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Hedge funds wrong-footed by sugar price rebound

Posted on 09 February 2016 by VRS  |  Email |Print

Hedge funds returned to a net short position in the main US-traded agricultural commodities, driven by a record swing bearish on sugar – which has begun to appear misjudged, given a revival in prices.
Managed money, a proxy for speculators, returned to a net short holding, of 11,654 lots, in the week to last Tuesday in futures and options in the top 13 US-traded agricultural commodities, according to data from the Commodity Futures Trading Commission………………………………………..Full Article: Source

Investment funds hit all time high in 2015

Posted on 27 January 2016 by VRS  |  Email |Print

Investment funds under management hit a record high of £871 billion in 2015, up from £835 billion in 2014. The figures, published by The Investment Association – a body that represents UK investment managers – come despite the turmoil in markets in the latter half of the year as a Chinese slowdown and commodity rout dented investor sentiment.
UK Equity Income was once again the best-selling fund sector of the year. Meanwhile tracker funds, which aim to replicate performance of a particular stock market index such as the FTSE, had their best year ever………………………………………..Full Article: Source

Hedge Funds Had Worst Year Since 2008 Betting on Commodities

Posted on 26 January 2016 by VRS  |  Email |Print

Hedge funds betting on raw materials had the worst performance since the global financial crisis of 2008 as everything went wrong for commodities. The funds lost 5.2 percent in 2015 and recorded losses in 10 out of 12 months, based on an index compiled by Societe Generale SA that tracks the performance of commodity trading strategies including equities and physical products.
Managers lost money and commodity funds from Trafigura Pte Ltd. to Cargill Inc. closed last year as China’s slowing economy added to the global glut in most raw materials. Losses from poor performance and investor withdrawals left assets at the top 10 commodities hedge funds at less than $10 billion, compared with more than $50 billion in 2008, Trafigura said last month………………………………………..Full Article: Source

Hedge funds cut bearish ag bets for first time in 2016

Posted on 26 January 2016 by VRS  |  Email |Print

Hedge funds turned less downbeat in bets on agricultural commodities for the first time since before Christmas – but wheat largely missed out on the move, raising ideas of the potential for some price support.
Managed money, a proxy for speculators, cut its net short position in futures and options in the top 13 US-traded agricultural commodities, from soybeans to cocoa, by 87,632 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Investors Aren’t Fleeing Global Funds, ETFs

Posted on 22 January 2016 by VRS  |  Email |Print

Conventional wisdom has held that investors are bailing out of stocks in the wake of this month’s global slump. Yet TrimTabs Investment Research finds scant evidence that globally focused equities investors have been running for the hills.
While net outflows have exceeded inflows by some $30 billion for U.S. equity mutual funds and exchange-traded funds, TrimTabs estimates that there were net inflows of $1.2 billion for global equity mutual funds and net outflows of $3.3 billion for global equity ETFs. That combined $2.1 billion net outflow is “modest” and “sends a very-bearish contrary signal for international equities,” the firm contends, as those funds and ETFs are down 9% to 10% this month………………………………………..Full Article: Source

More pain ahead for commodities, hedge funds bet

Posted on 19 January 2016 by VRS  |  Email |Print

The commodity meltdown that pushed oil to a 12-year low and copper to the cheapest since 2009 isn’t over yet. At least, that’s how hedge funds see it. Money managers increased their combined net-bearish position across 18 raw materials to the biggest ever, doubling the negative bets in just two weeks.
A measure of returns on commodities last week slid to the lowest in at least 25 years. Metals, crops and energy futures all slumped amid supply gluts and an anemic outlook for the global economy………………………………………..Full Article: Source

Funds betting commodity collapse has more to go

Posted on 18 January 2016 by VRS  |  Email |Print

The commodity meltdown that pushed oil to a 12-year low and copper to the cheapest since 2009 isn’t over yet. At least, that’s how hedge funds see it. Money managers increased their combined net-bearish position across 18 raw materials to the biggest ever, doubling the negative bets in just two weeks.
A measure of returns on commodities last week slid to the lowest in at least 25 years. Metals, crops and energy futures all slumped amid supply gluts and an anemic outlook for the global economy………………………………………..Full Article: Source

Hedge funds post worst annual return since 2011

Posted on 13 January 2016 by VRS  |  Email |Print

Hedge funds in 2015 posted their lowest annual return for four years amid heightened volatility and a weak market, industry data tracker Eurekahedge said on Tuesday. The Eurekahedge Hedge Fund Index fell 0.58 percent in December while the MSCI World Index declined 2.23 percent, Eurekahedge said, giving hedge funds an average annual performance of 1.56 percent.
“Returns across hedge fund strategic mandates were disappointing during December with most finishing the month in negative territory,” Eurekahedge said. “In particular, long positions into European equities suffered losses as ECB’s early December meeting proved to be a disappointment for investors leading to a slump in European equities,” it said………………………………………..Full Article: Source

Commodity Funds Fall Short, Study Says

Posted on 12 January 2016 by VRS  |  Email |Print

Sobering news for investors in specialty-commodity mutual funds: On average, they fall short on key measures, new research has found. “These categories of funds have not been able to consistently create positive net alphas for their investors over longer time periods,” the report states. Alpha is a measure of the value fund managers add to the investment process when adjusted for risk factors such as volatility.
The funds’ high expenses are often to blame, according to the report by Srinidhi Kanuri at the University of Southern Mississippi, Robert McLeod at the University of Alabama and Davinder Malhotra at Philadelphia University………………………………………..Full Article: Source

Hedge funds have never been this bearish on commodities

Posted on 12 January 2016 by VRS  |  Email |Print

Gold is the big exception with managed money futures investors slashing bearish bets on the gold price by 44% After a nice run at the beginning of the new trading year, on Monday on the Comex market in New York, gold futures with February delivery retreated as worries about the global economy and geopolitics overwhelmed financial and commodity markets.
In afternoon trade gold was exchanging hands for $1,095.50 an ounce, down $2.30 compared to Friday’s close. Last week the metal reached a two-month high on the back of safe-haven buying, but with a fresh plunge in oil and copper prices and continuing weakness on global stock markets, bulls were in retreat everywhere………………………………………..Full Article: Source

Investors in the mood to cut hedge fund exposure

Posted on 11 January 2016 by VRS  |  Email |Print

Global investors are planning to cut their exposure to hedge funds in 2016 following a disappointing performance in the past year, according to a survey. The poll data, from research group Preqin, will be met with dismay by the hedge fund industry, which had hoped volatile stock markets would encourage investors to seek alternative sources of return. It is also likely to add extra pressure on hedge fund fees.
Preqin’s survey of institutional investors showed that more are planning to cut their hedge fund holdings this year than are planning to increase them, by 32 per cent to 25 per cent……………………………………….Full Article: Source

Hedge funds bet on further ag price falls - after ‘destructive’ 2015

Posted on 06 January 2016 by VRS  |  Email |Print

Hedge funds bet on further declines in ags in 2016, even after a year termed by the Bcom as the “most destructive crash in a generation” for commodities as a whole, helped by 19% losses for grain and livestock bulls.
Managed money, a proxy for speculators, undertook a hefty selldown in the top 13 US-traded agricultural commodities in the week to December 29, to return to a net short position which has been unusual by historical standards, analysis of regulatory data overnight reveals………………………………………..Full Article: Source

Commodity funds hemorrhage cash as investors bail at record pace

Posted on 29 December 2015 by VRS  |  Email |Print

Investors can’t seem to get away from non-energy commodities fast enough. A record US$857 million was pulled this year from U.S. exchange-traded funds backed by broad baskets of everything from grains to metals, according to data compiled by Bloomberg through Dec. 23.
The value of the funds plunged 26 per cent as raw materials tumbled to a 16-year low. Hedge funds are expecting more losses, betting on price declines for gold, copper, corn and natural gas. While energy-linked funds were the only commodity group to see net inflows this year, oil and gas didn’t escape an almost across-the-board decline in prices………………………………………..Full Article: Source

Chinese funds take cautious bets on short-term metals price rise

Posted on 28 December 2015 by VRS  |  Email |Print

Some big Chinese commodity funds are positioning for a short-term uptick in metals prices despite a poor longer-term outlook, expecting supplies to tighten over the next three to six months as Beijing acts to strengthen its economy.
Chinese commodity funds have been blamed for pulling down copper prices in particular the last two years, but at least two large funds have started backing away from bearish bets on metals………………………………………..Full Article: Source

Gold’s Wild Ride Leaves Best Forecasters Siding With Fund Bears

Posted on 21 December 2015 by VRS  |  Email |Print

Janet Yellen sent gold prices on a roller-coaster ride. Now, hedge funds and the metal’s best forecasters are predicting there’s only one way prices are heading next: down. The Federal Reserve Chair on Wednesday raised U.S. interest rates for the first time in almost a decade, sending bullion prices swinging and driving the metal’s 30-day volatility to a six-week high.
While traders couldn’t decide on a direction for gold, Robin Bhar and Barnabas Gan, the most accurate forecasters, are convinced futures will keep falling in 2016. Money managers agree, raising their net-short position to the highest ever………………………………………..Full Article: Source

Hedge Funds Burned by Commodities Lose $40 Billion Since ‘08

Posted on 15 December 2015 by VRS  |  Email |Print

The biggest commodities meltdown in a generation has cost hedge funds more than $40 billion in seven years. Losses due to poor performance and investor withdrawals have left assets at the top 10 commodities hedge funds at less than $10 billion, compared with more than $50 billion in 2008, according to estimates from Trafigura Pte Ltd.’s annual report.
The trader and asset manager said the perception of commodities as an investable asset has been replaced by a “generalized aversion.” “Commodities as an asset class are not as attractive as before and we are seeing the consequences on our asset management division,” ……………………………………….Full Article: Source

Private equity, pension funds eye more metal streaming deals

Posted on 15 December 2015 by VRS  |  Email |Print

Private equity and pension funds may provide the next wave of funding to the slumping mining sector through metal streaming deals as dedicated funding sources struggle to raise their own cash, industry sources said. With many miners unwilling to issue equity given their weakened shares amid falling commodity prices, streaming may help them avoid credit downgrades and fund new mines.
About $4.5 billion worth of these deals, an alternative form of financing where miners are paid cash upfront for future output, have been inked this year, making 2015 a record year for metals streaming as miners slash debt five years into a commodities downturn………………………………………..Full Article: Source

Here’s a hedge fund getting in commodities, rather than out

Posted on 08 December 2015 by VRS  |  Email |Print

Orion Mine Finance Group is starting a hedge fund at a time when most investors are fleeing commodities. The $2 billion(Dh7.34 billion) investment firm is opening a fund in January to trade industrial and precious metals, and may eventually add equities, according to Oskar Lewnowski, the founder and chief investment officer.
The business, headed by John Fallon, is called Orion Commodities Fund LP and may buy and sell derivatives, as well as physical raw materials. Orion’s expansion is unusual because this year has seen some of the biggest, most well-known traders shut down their flagship commodity funds during the worst year for raw material prices since the global financial crisis of 2008………………………………………..Full Article: Source

Hedge Funds Turning Record Bearish on Gold Miss Metal’s Rebound

Posted on 07 December 2015 by VRS  |  Email |Print

Record hedge-fund pessimism about gold prices came at exactly the wrong time, just prior to the precious metal’s biggest rally since September. Money managers boosted their gold net-short position to the highest ever three days before Friday’s U.S. jobs report, which showed growth for payrolls, but also a rising underemployment rate.
The data, coupled with Federal Reserve Chair Janet Yellen’s signals that interest rate increases will be slow as the economy grows, sent gold prices higher. It’s been a tough year for gold bulls, with prices already set for a third annual loss, the longest slump since 1998………………………………………..Full Article: Source

Schroders commodity fund fights for survival

Posted on 07 December 2015 by VRS  |  Email |Print

A Schroders commodity fund that was once the largest of its kind in Europe has suffered substantial outflows from US investors on the back of the poor performance, raising questions about the fund’s survival.
Large investors, including Ocers, the Californian pension scheme, have pulled money from the UK asset manager’s Schroder Alternative Solutions Commodity fund, which has suffered from the recent commodity market rout. The outflows have caused its assets to fall from $4.6bn at its peak in 2010, to $803m. The expectation is that further outflows are likely………………………………………..Full Article: Source

Hedge funds have never bet this much on a falling gold price

Posted on 02 December 2015 by VRS  |  Email |Print

On Tuesday on the Comex market in New York, gold futures with February delivery dates eked out a small gain in brisk post-holiday trade, but remains not far off near five-and-half year lows hit last week. Exchanging hands for $1,067.40 gold is down more than $100 an ounce or just under 10% from where it was trading just before the Federal Reserve’s interest rate announcement in October which opened the door for a rate rise – which would be the first in nine years – when the bank next meets in two weeks time.
Last week gold touched $1,053 an ounce, the lowest since February 2010 and November has been the worst month for gold since mid-2013, a year during which the metal fell 28% in value………………………………………..Full Article: Source

Metals fund Orion Resources sees more pain for copper, gold

Posted on 02 December 2015 by VRS  |  Email |Print

Copper and gold are set for more price weakness as bear markets across the commodities sector are likely to last three more years, metals and mining fund Orion Resources said. “We are going to see a pretty broad cross-commodity leg down, where $900 an ounce gold is more than just a possibility,” Orion’s CIO Oskar Lewnowski said.
“$1.80 a pound ($3,968 a tonne) for copper is likely … I don’t think we are going to see much relief until 2018,” said the mining financier, who co-founded metals merchant and hedge fund Red Kite more than a decade ago before starting Orion………………………………………..Full Article: Source

Sovereign Funds and New Trends in Commodities Markets

Posted on 01 December 2015 by VRS  |  Email |Print

Sovereign wealth funds have expanded dramatically in recent years. High commodity prices and large foreign exchange reserves have contributed to their significant growth in global markets. Yet, recent trends in equity and commodities markets could seriously impact this growth story.
Sovereign funds have gradually increased their exposure to foreign equity markets. However, a decline in global equity markets in 2015 in both developed and developing countries has negatively impacted returns. The funds, which are accountable to their governments and citizens, have already started to reassess their diversified assets strategy and change their global investments………………………………………..Full Article: Source

Hedge Funds Raise Bets on Dollar Gains for Fifth Straight Week

Posted on 01 December 2015 by VRS  |  Email |Print

Bets on further appreciation versus eight major peers outweighed those on a slump by a net 428,298 contracts in the week through Nov. 24, according to a release from the Commodity Futures Trading Commission. That’s up from 411,208 contracts a week earlier.
Speculators are seeking to capitalize on any dollar strength that stems from an increase in U.S. interest rates next month. The Fed will consider whether it’s appropriate to raise rates from near zero, where they’ve been since 2008, when it meets Dec. 15-16. That contrasts with a wave of easing elsewhere that will likely see the European Central Bank add stimulus on Dec. 3………………………………………..Full Article: Source

Undone by the commodity rout

Posted on 30 November 2015 by VRS  |  Email |Print

If you put money in India-based global commodity and energy funds, there’s reason to be glum. The three funds in this category — Birla Sun Life Global Commodities Fund, DSP BR World Energy Fund and Mirae Asset Global Commodity Stock Fund — suffered deep cuts last year, losing 16-26 per cent.
These funds essentially bet on global commodities, which have been routed since mid-2014. Crude oil and natural gas have more than halved, while the prices of copper, tin, lead and zinc are down 20-30 per cent. A combination of factors — weak demand from a slowing China, economic troubles in Europe, oversupply of many commodities, and a strong dollar, thanks to impending rate hike in the US — is to blame. No surprise then that the funds’ performances don’t paint a pretty picture………………………………………..Full Article: Source

Here’s Why You Shouldn’t Currency Hedge

Posted on 26 November 2015 by VRS  |  Email |Print

Currency-hedged ETFs are gathering assets hand over fist. With central banks engaged in a race to the bottom, hedging currency exposure is vital to protecting assets and capturing returns. This topic is so popular that it’s the title of a panel at the Inside ETFs conference coming in late January. Here’s why you shouldn’t take the bait …
It’s absolutely natural to want to hedge international stocks—especially now. U.S. stocks have trounced international stocks in large part due to the soaring U.S. dollar. Not only is money flowing into hedged international stock funds, even legendary passive investor Burton Malkiel has wandered off the random walk and is chair of a new hedged emerging markets stock fund………………………………………..Full Article: Source

Hedge funds’ defensive stance on commodities pays off

Posted on 25 November 2015 by VRS  |  Email |Print

The defensive positioning of hedge funds on the commodity complex has been rewarding as most hedge fund strategies are up in November and previous trends in FX and commodities continue unabated, according to Lyxor Asset Management’s Weekly Briefing. The renewed fall in commodity prices has triggered another leg down in energy stocks in November, Lyxor said.
Lyxor AM senior strategist Philippe Ferreira commented, “CTAs outperformed last week as a result of their aggressive short positioning on commodities. Their long fixed income positions also benefitted from the deflationary pressures arising from the fall in commodity prices. In that respect, it is interesting to note that CTAs are rapidly adjusting their long fixed income positions downwards……………………………………….Full Article: Source

Hedge funds have never been this bearish on commodities

Posted on 24 November 2015 by VRS  |  Email |Print

Large scale futures investors like hedge funds or so-called managed money have entered an unprecedented bearish position towards commodities markets. According to the Commodity Futures Trading Commission’s weekly Commitment of Traders data, five weeks of selling has seen 13 of the 24 commodities tracked pushed into net short positions.
Thos include the major commodities like crude oil, gasoline, gold, copper, soybeans, corn and wheat where speculators are betting that these commodities will be cheaper in future………………………………………..Full Article: Source

Hedge funds near-eliminate their net long in ags

Posted on 24 November 2015 by VRS  |  Email |Print

Hedge funds all but wiped out their net long position in derivatives in the main agricultural commodities, led by selldowns in coffee, and in wheat, in which unexpectedly bearish positioning could set the scene for a price bounce.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to cotton, by a little over 59,000 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Hedge funds turn very bearish on U.S. crude: Kemp

Posted on 24 November 2015 by VRS  |  Email |Print

Hedge funds and other money managers had amassed short positions in U.S. crude oil amounting to 154 million barrels by last Tuesday according to data from the U.S. Commodity Futures Trading Commission (CFTC).
Short positions have increased more than 70 percent since the middle of October and stand at the highest level since August, the CFTC showed in its latest commitments of traders report published on Friday. The number of hedge funds with reported short positions of at least 350,000 barrels in the main WTI contract on the New York Mercantile Exchange hit 69 last week, the largest number since April……………………………………….Full Article: Source

Gold price: Hedge funds can’t exit market fast enough

Posted on 24 November 2015 by VRS  |  Email |Print

Settling at $1,065.00 gold is down $110 an ounce or just under 10% from where it was trading just before the Federal Reserve’s interest rate announcement last month which opened the door for a rate rise – which would be the first in nine years – when the bank next meets in December.
The likelihood that Fed will raise rates from near zero where they have been since December 2008, before the end of the year prompted large futures speculators or “managed money” investors such as hedge funds to dramatically raise bearish bets on the metal………………………………………..Full Article: Source

Hedge Funds Are Back to Bearish on Gold as Price Slump Deepens

Posted on 23 November 2015 by VRS  |  Email |Print

Hedge funds are betting gold’s decline is far from over, as the metal’s month-long slide deepened on expectations for higher U.S. interest rates. Prices are trapped in their worst rout since July as Federal Reserve officials talk up improvements for the U.S. economy and reinforce signs that they’re ready to raise borrowing costs for the first time since 2006.
That prospect has sent investors fleeing. Assets in exchange-traded products backed by gold have fallen to the lowest since 2009. Money managers are holding a net-short position in the metal for first time since August as their long wagers shrunk to the smallest in seven years………………………………………..Full Article: Source

Hedge Funds Add to Bullish Dollar Wagers as Fed Decision Nears

Posted on 18 November 2015 by VRS  |  Email |Print

Currency traders are growing more bullish on the dollar as a consensus builds that the Federal Reserve is approaching liftoff. The greenback climbed to a seven-month high against the euro after data showed U.S. inflation and factory output increased in October, fueling speculation the U.S. central bank will raise interest rates from near zero as soon as next month.
The rally comes as hedge funds and other large speculators boosted wagers on dollar gains versus eight major currencies by a net 198,491 contracts over the past three weeks, the biggest jump since March 2013, according to data through Nov. 10 from the Commodity Futures Trading Commission………………………………………..Full Article: Source

What fund managers get wrong about commodities?

Posted on 12 November 2015 by VRS  |  Email |Print

Many investors misunderstand commodities. After this year’s torrid performance, it is time to question commodities’ perceived special status as a play on growth and a portfolio diversifier. What once looked like an asset class with unique attributes, now just looks like a way to lose money.
Yet it may be a human weakness to be impressed by the apparent solidity of commodities and their seeming permanence. In a world of abstract securities, physical resources seem to represent something tangible and understandable. Investors need to re-examine the case for commodities with less emotion………………………………………..Full Article: Source

What fund managers get wrong about commodities?

Posted on 12 November 2015 by VRS  |  Email |Print

Many investors misunderstand commodities. After this year’s torrid performance, it is time to question commodities’ perceived special status as a play on growth and a portfolio diversifier. What once looked like an asset class with unique attributes, now just looks like a way to lose money.
Yet it may be a human weakness to be impressed by the apparent solidity of commodities and their seeming permanence. In a world of abstract securities, physical resources seem to represent something tangible and understandable. Investors need to re-examine the case for commodities with less emotion………………………………………..Full Article: Source

Commodity Funds Planned

Posted on 12 November 2015 by VRS  |  Email |Print

Elkhorn Investmfoents, the firm founded by former Invesco PowerShares head Ben Fulton, has filed for two new funds covering the commodity futures space. The Elkhorn S&P GSCI Dynamic Roll Commodity ETF and the Elkhorn RAFI Commodity ETF will both offer actively managed exposure to commodities with a smart-beta twist.
The former, according to its prospectus, is actively managed. It invest in commodities included in the S&P GSCI Dynamic Roll Index to a certain extent but will also include an actively managed portfolio of very liquid and short-duration, high-quality bonds in an effort to achieve excess returns………………………………………..Full Article: Source

Gold price: Hedge funds ready to dump 430 tonnes

Posted on 04 November 2015 by VRS  |  Email |Print

Gold is looking vulnerable ahead of Friday’s US job numbers. On Tuesday on the Comex market in New York, gold futures with December delivery dates fell for a fifth session in a row giving up more than $20 an ounce to trade at a one month low.
Settling at $1,114.10, gold is down nearly $70 an ounce or 6% from where it trading just before the Federal Reserve’s interest rate announcement last week which opened the door for a rate rise when the bank next meets in December. Higher interest rates boost the value of the dollar and makes gold less attractive as an investment because the metal is not yield-producing and Friday’s employment figures in the US will give the clearest indication whether the Fed lift rates from near zero where they have been since December 2008………………………………………..Full Article: Source

Hedge Funds Burned by Silver Bets as Fed Signals Rates May Climb

Posted on 04 November 2015 by VRS  |  Email |Print

Hedge funds picked the wrong time to build their bullish silver bets to a record. Prices have dropped almost 4 percent since last Tuesday, when the funds’ wagers reached their peak. That’s the biggest such loss since July.
A day after the speculators boosted their net-long positions in silver futures and options to the highest since 2006, the oldest government data available, Federal Reserve officials signaled U.S. interest rates could climb in December. The threat of higher rates by year-end has sent ripples through precious metals, which lose out when monetary policy tightens because they don’t pay interest or dividends………………………………………..Full Article: Source

Hedge funds up short bets on oil again

Posted on 03 November 2015 by VRS  |  Email |Print

Oil prices came under renewed pressure Monday as data revealed that hedge funds had upped their short positions on U.S. crude last week, as the strength of China’s economy continues to weigh on commodity prices.
Data from the CFTC’s (U.S. Commodity Futures Trading Commission) commitment of traders report Friday showed that managed money traders, which largely refers to hedge fund activity, showed some 27,694 short contracts were added last week. These are essentially traders taking bets that the price of oil will fall and compared to 7,073 long contracts that were added in the week ending October 27………………………………………..Full Article: Source

Alternative funds are taking center stage

Posted on 28 October 2015 by VRS  |  Email |Print

With the stock market careening wildly of late, it’s no surprise that investors are looking for alternatives. Nearly $4 billion flowed into alternative investment funds — often called liquid alt funds — in July, August and September, according to data from research firm Morningstar, and they have had nearly $10 billion in net inflows since the beginning of the year.
The funds invest in a wide range of asset classes and use hedge fund–like trading strategies with the objective of producing returns not closely correlated with stocks or bonds………………………………………..Full Article: Source

Hedge funds get gold wagers wrong again

Posted on 27 October 2015 by VRS  |  Email |Print

Gold prices are befuddling hedge funds, which are posting a track record no better than a coin flip when it comes to betting on the metal. The funds and other money managers have placed wrong-way wagers on gold in five of the past nine weeks, US government data show. Last week, speculators increased their net-bullish position to the highest since February just before the biggest price drop since August.
The precious metal has fluctuated between year-to-date gains and losses more than a dozen times in 2015 as traders weigh a dimming global economic outlook against the prospect for higher US borrowing costs………………………………………..Full Article: Source

Gold price: Hedge funds push bullish bets to 8-month high

Posted on 27 October 2015 by VRS  |  Email |Print

On Monday, gold consolidated some of its recent gains ahead of a crucial US Federal Reserve decision on interest rates this week. On the Comex market in New York, gold futures with December delivery dates were largely unchanged at $1,164.10, up $1.40 compared to Friday’s close in quiet and cautious trade.
Gold remains up some 5% from where it was trading before the US Federal Reserve at its September meeting decided not to lift rates from near-zero, where it has been since the global financial crisis. October 15 gold hit its highest level since June 22, amid fresh indications that a limp US economy may push the first rate hike in nine years further into the future………………………………………..Full Article: Source

Hedge funds turn bearish on wheat at fastest pace on record

Posted on 27 October 2015 by VRS  |  Email |Print

Hedge funds sold wheat at the fastest rate on record as forecasts for rain eased concerns over autumn-sown crops in the former Soviet Union and US, but speculators maintained their faith in a sugar rally. Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to cattle, by nearly 77,000 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.
The cut in the net long - the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when prices fall – was the first in a month………………………………………..Full Article: Source

Hedge Funds Are Getting Their Gold Bets Wrong

Posted on 26 October 2015 by VRS  |  Email |Print

Gold prices are befuddling hedge funds, which are posting a track record no better than a coin flip when it comes to betting on the metal. The funds and other money managers have placed wrong-way wagers on gold in five of the past nine weeks, U.S. government data show.
Last week, speculators increased their net-bullish position to the highest since February just before the biggest price drop since August. The precious metal has fluctuated between year-to-date gains and losses more than a dozen times in 2015 as traders weigh a dimming global economic outlook against the prospect for higher U.S. borrowing costs………………………………………..Full Article: Source

Hedge funds suffer biggest quarterly drop in assets since 2008: data

Posted on 21 October 2015 by VRS  |  Email |Print

Hedge funds suffered their biggest quarterly loss in assets since the financial crisis during the three months that ended in September, data released on Tuesday showed, putting the industry on track for its worst year since 2008.
The secretive industry that caters to wealthy investors, including pension funds and endowments, saw assets shrink by $95 billion, or 3.9 percent, to 2.87 trillion in the third quarter, research and tracking firm Hedge Fund Research reported. The declines were driven by heavy losses when markets were roiled by concerns about slowing growth in China, sliding commodities prices and a likely U.S. Federal Reserve interest rate hike………………………………………..Full Article: Source

Hedge funds, again, lift bets on ag commodity price rises

Posted on 20 October 2015 by VRS  |  Email |Print

Agricultural commodities grew further in affections of hedge funds, who extended upbeat bets on sugar to a 15-month top, with hogs firmly in favour too, although sentiment cooled towards the main Chicago grains.
Managed money, a proxy for speculators, raised by more than 57,000 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 say commodities rally not backed by fundamentals

Posted on 13 October 2015 by VRS  |  Email |Print

The stunning rally in commodity-related stocks on the Australian sharemarket may be a sign investors are becoming comfortable with the outlook for China, but the underlying challenges facing the sector remain, fund managers warn.
A rally that led the S&P/ASX 200 to post its best week in almost four years on Friday was fuelled by strong buying in energy and mining companies. Since September 29, when the market plummeted 4 per cent to close at its lowest point in two years, the materials sub-index has soared 14.2 per cent, while energy has risen 17.7 per cent………………………………………..Full Article: Source

Hedge funds playing ‘dangerous game’ with copper, Rio says

Posted on 13 October 2015 by VRS  |  Email |Print

Hedge funds betting that copper will drop further are playing a “dangerous game” with prices, according to the head of copper at Rio Tinto Group, the world’s second-biggest mining company. The metal is “not trading on fundamentals,” Rio Copper & Coal Chief Executive Officer Jean-Sébastien Jacques said in an interview in London.
“There is lots of short-selling in copper and we’ve seen the pick up in terms of short-selling in copper on the back of what happened in China a few months ago.” A glut of copper has exacerbated short-selling by hedge funds and China’s move in August to restrict such sales in equities has prompted funds to redirect bearish bets on the nation’s economy to copper, Jacques said………………………………………..Full Article: Source

Korea to allow pension funds to invest in ETFs

Posted on 05 October 2015 by VRS  |  Email |Print

The financial regulator said Sunday that it will allow public and private pension funds to invest in exchange traded funds in a bid to provide a safer and decent yield-generating investment tool in the low rate environment.
An ETF refers to an investment fund traded on stock exchanges and represents a basket of stocks that reflects an index, which provides retail investors and institutions with a more liquid and risk-hedging tool. The Financial Services Committee will revise related regulations to let the National Pension Service, the country’s largest institutional investor, and individual pensions include the ETFs in their investment portfolios………………………………………..Full Article: Source

Funds Who Speculated Against Danish Currency Told to Drop Hedges

Posted on 02 October 2015 by VRS  |  Email |Print

Denmark’s government is warning its pension funds never to bet against their own currency regime again. “There’s no need to speculate against the krone, not even for the purposes of risk management,” Business Minister Troels Lund Poulsen said Thursday in an e-mailed response to questions. The krone’s peg to the euro “is not up for discussion.”
Denmark’s fixed currency regime was attacked in January, after Switzerland’s decision to send its franc into a free float spurred conjecture the krone might be next. Unlike their Swiss counterparts, Danish policy makers prevailed and hedge funds and other speculators were beaten back………………………………………..Full Article: Source

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