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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

Gold Bulls Extend 2014 Exit as Slump Erases $6.7 Billion

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, U.S. government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

Funds and ETFs magnify EM volatility

Posted on 18 September 2014 by VRS  |  Email |Print

Emerging equity markets are taking another lurch. The reasons are well rehearsed: angst about the future actions of the Federal Reserve occasionally prompts western investors to pull back their money in a hurry.
But the extent of the volatility over the past 18 months goes beyond that simple analysis. Why are emerging markets so jumpy? The answer has much to do with the way fund managers channel money to the emerging world…………………………………….Full Article: Source

Commodity Funds Are Struggling in Low-Volatility Environment

Posted on 17 September 2014 by VRS  |  Email |Print

Commodity hedge funds, which tend to perform the best when volatility spikes, have suffered in some areas this year with wrongly timed bets. Winners include Duet Commodities, Cumulus Energy, Merchant Commodity, whereas Brevan Howard Commodities Fund, Armajaro Commodities and Andurand Capital had a tough run through most of the year.
The recent surge in volatility has helped some, but most of the gains came from natural gas and soft commodities. Oil and precious metals have not done any favors to hedge funds who had major positions as prices tumbled………………………………………Full Article: Source

Hedge Funds Cut Bullish Crop Bets to Lowest Since January

Posted on 15 September 2014 by VRS  |  Email |Print

Hedge funds cut bullish wagers on agricultural commodities to the lowest since January before the U.S. forecast rising grain supplies and sent wheat, corn and soybean prices to four-year lows. Money managers lowered their net-long position on crops from coffee to wheat in 10 of the past 11 weeks, U.S. government data show. Investors got more bearish on sugar and have the most-negative outlook on soybeans since 2006.
American farmers will collect the biggest corn and soybean crops ever this season, while global wheat reserves are set to reach a three-year high, the U.S. Department of Agriculture said Sept. 11. Three months of rain and mild weather created almost ideal growing conditions, spurring price declines that drove the Bloomberg Commodity Index to a five-year low last week………………………………………..Full Article: Source

U.S. CFTC to allow commodity hedge funds to advertise to public

Posted on 11 September 2014 by VRS  |  Email |Print

U.S. derivatives regulators are removing a legal hurdle, which will open the door for hedge funds and other private funds to reach new investors through television, the Internet and other media channels. The Commodity Futures Trading Commission announced the move late on Tuesday in a staff “exemptive” letter to the industry.
The CFTC’s decision to permit private funds to advertise reflects an effort to harmonize outdated rules that conflict with a 2012 law that lifted an 80-year-old advertising ban for hedge funds and other private investment vehicles………………………………………..Full Article: Source

Funds Continue To Exit Bullish Gold, Silver Positions In Latest CFTC Data

Posted on 09 September 2014 by VRS  |  Email |Print

Large speculators again cut their net-long gold and silver futures and options holdings on the Comex division of the New York Mercantile Exchange in the latest Commodity Futures Trading Commission data for the week ended Sept. 2, following the same action seen in the previous week’s report.
These traders’ activity in platinum group metals and copper was mixed between the legacy and the disaggregated reports, with non-commercial traders returning to a net-short position in copper’s legacy data………………………………………..Full Article: Source

Hedge Funds Reduce Bullish Gas Bets as Volatility Slides

Posted on 09 September 2014 by VRS  |  Email |Print

Hedge fund bulls accelerated their withdrawal from U.S. natural gas markets as volatility and prices declined on abundant supply. Speculators cut their net-long position across four benchmark contracts by 11 percent in the week ended Sept. 2, the most in three weeks, U.S. Commodity Futures Trading Commission data show. Bullish wagers have declined for six consecutive months, the most in data compiled by Bloomberg since 2010. Short positions rose to a nine-month high.
Prices have swung in the narrowest range for this time of year since 2009 as output and stockpiles increased at a record pace. The producers and consumers who trade with speculators have cut their holdings in gas by 25 percent from a record in April 2013, a sign they’re less concerned about price movements………………………………………..Full Article: Source

Hedge Funds Cut Bullish Gas Bets as Volatility Slides

Posted on 08 September 2014 by VRS  |  Email |Print

Hedge fund bulls accelerated their withdrawal from U.S. natural gas markets as volatility and prices declined on abundant supply. Speculators cut their net-long position across four benchmark contracts by 11 percent in the week ended Sept. 2, the most in three weeks, U.S. Commodity Futures Trading Commission data show.
Bullish wagers have declined for six consecutive months, the most in data compiled by Bloomberg since 2010. Short positions rose to a nine-month high………………………………………..Full Article: Source

3 Top-Rated Precious Metals Funds Set to Outperform

Posted on 05 September 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

Commodity Trade Finance: uncovering the Opportunities in Africa

Posted on 04 September 2014 by VRS  |  Email |Print

In a recent Opalesque Radio interview with Sona Blessing, Nicolas Clavel, founder and chief investment officer of Scipion Capital, an investment manager specialising in self-liquidating short-term Commodity Trade Finance (CTF) with a focus on Africa, elaborates on the commodity trade finance opportunities, the hurdles and their ability to deliver consistent risk-adjusted returns.
From a sector perspective, the commodity trade finance fund focuses on minerals and agricultural commodities produced in Africa, which then tend to be shipped to destinations such as (mainly) China and Europe. The fund also finances the import of commodities into Africa, which is in sync with the continent’s growth and lack of available supplies for high in demand inputs such as cement and diesel………………………………………..Full Article: Source

Hedge funds cut gold bullish bets as bullion recovery stalls

Posted on 02 September 2014 by VRS  |  Email |Print

Prices fall 2.6 per cent since June as signs of faster US growth fortifies the case for an interest-rate rise and reduces bullion’s value as a haven. After gold’s rally in the first half of the year beat gains for commodities, equities and Treasuries, bullion is back to being out of favour with investors.
Hedge funds cut their bullish gold bets for the fourth week in five, sending holdings to a two-month low, United States government data shows. Open interest in New York futures is the smallest in five years, and assets in global exchange-traded products backed by the metal in August posted the biggest monthly drop since May………………………………………..Full Article: Source

Cotton, sugar u-turns slow hedge funds’ ag selling

Posted on 02 September 2014 by VRS  |  Email |Print

Hedge funds’ selldown in the agricultural commodity complex slowed to a crawl as they turned less negative on cotton and sugar, offsetting in part continued bearish positioning in livestock and soybeans.
Managed money, a proxy for speculators, reduced its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to corn, by 3,844 lots in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Hedge Funds Cut Gold Bull Bets to Lowest Since June

Posted on 01 September 2014 by VRS  |  Email |Print

After gold’s rally in the first half of the year beat gains for commodities, equities and Treasuries, bullion is back to being out of favor with investors. Hedge funds cut their bullish gold bets for the fourth week in five, sending holdings to a two-month low, U.S. government data show. Open interest in New York futures is the smallest in five years, and assets in global exchange-traded products backed by the metal in August posted the biggest monthly drop since May.
Gold prices fell 2.6 percent since June, heading the first quarterly loss this year, as signs of faster U.S. economic growth bolstered the case for the Federal Reserve to raise interest rates, cutting demand for an inflation hedge. Holdings through ETPs slumped for the fourth time in five months as escalating violence from Ukraine to the Middle East wasn’t enough to revive buying………………………………………..Full Article: Source

Africa’s Biggest Fund Manager Favors Platinum Equities Over Gold

Posted on 01 September 2014 by VRS  |  Email |Print

Africa’s biggest fund manager favors South African platinum equities over those of gold, betting against the price performance of the metals and the share performance of the companies that mine them..
The Pretoria, South Africa-based Public Investment Corp., which manages the equivalent of $1.5 billion, is the biggest or second-largest shareholder in South Africa’s four biggest gold producers and two largest platinum miners, according to data compiled by Bloomberg………………………………………..Full Article: Source

Hedge funds continue bearish positions on commodities

Posted on 27 August 2014 by VRS  |  Email |Print

Hedge funds have extended their misfortune on agricultural commodities, as increasingly negative sentiment on sugar and livestock more than offsets a reevaluation of laid-back positioning on wheat.
According to data from the Commodity Futures Trading Commission regulator, managed money cuts its net long position in futures and options in the top 13 U.S.-traded agricultural commodities from coffee to corn by more than 18,000 contracts in the week leading up to last Tuesday. It was the eighth consecutive week in which hedge funds reduced their net long………………………………………..Full Article: Source

Fund Managers Cut Most Precious Metals Positions In Latest CFTC Data

Posted on 27 August 2014 by VRS  |  Email |Print

Large speculators cut their net-long gold futures and options holdings on the Comex division of the New York Mercantile Exchange in the latest Commodity Futures Trading Commission data for the week ended Aug. 19, reversing some of the gains established in the last report.
The retreat came as geopolitical fears subsided and pushed the yellow metal under $1,300 an ounce during that timeframe. Platinum group metals activity was mixed, with large speculators adding to bullish palladium holdings and dropping platinum. These traders continued to trim net-long silver positions and cut their exposure in copper , too………………………………………..Full Article: Source

Fund Managers Cut Most Precious Metals Positions In Latest CFTC Data

Posted on 26 August 2014 by VRS  |  Email |Print

Large speculators cut their net-long gold futures and options holdings on the Comex division of the New York Mercantile Exchange in the latest Commodity Futures Trading Commission data for the week ended Aug. 19, reversing some of the gains established in the last report.
The retreat came as geopolitical fears subsided and pushed the yellow metal under $1,300 an ounce during that timeframe. Platinum group metals activity was mixed, with large speculators adding to bullish palladium holdings and dropping platinum. These traders continued to trim net-long silver positions and cut their exposure in copper, too………………………………………..Full Article: Source

Hedge Fund Citrine Sees Zinc, Nickel as Best Base Metal Bets

Posted on 26 August 2014 by VRS  |  Email |Print

Zinc and nickel will probably lead advances in base metals next year as global demand outstrips production, according to Paul Crone, chief investment officer at Citrine Capital Management LLC.
Zinc may rally to $2,500 to $2,700 a metric ton, as much as 15 percent higher than last week, said Crone, who manages more than $200 million at the New York-based hedge fund and has traded metals for a quarter of a century. Nickel may rise 23 percent to $23,000 as Indonesia’s ban on raw ore exports cuts supply, Crone said in a phone interview on Aug. 21………………………………………..Full Article: Source

Hedge Fund Crude Bets Tumble Amid Surging Global Supply

Posted on 25 August 2014 by VRS  |  Email |Print

Speculators are the least bullish on U.S. crude oil prices in 16 months as refinery maintenance weakens demand at a time when Libya and Iraq are swelling global supplies.
Futures dropped a fifth consecutive week after money managers reduced net-long positions in West Texas Intermediate, the U.S. benchmark grade, by 14 percent in the seven days ended Aug. 19, the Commodity Futures Trading Commission said………………………………………..Full Article: Source

Avoid hedge funds’ ETF termite problem

Posted on 25 August 2014 by VRS  |  Email |Print

Some of the smartest investors are bad role models in their choice of exchange-traded funds, which are often celebrated for their low costs. The deadline for large investment managers to disclose portfolios to the Securities and Exchange Commission recently passed, and investors have pored over their buys and sells. One instructive part of how the big money invests gets ignored, though. A lot of hedge funds, and institutions in general, own some of the most expensive ETFs.
Hedge funds likely have their own reasons for holding certain ETFs when similar ones are cheaper. They need to know they can trade big stakes and still get good prices, so they want ETFs with lots of trading………………………………………..Full Article: Source

Commodities Volatility Shakes Up Hedge Funds

Posted on 22 August 2014 by VRS  |  Email |Print

Jumpy commodities markets are taking hedge funds for a wild ride. A spate of unpredictable U.S. weather, a surprise record harvest and even a pig virus are giving commodities traders exactly what they craved: volatility. But a few big names are on the wrong side of this summer’s topsy-turvy moves.
Unlike in years past, when star managers scored megapaydays in high-profile markets such as oil and gold, some of the biggest winners in recent months are in commodities like corn, soybeans, natural gas and electricity………………………………………..Full Article: Source

Hedge Funds Extend Longest Soy Bear Run Since 2006: Commodities

Posted on 18 August 2014 by VRS  |  Email |Print

Hedge funds extended the longest bearish streak for soybeans in eight years as improving crop conditions bolster prospects for a record harvest in the U.S., the world’s largest grower.
Money managers have been betting on declines for five straight weeks, the most since October 2006. The U.S. on Aug. 12 raised its outlook for domestic production that was already forecast at an all-time high. The bumper harvest will swell global inventories to the biggest ever………………………………………..Full Article: Source

Polar Star to launch two new balanced commodity hedge funds this month

Posted on 14 August 2014 by VRS  |  Email |Print

A South African commodity hedge fund shop located in Cape Town is launching two new funds following the success of its existing crops. The history of the firm started with the Polar Star Fund (ZAR), which was launched in October 2008 within BlueAlpha Investment Management. In January 2010, Murray Derksen and Casper Groenewald joined BlueAlpha as the new managers on this fund. They launched the Polar Star Fund Limited (USD) in July 2010 and were later joined by their former colleagues from Rand Merchant Bank, Johann Theron in February 2013 and Francois Maritz in May 2014.
As a consequence of asset growth and successful investment results, BlueAlpha transferred the investment management function for the Polar Star Funds to a new entity, Polar Star Management, which now works independently and focuses on commodity strategies, while BlueAlpha continues to run its own equity products, all in the same building. All investment and operational team members responsible for the Polar Star Funds continue with their functions within Polar Star Management………………………………………..Full Article: Source

Aluminum Bulls Increase Wagers as Funds’ Favorite Is Zinc

Posted on 13 August 2014 by VRS  |  Email |Print

Hedge funds and other speculators increased their bullish bets on aluminum with prices climbing to a 17-month high today amid forecasts for a shortage.
The net-long position in aluminum rose to 146,418 futures and options by Aug. 8 from 141,277 contracts a week earlier, the London Metal Exchange said in its second weekly Commitment of Traders report. Zinc has the highest share of money manager bets on higher prices at 28 percent of open interest compared with 25 percent for aluminum and 22 percent for copper………………………………..Full Article: Source

Hedge Funds Are Digging Gold Miners

Posted on 11 August 2014 by VRS  |  Email |Print

All that glitters isn’t gold—at least for the investors who are eschewing the precious metal in favor of the companies that mine it. After years spent in the shadow of gold, miners are back in favor, driven by stronger earnings and cuts to mining costs. The NYSE Arca Gold Miners Index, which tracks 39 gold-mining companies, has soared 26% so far this year, compared with a 8.9% rise in gold and a 4.5% increase in the S&P 500.
The gold-miner rally is a boon for high-profile hedge-fund managers such as George Soros and John Paulson—as well as traditionally gold-focused traders like Peter Palmedo and Eric Sprott. Their gold bets were pummeled last year, when a rise in bond yields and muted inflation dulled gold’s allure, sparking a stampede that drove the precious metal’s price down 28% and the gold-mining index down 54%……………………………………..Full Article: Source

Hedge funds close to most bearish ever on wheat

Posted on 05 August 2014 by VRS  |  Email |Print

Hedge funds cut their bets on agricultural commodities to the most downbeat in six months, led by wheat, in which they came close to their most bearish positioning ever, with notable gloom over cotton price prospects too.
Managed money, a proxy for speculators, cut by more than 37,000 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 Cut Gold Bull Wagers by Most in Eight Weeks

Posted on 04 August 2014 by VRS  |  Email |Print

Hedge funds reduced bets that gold would rally from the longest retreat in a year as U.S. economic growth exceeded analysts’ estimates.
Money managers cut their net-long position by 10 percent in the week through July 29, the most since June, U.S. government data show. Prices dropped for a third week, the longest slide since July 2013. The decline helped to erase almost $610 million from the value of exchange-traded products backed by the metal………………………………………..Full Article: Source

Currency Funds Slid in June on U.S. Economic Doubt, Parker Says

Posted on 01 August 2014 by VRS  |  Email |Print

Foreign-exchange funds lost 1 percent in June as reports cast doubt on the strength of the U.S. economic recovery, according to Parker Global Strategies LLC.
Of the 34 funds that reported results, 24 had losses, the company said in a statement today. Money managers’ performance ranged from losing as much as 7.1 percent to a return of 2.4 percent, the Stamford, Connecticut, company said in statement. The company’s index is down 4.4 percent for the past 12 months………………………………………..Full Article: Source

Reuters: Commodities assets under management rise $8 bln in June - Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

Total global commodity assets under management (AUM) rose to $325 billion in June 2014 from $317 billion in May 2014, Barclays Capital said on Wednesday. “We estimate that there was a small net inflow of around $300 million into commodity investments during June,” the bank said.
The investment bank said in a research note on the sector that investors have continued to withdraw assets from commodity investments on a quarterly basis despite a marked improvement in the health of commodities as an asset class………………………………………..Full Article: Source

Hedge funds: An industry reborn?

Posted on 31 July 2014 by VRS  |  Email |Print

As a less daunting new breed of fund-of-funds comes to the fore, Charles Stanley’s Kris Barclay examines the pros and cons of their underlying strategies. Markets ebb and flow, as do new investment ideas. Sometimes, the setting of a new trend might seem a new precedent but, all too often, it is just an old idea reinvigorated. Hedge funds are of that order.
These abstract vehicles have been around for many a year and, of course, the basic and original premise was to hedge one’s assets against the stock market falling………………………………………..Full Article: Source

Commodity Hedge Funds Continue Building Momentum In 2014

Posted on 31 July 2014 by VRS  |  Email |Print

Newedge, a global leader in multi-asset brokerage and clearing, announced the performance for its suite of hedge fund indices for the month of June. Commodity funds, as represented by the Newedge Commodity Trading Index, were the best performers in June, finishing the month up 0.63%. The Newedge Trading Index continues to build on 2014 gains, leading the Newedge Index performance year-to-date with a return of 3.55%.
The Commodity Equity sub-index extends the positive performance achieved in 2013 and is up 4.85% year-to-date with a return of 1.62% for the month of June. James Skeggs, Global Head of Advisory Group Alternative Investment Solutions at Newedge said: “The Newedge Commodity Trading Index has had its best performance since 2012 so far this year and many managers are positive about the opportunities in the near future. As a result, we have seen a pickup of investors reconsidering investing in commodities.”……………………………………….Full Article: Source

Shock as commodities hedge fund performs reasonably well

Posted on 29 July 2014 by VRS  |  Email |Print

Commodities hedge funds have not being doing well lately. Clive Capital shut its doors last year, so did Higgs Capital, Arbalet Capital and Schroders’ Opus commodities fund. Armajaro Asset Management, the coffee and chocolate specialist hedge fund, has not been without its problems – it biggest fund lost nearly 25% of assets in the first quarter – but it’s actually done surprisingly well.
In accounts posted on Companies House last week, Armajaro Asset Management LLP made a profit of $6.7m for the 12 months to September 2013 in what it describes as “difficult conditions”, compared to $7.9m in 12 months previously. At the end of the period its assets under management were $1.5bn………………………………………..Full Article: Source

Hedge funds slash Brent oil bets by 25 pct during price rout -ICE

Posted on 22 July 2014 by VRS  |  Email |Print

Hedge funds and other large speculators slashed their bets on higher Brent crude oil prices by almost 25 percent in the week to July 15, ICE said on Monday, as prices collapsed to their lowest in three months.
The IntercontinentalExchange Inc. said money managers reduced their net long futures and options positions in Brent to 151,981 from 201,568 as prices fell to a three-month low of $104.39, down from more than $115 a barrel in mid-June………………………………………..Full Article: Source

Gold gains set to reverse as hedge funds cut bets on rally

Posted on 22 July 2014 by VRS  |  Email |Print

Money managers trim net-long positions as gold price rally snaps, but investors are still adding to holdings through ETPs backed by metal. Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011.
Money managers trimmed their net-long position by 8.5 per cent in the week to July 15, US government data showed. Prices dropped 2 per cent last week, the first loss since May and helping to erase US$1.38 billion from the value of exchange-traded products (ETPs) backed by the metal………………………………………..Full Article: Source

Hedge Funds Cut Bullish Gold Wagers as Rally Snaps: Commodities

Posted on 21 July 2014 by VRS  |  Email |Print

Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011. Money managers trimmed their net-long position by 8.5 percent in the week through July 15, U.S. government data show. Prices dropped 2 percent last week, the first loss since May and helping to erase $1.38 billion from the value of exchange-traded products backed by the metal.
Gold climbed 9 percent this year, outpacing gains for commodities, equities and Treasuries, partly as tensions between Ukraine and Russia increased demand for a haven. The gains are set to reverse as the economy improves and the Federal Reserve “eventually” increases U.S. interest rates, the World Bank said in a report July 17………………………………………..Full Article: Source

ETFs to Surpass Hedge Fund Assets by 2015

Posted on 16 July 2014 by VRS  |  Email |Print

ThinkAdvisor’s big annual ETF event will cover everything from smart beta to finding winning global ETFs and everything in between. The summer is typically quiet time for Wall Street, but not in the fast-moving ETF marketplace.
Never mind that a Winklevoss Bitcoin ETF is on the verge of being launched, the adoption rate of ETFs among financial advisors is through the roof. “We predict annual growth rates of 15%-30% around the globe over the next five years and believe the ETF industry could surpass the hedge fund industry in assets under management during the next 12–18 months,” said EY in its 2014 ETF Global Survey………………………………………..Full Article: Source

Rallies in energy, metals boost commodity funds in Q2-Lipper

Posted on 11 July 2014 by VRS  |  Email |Print

Commodity funds delivered robust returns in the second quarter, consolidating their recovery since the start of the year, with rallies in energy and metals boosting the top performers in the Lipper Global Commodity group.
Leading commodity fund managers say base metals should continue to perform well in the second half of 2014, with investor sentiment towards China improving, but the upside for oil is seen as more limited. Commodities have put in a solid performance so far this year, although returns eased a little in the second quarter………………………………………..Full Article: Source

Oil Hedging Seen in Decline as Banks Exit Commodities

Posted on 11 July 2014 by VRS  |  Email |Print

Oil-price hedging by producers and consumers is declining as a result of stricter of regulation that’s caused banks to exit commodities markets, according to Threadneedle Asset Management Ltd.
Trading of futures for delivery later this decade has diminished as some banks either leave commodities altogether or curb trading, Nicolas Robin, a fund manager at Threadneedle, said at a presentation in London yesterday. Increased regulatory oversight has caused a slump in energy trading on exchanges, Platts, a company publishing prices for commodities including oil, said the day before………………………………………..Full Article: Source

Now China’s metal funds turn their attention to zinc market

Posted on 10 July 2014 by VRS  |  Email |Print

Hedge funds in China have turned their attention to the zinc market, where open interest on the Shanghai Futures Exchange, for example, has risen steeply over the past month, sources said.
On June 11, zinc open interest on SHFE rose by 38% from the previous day and on July 8, another 68,308 lots were added, taking total open interest to 412,360 lots in total. The same day, the LME three-month zinc price recorded a fresh three-year high of $2,318.50 per tonne. The raised interest in the SHFE’s zinc contract stems largely from the interest of China’s commodity funds, which are emerging as important participants in the metal markets, well-informed sources said………………………………………..Full Article: Source

Gold bulls deeply suspicious of hedging

Posted on 09 July 2014 by VRS  |  Email |Print

To hedge, or not to hedge? It’s a question the gold industry has grappled with for decades and goes right to the heart of the question about why investors buy gold shares – to gain exposure to a rising gold price or invest in the exploration and development skills of miners.
Julian Baring, the UK fund manager dubbed the “Gold Guru”, once reportedly said he did not like hedging because behind every hedge there was invariably a ditch and these are usually wet and miserable places……………………………………Full Article: Source

Hard-Hit Macro Hedge Funds Stage Nascent Turnaround

Posted on 08 July 2014 by VRS  |  Email |Print

Global macro hedge funds are showing signs of life after weathering a difficult period. These funds, which bet on movements in instruments as diverse as bonds, equities, currencies and commodities, are famous for large returns and big directional trades by the likes of billionaire George Soros. In recent years, the funds’ returns have been hurt by the difficulty of predicting the moves of politicians and lawmakers.
The early signs this year weren’t especially encouraging. Bets that the dollar would continue its rise against the yen and that U.S. Treasury yields would move higher—both trades that worked last year—proved wrong……………………………………..Full Article: Source

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