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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

Hedge Funds cut gold bets in fastest exit this year

Posted on 19 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 percent, U.S. government data show. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009, as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 percent from this year’s peak in March. Investors’ appetite for bullion has diminished as the dollar strengthened to a five-year high, the Federal Reserve moved closer to raising borrowing costs, U.S. equities reached records and inflation failed to accelerate……………………………………Full Article: Source

Index Funds And ETFs: 5 Ways To Shop Smart

Posted on 18 November 2014 by VRS  |  Email |Print

From 2007 through 2013, domestic equity index mutual funds and ETFs received $795 billion in cumulative net new cash and reinvested dividends, as many investors were drawn to passive investment strategies.
A big part of the allure of passive investments is their relatively low cost. Rather than attempting to beat the market through active stock picking, these passive strategies try to match the performance of the market or a part of it, based on an index, for instance the S&P. These investments may not offer the potential of outperformance, but they typically offer lower costs…………………………………Full Article: Source

Hedge funds cut gold bets as demand eases

Posted on 18 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 per cent, US government data showed. Holdings tumbled 49 per cent over three weeks, the most since December last year. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009 as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 per cent from this year’s peak in March. Investor appetite for bullion has diminished as the US dollar strengthened to a four-year high, the Federal Reserve moved closer to raising borrowing costs, US equities reached records and inflation failed to accelerate…………………………………Full Article: Source

Hedge Funds Cut Gold Bets in Fastest Exit This Year: Commodities

Posted on 17 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 percent, U.S. government data show. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009, as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 percent from this year’s peak in March. Investors’ appetite for bullion has diminished as the dollar strengthened to a four-year high, the Federal Reserve moved closer to raising borrowing costs, U.S. equities reached records and inflation failed to accelerate……………………………………Full Article: Source

Hedge funds extend positive ag bets. But has sentiment on wheat turned?

Posted on 11 November 2014 by VRS  |  Email |Print

Have hedge funds begun laying bets on falling wheat prices again, after six weeks of taking a less negative stance? Managed money, a proxy for speculators, raised its net long position in futures and options in the top 13 US-traded agricultural commodities by more than 50,000 contracts in the week to last Tuesday, data from the Commodity Futures Trading Commission showed.
The increase took the overall net long above 440,000 lots, the highest since July, and up nearly 200,000 lots in four weeks. The more bullish sentiment has been spurred by a slow US harvest, and slightly less upbeat harvest reports as combines have spread from southern areas to the western Corn Belt, besides by some weather concerns too………………………………………..Full Article: Source

Global Commodity Funds - SELL

Posted on 10 November 2014 by VRS  |  Email |Print

Funds that invest in Indian energy and commodity stocks have been on a roll for the last one year, thanks to pricing reforms and expectations of an economic pick-up benefiting cyclical companies. In sharp contrast, India-based global industrial commodity and energy funds have been underperforming.
Birla Sun Life Global Commodities Fund and DSP BR World Energy Fund fell 7-8 per cent last year, while Mirae Asset Global Commodity Stock Fund slipped about 2 per cent. The annualised returns of these funds since inception in 2008 and 2009 are just 3 to 6 per cent………………………………………..Full Article: Source

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Gold funds down by 80pc: should you invest?

Posted on 06 November 2014 by VRS  |  Email |Print

The price of gold bullion has fallen by 35pc in three years but every gold fund has more than halved, with some losing even more. Funds that give private investors exposure to gold have hugely magnified recent falls in the price of the precious metal itself.
While gold bullion has lost 35pc of its value over the past three years, one gold fund, MFM Junior Gold, has fallen by 83pc over the same period. Others have performed almost as poorly, with the popular BlackRock Gold & General fund down by 61pc over the same period and Ruffer Baker Steel Gold 73pc lower………………………………………..Full Article: Source

Some Hedge Funds Profit From Steep Decline in Oil Prices

Posted on 05 November 2014 by VRS  |  Email |Print

Some nimble energy investors are making money off the steep slide in oil prices, dodging the hit that financial markets and oil producers have suffered.
Hedge-fund managers including the team of George “Beau” Taylor and Trevor Woods, and Pierre Andurand are among those who have reaped profits during the selloff by correctly predicting that rising global crude-oil output would overwhelm the market and send prices lower. ……………………………………….Full Article: Source

Hedge Fund, Investor Groups Hammer Swaps ‘Stays’

Posted on 05 November 2014 by VRS  |  Email |Print

Hedge funds, insurers and other companies said global regulators shouldn’t implement new rules aimed at protecting the financial system against the failure of big banks. At issue are changes endorsed by global banking regulators that would require banks and investors to give up their contractual rights to terminate swaps contracts with a troubled financial institution.
Instead, the firms would have to wait up to 48 hours before seeking to terminate derivatives contracts and collect associated payments from a troubled financial institution. Eighteen of the largest lenders in the U.S., Europe and Asia agreed to the changes in principle last month and global regulators plan to enshrine the changes in new regulation by the end of 2015………………………………………..Full Article: Source

Hedge funds extend short-covering in ags, led by soy

Posted on 04 November 2014 by VRS  |  Email |Print

Hedge funds extended their wave of short-covering in agricultural commodities as sharply improved sentiment towards the soy complex trumped a heap of negative bets on sugar following Brazil’s election result.
But the extent of the short-covering in soy derivatives raised concerns that the trend may struggle to continue. Managed money, a proxy for speculators, raised by more than 40,000 contracts its net long in futures and options in the top 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission………………………………………..Full Article: Source

Hedge Funds Cut Bullish Oil Bets on Rising Global Output

Posted on 03 November 2014 by VRS  |  Email |Print

Hedge funds cut bullish holdings in crude as record U.S. output added to a global supply glut, spurring the longest losing streak in prices in six years. Money managers reduced net-long positions in West Texas Intermediate by 2.3 percent in the week ended Oct. 28, U.S. Commodity Futures Trading Commission data show. Long positions retreated to the lowest level in 17 months.
WTI fell 12 percent in October for a fourth consecutive drop, echoing the collapse in prices during the global financial crisis. Production by OPEC rose to the highest in more than a year last month, a Bloomberg survey showed, and U.S. output is running at the fastest pace since at least 1983. The gains came as the International Energy Agency reduced its estimate for demand growth this year and in 2015………………………………………..Full Article: Source

Hedge funds pick wrong in oil bet

Posted on 28 October 2014 by VRS  |  Email |Print

Hedge funds rushed back into oil too quickly, boosting bullish bets amid a rebound last week, only to then watch surging US crude supplies push prices back to a two-year low. The net-long positions in West Texas Intermediate futures rose 5.7 per cent in the seven days to October 21, US Commodity Futures Trading Commission data showed. Short bets shrank 20 per cent, the most in three months, while longs dropped 2.8 per cent.
After rising as analysts speculated prices had reached a floor, WTI sank again after stockpiles climbed. It fell to US$80.52 on October 22, the lowest settlement since June 2012, and ended the week down 24 per cent from the year’s high. The US benchmark might dip to US$75 by the end of the year, Bank of America Corp said………………………………………..Full Article: Source

Hedge Funds Cut Coffee Bull Bets aas Brazil Drought Eases

Posted on 27 October 2014 by VRS  |  Email |Print

Hedge funds pared back their biggest bullish coffee bet since 2008 as rains brought relief to drought-stricken growing areas in Brazil, the world’s biggest producer and exporter.
Money managers cut their net-long position in arabica coffee for the first time in four weeks. Futures in New York tumbled 9.1 percent last week, the most since May. More regular and widespread showers will trigger new flowering for coffee plants after some blooms were lost amid dry conditions last month, Sao Paulo-based Somar Meteorologia said Oct. 21………………………………………..Full Article: Source

Investors Pile Into Oil Funds at Fastest Pace in 2 Years

Posted on 22 October 2014 by VRS  |  Email |Print

Investors are putting money into funds that track oil prices at the fastest rate in two years, betting that crude will rebound from a bear market. The four biggest oil exchange-traded products listed in the U.S. have received a combined $334 million so far this month, the most since October 2012, according to data compiled by Bloomberg.
Shares outstanding of the funds, including the United States Oil Fund (DBO) and ProShares Ultra Bloomberg Crude Oil, rose to 55 million yesterday, a nine-month high………………………………………..Full Article: Source

Hedge Funds Cut Bullish Bets on Crude as Prices Tumble

Posted on 20 October 2014 by VRS  |  Email |Print

Plunging oil prices spurred hedge funds to cut bullish wagers by the most in six weeks, losing confidence in the willingness of producers to constrict supply. Money managers cut net-long positions in West Texas Intermediate by 8.1 percent in the week ended Oct. 14. Short positions jumped to the highest level in 22 months, U.S. Commodity Futures Trading Commission data show.
WTI tumbled 9.2 percent this month as U.S. production expanded to a 29-year high. That added to signs of a global supply glut just as the International Energy Agency cut its forecast for demand growth. Crude is now trading in a bear market, underpinned by speculation that OPEC members are favoring market share over prices………………………………………..Full Article: Source

Hall Commodities Hedge Fund Shutting After Poor Performance

Posted on 16 October 2014 by VRS  |  Email |Print

Hall Commodities LLP, a London-based $100 million hedge-fund firm run by Tony Hall and Arno Pilz, told clients it’s shutting down after less than two years in business, citing poor performance.
The firm will return money to investors at the end of the month after its main fund lost 1.6 percent in September and 11 percent this year, Hall said in an Oct. 9 client letter, a copy of which was obtained by Bloomberg News. The firm, which was incorporated in December 2012, lost 10.1 percent since inception………………………………………..Full Article: Source

Have hedge funds ended wave of selling in ags?

Posted on 14 October 2014 by VRS  |  Email |Print

Hedge funds showed further signs of unwillingness to extend their negative take on agricultural commodities, with increased bearishness in corn and soybeans matched by more positive takes in cotton and sugar.
Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by 1,960 contracts to 251,765 lots in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Hedge Funds Miss Out on Gold Gains as Bull Holdings Drop

Posted on 13 October 2014 by VRS  |  Email |Print

Hedge funds reduced bullish gold wagers just before prices rallied the most since June on concern that global economic growth is weakening.The net-long position in New York futures and options contracted for an eighth week, U.S. government data show. The International Monetary Fund cut its 2015 world growth forecast on Oct. 7.
Minutes of the Federal Reserve’s last meeting showed policy makers saw slowing foreign expansion as a risk to the U.S., fueling bets that record-low borrowing costs will persist………………………………………..Full Article: Source

Return of volatility brings currency funds a welcome windfall

Posted on 10 October 2014 by VRS  |  Email |Print

Big price swings in the foreign exchange market are back and currency funds are reaping the benefit after years of poor returns as central bank cash suppressed the volatility on which they depend. Laith Khalaf, a strategist at investment group Hargreaves Lansdown, said he could not recall a month since the 2008 financial crisis when a currency fund was in the top 10 of the more than 2,000 funds the firm tracks. In September, there were two in the top five.
And an index of global currency managers’ performance, the Parker Global Strategies CMI-C Index, posted a 2.63 percent rise in September, its biggest monthly gain in 10 years. The index has lost money in four out of the last five years. ……………………………………….Full Article: Source

Commodities Funds Soar As Retirement Asset Niche

Posted on 24 September 2014 by VRS  |  Email |Print

The value of commodities funds soared by 45 percent from 2010 to 2012 in 401(k) and defined contribution plans, asset research firm BrightScope disclosed Tuesday using the latest Labor Department data. Despite the surge, these funds continue to be a niche holding for retirement savings, accounting for just over 1 percent ($3.8 billion) of retirement assets.
Pimco was the most popular sponsor of the funds, taking three of the top five places. The company’s Commodity Real Return Strategy Fund retained the No. 1 ranking for the second year in a row with a gain of more than $100 million in retirement accounts, rising to a total of $587 million………………………………………..Full Article: Source

Funds Turn Bearish Silver, CFTC Data Shows

Posted on 23 September 2014 by VRS  |  Email |Print

Large speculators turned bearish in their Comex silver futures and options net holdings, according to data in one of the reports compiled by the Commodity Futures Trading Commission.
The disaggregated commitments of traders report from the CFTC showed large speculators now hold a net-short silver positioning, the first time since June 10. In the legacy report these traders are still net-long, but this is the ninth straight week they cut their bullish holdings. The most recent CFTC data is for the week ended Sept. 16………………………………………..Full Article: Source

Hedge Funds Make Record Bet on Lower U.S. Diesel Prices

Posted on 22 September 2014 by VRS  |  Email |Print

Speculators are making their biggest-ever bet on lower U.S. diesel costs after expanding stockpiles drove prices to a two-year low.
Hedge funds increased net-short wagers on ultra-low sulfur diesel for a fourth week, to the most in U.S. Commodity Futures Trading Commission data that begins in 2006. Prices retreated 17 percent since reaching this year’s high on Jan. 31………………………………………..Full Article: Source

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