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Global hedge funds recover in April on resurging energy commodities

Posted on 05 May 2016 by VRS  |  Email |Print

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

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

Posted on 04 May 2016 by VRS  |  Email |Print

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

Oil rally is not just about hedge funds: Kemp

Posted on 03 May 2016 by VRS  |  Email |Print

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

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

Posted on 02 May 2016 by VRS  |  Email |Print

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

Commodity hedge funds outshine other hedge funds

Posted on 29 April 2016 by VRS  |  Email |Print

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

Commodity hedge funds are hot again

Posted on 27 April 2016 by VRS  |  Email |Print

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

Commodity Hedge Funds Are Hot Again

Posted on 26 April 2016 by VRS  |  Email |Print

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

Hedge Funds Losing Investors, Goldman Seeking Customers – Podcast

Posted on 26 April 2016 by VRS  |  Email |Print

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

Hedge funds go long on commodities

Posted on 22 April 2016 by VRS  |  Email |Print

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

Hedge funds bet on tightening oil market despite Doha debacle

Posted on 21 April 2016 by VRS  |  Email |Print

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

Copper lifts as funds buy base metals

Posted on 19 April 2016 by VRS  |  Email |Print

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

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

Posted on 18 April 2016 by VRS  |  Email |Print

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

Indian regulator seeks to ramp up hedging in commodities

Posted on 14 April 2016 by VRS  |  Email |Print

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

Currency-Hedged Funds—Safer or Riskier Thanks to Derivatives?

Posted on 12 April 2016 by VRS  |  Email |Print

A government proposal meant to limit the use of risky derivatives could hamper an increasingly popular breed of mutual funds that hedge against currency risks. Individual investors in recent years have flocked to mutual funds and exchange-traded funds that try to minimize the impact of currency moves on their investments in foreign assets.
Now, rules being considered by the Securities and Exchange Commission to limit mutual funds’ use of derivatives broadly could make it harder, or more expensive, for the currency-hedging funds to hedge their risk………………………………………..Full Article: Source

Investors Rush to Snap Up Gold Funds as Price Bounces

Posted on 08 April 2016 by VRS  |  Email |Print

Investors are welcoming gold funds back into their portfolios in a big way, encouraged by significant gold price rally and a low interest rate environment, Morningstar data shows. The gold price has rallied 16% year to date, and the funds in the precious metal equities sector are feeling the benefits.
The precious metals equity fund sector posted inflows of £193 million from December 2015 to February this year; its largest quarterly inflows in nearly three years as expectations for an interest rate rise in the UK faded. Omitting the inflows in December, the sector recorded a massive inflow of £185 million in the first two months of this year, according to Morningstar Direct………………………………………..Full Article: Source

Gold Funds See Outflows after Touching a 2-Year High

Posted on 07 April 2016 by VRS  |  Email |Print

The precious metals have been on a southward journey in the last couple of days. The fall of the precious metals has likely been due to the diminishing safe-haven appeal of the bullions. Initially, investors were likely sticking to gold as most of the other assets in the economy were underperforming.
However, the recent fall in the bullions has curbed the fund flows in gold. The SPDR Gold Shares ETF (GLD) had seen remarkable fund infows since the begining of 2016. However, the consistent inflows turned into outflows as the metal started to fall………………………………………..Full Article: Source

Hedge funds up bullish bets on rising oil prices

Posted on 31 March 2016 by VRS  |  Email |Print

Hedge funds and other money managers have amassed a near-record number of bullish bets on increasing oil prices, helping push the main international benchmark well above $40 per barrel.
By the close of business on March 22, money managers held a net long position equivalent to almost 579 million barrels in the three largest crude oil futures and options contracts. Hedge funds have more than doubled their net long position from just 242 million barrels at the end of last year, according to an analysis of data published by regulators and exchanges………………………………………..Full Article: Source

Funds Look For a Bottom In Commodity Prices: Scotiabank

Posted on 30 March 2016 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index edged down in February by -0.3% m/m (-25.0% yr/yr) — the fourth consecutive monthly decline — but is expected to rally significantly in March. Commodity prices have rebounded across a broad front since mid-February amid some easing in concern over the outlook for China’s economy and a weaker U.S. dollar.
“Equally important, hedge & investment funds appear to be looking for reasons to bid commodity prices higher, after the rout of recent years. The Scotiabank Commodity Price Index is currently at a more than a decade low,” said Patricia Mohr, Vice President of Economics and Commodity Market Specialist at Scotiabank………………………………………..Full Article: Source

China mutual funds turn to commodities, bet on reforms

Posted on 29 March 2016 by VRS  |  Email |Print

China’s mutual fund industry is pushing to develop investment products linked to local commodity futures, betting that plans to fight chronic oversupply in the country’s mammoth resource sector will drive up prices for raw materials.
The funds want to branch out beyond their traditional focus on stocks and fixed-income, with no immediate upturn in sight in the wake of turmoil last year that pulled down share markets by nearly 50 per cent and forced bond yields to multi-year lows………………………………………..Full Article: Source

Australia announces A$1 billion clean energy fund, in break with past

Posted on 23 March 2016 by VRS  |  Email |Print

Australian Prime Minister Malcolm Turnbull on Wednesday said the country would establish a A$1 billion (535.7 million pounds) clean-energy innovation fund, in a major departure from his predecessor’s much maligned approach to combating climate change.
Conservative former Prime Minister Tony Abbott was criticised by environmental groups for lagging behind other advanced economies when he announced cuts to Australia’s greenhouse gas emissions last year………………………………………..Full Article: Source

Commodity Fund Hires Former Tudor, Ospraie, Tigris Managers

Posted on 22 March 2016 by VRS  |  Email |Print

Argon Capital Management appointed former executives of Tudor Investment, Ospraie Management and Tigris Financial to head the commodities fund’s energy, metals and macro strategies.
The New York-based firm hired Jeffrey Halpern as chief risk officer, co-founder Marcos Bueno said Monday. Halpern, who performed a similar role at Credit Suisse and Moore Capital, will work with newly appointed senior portfolio managers and partners John Curran, Andrew Suckling and Pasha Bahadori………………………………………..Full Article: Source

Cash out, commodities up: global fundie survey

Posted on 17 March 2016 by VRS  |  Email |Print

Fund managers are finally spending their cash hoardings, according to Morgan Stanley’s global fund manager survey for March - with commodities a favourite target. The survey was taken between March 4 and March 10, when global markets were rallying, risk was back in favour, and commodities had seemingly bottomed.
The top ten survey takeaways, as judged by Morgan Stanley, were: Cash holdings fell from 5.6 per cent in February - the highest figure since November 2001 - to 5.1 per cent. The allocation to commodities went from net 29 per cent underweight to net 13 per cent underweight - the biggest month-on-month jump since records began in 2006. The current figure, a nine-month high, is still 0.6 standard deviations below the long-term average………………………………………..Full Article: Source

Managers make record increase to commodity allocations

Posted on 17 March 2016 by VRS  |  Email |Print

Fund managers made their largest month-on-month increase in commodities allocations on record in March, the Bank of America Merrill Lynch fund manager survey shows. Allocations to commodities have jumped to a nine-month high, rising to a net 13 per cent underweight from a net 29 per cent underweight last month.
The rise is the biggest month-on-month jump on record since 2006, the survey finds. Allocations to real estate also jumped to a net 11 per cent overweight from a net 1 per cent overweight in February………………………………………..Full Article: Source

Hedge funds step up bets on commodity market revival

Posted on 16 March 2016 by VRS  |  Email |Print

After deserting commodities markets during last year’s slide, some hedge funds are starting to move back in, betting a recent pick-up in energy prices could signal a turning point. A handful of managers are weighing up new specialist hedge funds, industry data shows, while some funds are stepping up exposure to energy markets and oil in particular.
Leading commodities indexes rallied on Friday after the International Energy Agency (IEA) signalled a possible floor in the price of oil which has slumped 65 percent since June 2014, hitting global growth and stocks………………………………………..Full Article: Source

Fund Managers Cut Cash, Buy Commodities and Emerging Markets

Posted on 16 March 2016 by VRS  |  Email |Print

Global fund managers have become more optimistic about financial markets, especially those that have been out of favor such as commodities, including energy, emerging markets and high-yield debt.
According to the Bank of America Merrill Lynch Fund Manager Survey for March, managers have cut cash levels to 5.1% from 5.6% in February — their highest level in more than 14 years — while increasing allocations to industrials, commodities, energy, materials, emerging markets and high yield. The survey records changes in allocations between mid-February and mid-March………………………………………..Full Article: Source

Hedge funds step up bets on commodity market revival

Posted on 15 March 2016 by VRS  |  Email |Print

After deserting commodities markets during last year’s slide, some hedge funds are starting to move back in, betting a recent pick-up in energy prices could signal a turning point. A handful of managers are weighing up new specialist hedge funds, industry data shows, while some funds are stepping up exposure to energy markets and oil in particular.
Leading commodities indexes rallied on Friday after the International Energy Agency (IEA) signaled a possible floor in the price of oil LCOc1 which has slumped 65 percent since June 2014, hitting global growth and stocks………………………………………..Full Article: Source

Hedge Funds Turn Bullish on Oil Despite Glut

Posted on 03 March 2016 by VRS  |  Email |Print

Several hedge funds are starting to bet that assets in the battered energy sector are through the worst of their dismal run. Oil is down nearly 70% since June 2014, and analysts say there are few signs that the global oversupply of crude will soon abate.
But some hedge-fund managers have recently started betting on rising oil prices, or picking up the stocks or credit of battered energy companies in the belief that prices have dropped too far………………………………………..Full Article: Source

The Rise and Fall of Commodities Hedge Fund King Willem Kooyker

Posted on 02 March 2016 by VRS  |  Email |Print

Thirty miles west of Wall Street, in an anonymous office park set among rolling hills and shady streets, lurks a giant of the commodities world. Behind the bland facade in Berkeley Heights, New Jersey, lies the headquarters of Willem Kooyker, one of the most powerful and enigmatic traders in the game.
For half a century, Kooyker has quietly ridden the ups and downs of oil, copper, cocoa and more, first in his native Holland and later at Commodities Corp., the legendary trading-company-cum-think-tank that served as a training ground for market wizards Paul Tudor Jones, Louis Bacon and Bruce Kovner………………………………………..Full Article: Source

Hedge funds turn attention to oil storage: Kemp

Posted on 23 February 2016 by VRS  |  Email |Print

Hedge funds have taken an increasingly nuanced position on oil prices since the start of the year, becoming more bearish towards U.S. crude but bullish towards Brent. The latest data from the U.S. Commodity Futures Trading Commission and exchanges show hedge funds and other money managers running near record long and short positions in oil derivatives.
Hedge funds are running combined long positions of 688 million barrels in the three main WTI and Brent contracts on ICE and NYMEX, just 3 percent below the record of 711 million barrels………………………………………..Full Article: Source

Hedge funds ’surprise’ in raising net short in ags to record high

Posted on 23 February 2016 by VRS  |  Email |Print

Hedge funds defied expectations of many investors and lifted their net short position in US-traded ags to the highest on record – although in a move which is leaving many late movers looking at losses.
Managed money, a proxy for speculators, raised by nearly 8,000 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 Looking For Safe Havens, Driving Speculative Gold Market - CFTC

Posted on 16 February 2016 by VRS  |  Email |Print

Gold continues to benefit from renewed buying interest and short covering from hedge funds and money managers, but analysts are mixed as to how long this trend can last.
According to the disaggregated Commitment of Trader Report for the week ending Feb. 9, money managers increased their speculative gross long position in Comex gold futures by 20,493 contracts to 121,059. At the same time, short bets fell by 11,107 contracts to 60,423. The latest data shows the gold market is net long by 60,636 contracts………………………………………..Full Article: Source

Hedge funds hike bearish ag bets, amid ‘weak macros, rising stocks’

Posted on 16 February 2016 by VRS  |  Email |Print

Hedge funds have undertaken a dramatic shift bearish in their positioning on agricultural commodities, building a record net short position in hard wheat, and selling down in cotton at a record rate.
Managed money, a proxy for speculators, hiked its net position in futures and options in the top 13 US-traded agricultural commodities by 176,017 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission shows. The dramatic turn bearish in positioning drove the overall net short to 187,671 contracts – the second highest on records going back to 2006………………………………………..Full Article: Source

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

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