaction to a Greek deal if (big if) we get one tough to call. As we’ve noted recently, the euro has held remarkably firm even while the Greek crisis has run right to the wire with few signs of progress or even good will, writes Katie Martin.
Bets against the euro have clearly been shrinking. Take a look at the dollar positioning chart below from ANZ. It covers positioning data from the Commodity Futures Trading Commission. This represents a tiny slice of the currencies market as a whole, but it’s a pretty good proxy for funds’ activity………………………………………..Full Article: Source

Gold price: Hedge funds scramble to cover 233 tonnes

Posted on 19 June 2015 by VRS  |  Email |Print

Gold on Thursday was clawing its way back to the $1,200 an ounce level, buoyed by dovish comments from the US Federal Reserve about the pacing of interest rate cuts which took some shine of the strong dollar. In brisk afternoon trade in New York, gold for delivery in August, the most active contract, added $25.50 an ounce or 2.2% from Wednesday’s close to exchange hands for $1,202.40 an ounce, the best level since May 22.
Lower-for-longer interest rates add to the allure of gold which produces no income and relies on price appreciation to attract investors. Worries about the economic impact of the Greek debt crisis and a weaker dollar also boosted the yellow metal which usually moves in the opposite direction to the greenback………………………………………..Full Article: Source

Hedge funds slash bearish ag bets at quickest rate in 15 months

Posted on 16 June 2015 by VRS  |  Email |Print

Hedge funds cut their bearish bets on ag commodities at the fastest rate in 15 months as mounting weather fears prompted a revival in prices – although there are doubts of the more positive positioning holding.
Managed money, a proxy for speculators, slashed by nearly 130,000 contracts its net short 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 cut bearish ag bets at fastest pace in 3 months

Posted on 09 June 2015 by VRS  |  Email |Print

Hedge funds turned less bearish on ags at the fastest pace in three months, although it was driven by short-covering in just one commodity, soyoil, and left the net short at a historically high level.
Managed money, a proxy for speculators, cut by more than 60,000 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

Fund Managers Cut Oil Bets Ahead of OPEC Meeting

Posted on 05 June 2015 by VRS  |  Email |Print

Money managers have been cutting back their bets on oil in the run up to the crucial meeting of the Organization of the Petroleum Exporting Countries in Vienna this week. The number of bets taken by hedge funds and other big investors on the global oil benchmark Brent—comprising bets on both rising and falling prices—has fallen to just over 320,000, the equivalent of 320 million barrels of oil, its lowest level in nine months.
The number of bets on West Texas Intermediate, the U.S. gauge, is at its lowest since the beginning of January. The $2.5 billion United States Oil Fund USO -2.53 % LP, the largest U.S. exchange-traded fund investing in U.S. oil futures, has also drawn back, registering outflows of close to $1 billion in the past two months, according to investment research company Morningstar. In April, the fund lost $550 million, the biggest withdrawal since 2011. It lost another $390 million in May, the data shows………………………………………..Full Article: Source

The currency hedging trade is starting to fade

Posted on 05 June 2015 by VRS  |  Email |Print

The trendiest trade of 2015 has lost some of its mojo lately. With global central banks in overdrive to devalue and the U.S. heading in the opposite direction, investors had been piling into exchange-traded funds that hedged against big currency moves.
Four of the top 10 ETFs this year in terms of fund inflows are related to currency hedging. That includes the most popular one, the WisdomTree Europe Hedged Equity, which has taken in $13.6 billion, according to ETF.com. The fund is up a gaudy 16.8 percent year to date but is down 2.5 percent over the past week and off 0.4 percent for the month. The funds often use a balance of dividend-paying and export-based companies to hedge currency exposure………………………………………..Full Article: Source

Investors Cut Gold-Fund Holdings to Four-Month Low on Fed Bets

Posted on 03 June 2015 by VRS  |  Email |Print

Investors sold gold through bullion-backed funds, cutting holdings to a four-month low, on speculation that the Federal Reserve is getting closer to raising interest rates. Futures advanced in New York.
Assets in exchange-traded products backed by the metal dropped 2.4 metric tons to 1,599.5 tons as of Monday, according to data compiled by Bloomberg. Holdings slipped 4.8 percent since late February and are at the lowest since Jan. 14………………………………………..Full Article: Source

Metal Funds Rule Commodities in May as Traders Bet on Gains

Posted on 01 June 2015 by VRS  |  Email |Print

Investors are buying into industrial-metal funds at a faster pace than any other commodity, underscoring optimism about the health of the global economy. U.S. exchange-traded products backed by the metals attracted $71.1 million in May, putting flows on track for the biggest monthly increase since 2012, according to data compiled by Bloomberg as of Wednesday.
The extra funds represent a 22 percent increase in market value, more than other commodity groups such as agriculture and energy. Money managers are betting that China’s efforts to kickstart its slowing economy, including three interest-rate cuts in six months, will succeed in increasing demand for raw materials………………………………….Full Article: Source

India: RBI asks banks to create awareness on hedging agri-commodities

Posted on 29 May 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) on Thursday advised banks to create awareness among their borrowers for hedging agricultural commodity price risk. “Banks should encourage hedging by the agri-borrowers by creating awareness amongst them regarding the utility and benefits of hedging through agri-commodity derivatives,” RBI said in a notification to all banks. “This would help to develop strong risk management capabilities to manage agri-commodity price risk,” it added.
At the same time, said RBI, “banks must keep the sophistication, understanding, scale of operation and requirements of their agri-borrowers in mind while advising on the availability and use of these instruments.” To begin with, banks were asked to encourage large agricultural borrowers such as agricultural commodity processors, traders, millers and aggregators to hedge their commodity price risk…………………………………Full Article: Source

Hedge Funds Have Taken a Shine to Silver

Posted on 29 May 2015 by VRS  |  Email |Print

Silver prices have remained stuck at historical lows for the past three years, but hedge funds have decided now is the time to pile in. Last week, hedge funds snapped up silver at the fastest pace since 1997, increasing their net long position to a three-month high according to data from Bank of America Merrill Lynch.
Large speculators increased their net long position to $4.4 billion as of May 19, up from $2.4 billion in the previous week, according to the bank’s research. The data, gathered from the U.S. Commodity Futures Trading Commission, is released every Friday, but reflects positions as of Tuesday’s close. The regulator requires traders to hand over data on their significant positions in major markets. Bank of America Merrill Lynch looks at a section of this data, which includes trading by speculative investors………………………………..Full Article: Source

Chinese Hedge Funds Turn Bearish on Copper

Posted on 28 May 2015 by VRS  |  Email |Print

Gains of as much as 20 percent since January haven’t convinced Chinese hedge funds that demand for copper is improving in the world’s biggest-consuming country. “The outlook for China’s demand will be worse, not better,” said Shen Haihua, a senior portfolio manager at Hong Kong-based HFZ Capital Management, a joint venture of U.K. hedge fund Red Kite Management Ltd. and Maike Metals International, a Chinese metals trader. HFZ Capital says demand will weaken in the second half of the year.
Because China uses half of the world’s copper to build new power lines, cars and appliances, investors piled into the metal this year as the government took steps to revive the economy. Some of that cash is flowing into Chinese hedge funds that have expanded after regulatory changes in 2013, helping to fuel domestic trading of commodity derivatives that now outpaces the growth of legacy markets like the London Metal Exchange…………………………………….Full Article: Source

Currency hedging: Does it still work?

Posted on 28 May 2015 by VRS  |  Email |Print

Hedging the euro and the yen has amplified returns for Japan and Europe investors in recent years, but will the trend continue? Over most timeframes, UK investors in Japan and Europe who have hedged the yen and euro have reaped stronger returns.
In the last year, three years and five years, the picture has been the same: of the pound strengthening against those currencies, and chipping away at the returns of those with unhedged exposure. With central banks in both Japan and Europe printing more money to buy bonds to boost their economies - known as ‘quantitative easing’ - many investors are betting that trend will continue…………………………………….Full Article: Source

China’s new $16bn gold fund at centre of new ‘Silk Road’

Posted on 27 May 2015 by VRS  |  Email |Print

Gold prices could be boosted by China’s plan to establish a $16bn (£10bn) fund to stockpile the precious metal as part of a scheme known as the ‘Silk Road’ initiative aimed at boosting trade. State endorsed media in China has reported that the new fund Shandong Gold Group and Shaanxi Gold Group will each take stakes of 35pc and 25pc respectively in the new fund alongside other investors.
The new entity, which may include an exchange traded fund for gold and investments in miners of the precious metal, aims to raise the $16bn in three tranches, according to the report. News of the fund could restore some impetus to the gold market, which has been struggling to offset the growing strength of the US dollar, which usually weighs on prices…………………………………..Full Article: Source

Chinese Hedge Funds Bearish on Copper Ring Alarm Bells for Bulls

Posted on 26 May 2015 by VRS  |  Email |Print

Nobody may be more bearish on China copper than Chinese hedge funds. That should be a warning to investors who’ve ridden the metal’s rebound from a five-year low into a bull market. Gains of as much as 20 percent since late January haven’t convinced the money managers that demand is improving in the world’s biggest copper-consuming country, where the economy is growing at the slowest pace in a generation.
“The outlook for China’s demand will be worse, not better,” said Shen Haihua, a senior portfolio manager at Hong Kong-based HFZ Capital Management, a joint venture of U.K. hedge fund Red Kite Management Ltd. and Maike Metals International, a Chinese metals trader. HFZ Capital says demand will weaken in the second half of the year………………………………………..Full Article: Source

Hedge funds still gloomy on ags, despite deep cut to wheat shorts

Posted on 26 May 2015 by VRS  |  Email |Print

Hedge funds’ dramatic turn less gloomy view on wheat price prospects has not been reflected in their thinking on ags overall, with corn and soybeans bearing the brunt of fresh bearish positioning. Managed money, a proxy for speculators, lifted its net short position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by 32,354 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.
The increase took the net short – the extent to which short holdings, which profit when values fall, exceed long bets, which benefit when prices gain – to 98,548 lots, below the record 142,612 contracts hit last month but a historically large figure nonetheless………………………………………..Full Article: Source

China sets up “largest” gold fund for nations along Silk Road

Posted on 25 May 2015 by VRS  |  Email |Print

China, the world’s biggest gold producer, has set up a gold sector fund involving countries along the ancient Silk Road which is expected to raise USD 16.1 billion. The fund, led by Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan (USD 16.1 billion) in three phases, state-run Xinhua news agency reported. It is said to be the “largest fund” set up by China.
The fund has been set up in northwest Xi’an city during an ongoing forum on investment and trade. China is the world’s largest gold producer, and also a major importer and consumer of gold………………………………………..Full Article: Source

AfDB invests N14 billion in African agriculture

Posted on 25 May 2015 by VRS  |  Email |Print

The African Development Bank, AfDB, said it has invested N14.78 billion (N2.91 trillion) in the agriculture sector of its Regional Member Countries (RMC) in 46 years to grow their economy. Chiji Ojukwu, the Director of Agriculture and Agro-Industry Department of the bank, stated this in a statement published on the bank’s official website.
In the statement, retrieved by the News Agency of Nigeria on Sunday in Lagos, the director said that between 1968 and 2014, the bank group approved 876 operations. These operations had commitments valued at approximately $14.78 billion that provide support to agriculture and rural development………………………………………..Full Article: Source

Commodities, precious metals funds outflows biggest since 2013 -Lipper

Posted on 22 May 2015 by VRS  |  Email |Print

Investors in U.S.-based funds pulled $597 million out of funds that specialize in commodities and precious metals in the week ended May 20, data from Thomson Reuters’ Lipper service showed on Thursday. The outflows were the biggest since December 2013. Stock funds posted $1.7 billion in outflows over the latest week after attracting $3.7 billion in inflows the prior week.
U.S.-based non-domestic-focused stock funds attracted $3.3 billion of inflows, their 15th straight week of net new cash. “I’m speculating here but possibly stronger economic news caused investors to pull money out of commodities and into stocks,” said Patrick Keon, research analyst at Lipper………………………………………..Full Article: Source

Chinese commodity hedge funds cultivate ties with Western investors

Posted on 21 May 2015 by VRS  |  Email |Print

Chinese hedge funds, blamed for several routs in the metal markets in the past 18 months, are developing relations with Western investors as they stretch out beyond their home turf, an executive at London Metal Exchange broker Sucden said.
Chinese metals funds, including Shanghai Chaos Investment Co, were believed to be behind an 8 per cent plunge in the copper price over three days in March 2014 and were active as the metal crashed to a six-year low this year. They have become a dominant force in metals, especially during the Asian day, as Western hedge funds, asset managers and banks have scaled back or quit………………………………………..Full Article: Source

Chinese metals hedge funds aim to lure Western investors

Posted on 20 May 2015 by VRS  |  Email |Print

Chinese hedge funds, blamed for several routs in the metal markets in the past 18 months, are developing relations with Western investors as they stretch out beyond their home turf, an executive at London Metal Exchange broker Sucden said.
Chinese metals funds, including Shanghai Chaos Investment Co, were believed to be behind an 8 percent plunge in the copper price over three days in March 2014 and were active as the metal crashed to a six-year low this year………………………………………..Full Article: Source

Hedge funds dumping oil position as OPEC may raise supply level

Posted on 19 May 2015 by VRS  |  Email |Print

Hedge funds and oil speculators are losing faith in the oil rally on concerns the Organization of Petroleum Exporting Countries (OPEC) will increase supply to its highest level since 2012, according to Bloomberg. Data from the U.S. Commodity Futures Trading Commission (CFTC) shows that hedge funds’ net-long position in West Texas Intermediate (WTI) crude fell 2.1%.
Futures advanced 35 cents to $60.75 a barrel on the New York Mercantile Exchange in the period covered by the CFTC report, before retreating to close at $59.69 on May 15. The net-long position in WTI slipped from a nine-month high to 262,575 futures and options. Shorts dropped 17% to 52,973 and longs fell to 315,548………………………………………..Full Article: Source

Hedge funds ‘may cover more shorts in wheat, but not sugar’

Posted on 19 May 2015 by VRS  |  Email |Print

Investors noted scope for further short-covering in wheat derivatives, after hedge funds eased back from a record bearish position, but raised doubts over the appetite for extending a large positive shift in raw sugar.
Managed money, a proxy for speculators, cut by more than 37,000 contracts its net short 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 Lose Faith in Oil Rally as OPEC Seen Boosting Supply

Posted on 18 May 2015 by VRS  |  Email |Print

Speculators are losing faith in the oil rally, judging that OPEC will keep increasing supply from the highest level since 2012. Their net-long position in West Texas Intermediate crude dropped 2.1 percent, as long wagers fell the most in two months and short bets declined to the lowest since August, U.S. Commodity Futures Trading Commission data show.
OPEC’s push to defend its share of the global oil market has just begun and its members may further increase production, the International Energy Agency said May 13. Saudi Arabia said it boosted output to the highest level in at least three decades………………………………………..Full Article: Source

ETFs poised to outstrip hedge funds

Posted on 08 May 2015 by VRS  |  Email |Print

The high-profile hedge fund world is about to be surpassed in terms of total assets by the unstoppable juggernaut that is the exchange-traded fund (ETF) industry, new research shows. Assets held globally in ETFs reached $2.93trn (£1.9trn) at the end of the first quarter of this year, according to research and consultancy firm ETFGI.
Meanwhile, a report from Hedge Fund Research has revealed there was $2.94trn in hedge funds at the same time. The difference in assets is the closest it has ever been (see top chart) and ETFGI predicts that given the much faster rate of inflows into ETFs seen in recent years, the tracker funds should overtake hedge funds within the second quarter of this year………………………………………..Full Article: Source

Hedge funds are in love with crude oil

Posted on 07 May 2015 by VRS  |  Email |Print

Hedge funds love crude oil. Oil prices are recovering from the crash, and hedge funds have made big bets that oil prices will keep rallying.
According to a report from Societe Generale, hedge funds are most bullish on crude oil among major commodities, or betting that the price of oil will rise. Overall, hedge funds are still negative on commodity prices………………………………………..Full Article: Source

Market U-Turn Rams Hedge Funds

Posted on 06 May 2015 by VRS  |  Email |Print

A broad market reversal is battering hedge funds, spoiling the industry’s strongest annual start since the financial crisis. Many funds that bet on global financial and economic trends run by firms such as Fortress Investment Group LLC and Discovery Capital Management LLC suffered losses in April as they tried to benefit from a constellation of market moves that gained momentum in mid-2014 and were widely expected to continue throughout 2015.
They included rising European bond prices, spurred by the European Central Bank’s bond-buying program, and falling commodity prices as global growth stalled. But several factors upended those bets, beginning in late March and intensifying recently. Several rounds of unexpectedly weak U.S. economic data forced many investors to push back their forecast for when the Federal Reserve may raise interest rates………………………………………..Full Article: Source

Global equity mutual funds, ETFs post $31.8 billion April inflows

Posted on 29 April 2015 by VRS  |  Email |Print

Global equity mutual funds and exchange-traded funds showed $31.8 billion of net inflows in April through Friday, TrimTabs Investment Research said on Tuesday, putting them on track to surpass the record inflow of $34.8 billion in March.
U.S. equity mutual funds and exchange-traded funds have posted net withdrawals of $15.4 billion this month through April 24. “Equity flows shifted into emerging markets recently as investors chased the monster rally in China,” said Winston Chua, analyst at TrimTabs. “Interest in Europe cooled off in recent days, and investors still want nothing to do with the U.S.”……………………………………….Full Article: Source

Can hedge funds turn the tide in 2015?

Posted on 29 April 2015 by VRS  |  Email |Print

According to Preqin, hedge funds have started this year with a bullet. The Preqin All-Strategies Hedge Fund benchmark posted a 2.49% return in February, the highest monthly return since January 2013. The performance is timely given that hedge fund performance was a concern in 2014. The challenge, and opportunity, still remains for hedge funds to continue the uptick in Q1 as equity markets look to be buoyant and commodity markets remain turbulent.
According to the latest HFR Market Microstructure Industry Report, new hedge fund launches were down last year (in numerical terms, down 20 on the 1,060 funds launched in 2013). While launches have trended in a narrow range in recent years, they remain well below the peak of 2,073 funds launched in 2005, though nearly double the local trough of 659 launches in 2008. This is now the third consecutive year of decline, while fund liquidations saw their first drop since 2010………………………………………..Full Article: Source

Hedge Funds Lead Shift In Dollar Sentiment

Posted on 29 April 2015 by VRS  |  Email |Print

Betting that the dollar will keep pushing higher against major currencies has lost its allure. Up until a few weeks ago positioning for a further climb of the dollar against the euro and the yen was the only game in town, but investors and traders’ are scaling back on the trade, according to the latest positioning data from the Commodities Futures Trading Commission, which measures a portion of the market that serves as a good proxy for the whole.
In fact, being long the dollar has been named as the most crowded trade for months in surveys of fund managers by Bank of America Merrill Lynch. But now the trade is losing steam………………………………………..Full Article: Source

Hedge funds betting on more losses for crops as supplies swell

Posted on 28 April 2015 by VRS  |  Email |Print

With planting conditions improving across the U.S. Midwest, hedge funds are betting that harvests this year will compound a global crop surplus and worsen losses for corn, soybean and wheat prices.
Corn seeding is already ahead of last year’s pace, and recent rains that hampered sowing in some areas will give way to drier conditions this week, according to MDA Weather Services. In the Great Plains, winter-wheat conditions are better than they were in 2014. Record crops in Argentina and Brazil are adding to soybean supplies as U.S. farmers are forecast to plant the most acres ever next month………………………………………..Full Article: Source

Hedge funds bet big on oil price rally

Posted on 24 April 2015 by VRS  |  Email |Print

Hedge funds have placed one of their largest ever bets on a rally in oil prices, just as evidence mounts that energy companies are hunkering down for a delayed recovery.
Exchange data show hedge funds and other large speculators have accumulated a record-breaking number of North Sea Brent futures and options contracts equal to almost 265m barrels of oil — the equivalent of almost three days of global oil demand…………………………………..Full Article: Source

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