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Hedge funds hike bullish bets on ags - even as oil retreats

Posted on 16 December 2014 by VRS  |  Email |Print

Hedge funds returned to a net long position in Chicago wheat for the first time in six months as they made a sharp rise in bullish positioning on ags – an increase potentially spurred by the weakness in other commodities.
Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to sugar, by more than 55,000 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………Full Article: Source

Hedge Funds’ Bullish Gold Bets Defy Goldman Outlook: Commodities

Posted on 15 December 2014 by VRS  |  Email |Print

Hedge funds are the most bullish on gold since August, defying Goldman Sachs Group Inc.’s prediction that the rally in prices will fade. The net-long position in New York futures and options climbed for a fourth week, the longest stretch of increases since July, government data show.
Futures jumped 2.7 percent last week, the most since June, as a plunge in global equities erased about $2 trillion from the value of stocks. Holdings in exchange-traded funds backed by gold rose for the first time since October as investors sought protection from the rout………………………………………..Full Article: Source

Risk Is Back for Hedge Funds Chasing Glut of Mergers: Real M&A

Posted on 15 December 2014 by VRS  |  Email |Print

Merger-arbitrage traders didn’t have enough risk last year. This year, they got more than their share — and it’s not going away. Companies announced $2.8 trillion of acquisitions, making 2014 the busiest year since before the financial crisis. Unprecedented amounts of money were spent in some industries, such as pharmaceuticals, and the transactions skewed larger than at any other time this century, according to data compiled by Bloomberg.
The slew of deals gave merger-arbitrage traders plenty to wager on, after last year’s scarcity of profit opportunities………………………………………..Full Article: Source

3 Commodity Funds for Wise Men

Posted on 11 December 2014 by VRS  |  Email |Print

Being a commodities investor is a volatile game; in recent years the ride has been as bumpy as those three magi’s camelback trek doubtless was. In the decade to 2007 commodities benefitted from a fantastic bull run, fuelled by emerging market demand. Private investors clambered to get a piece of the action, buying up commodity ETFs and natural resources funds from the likes of JP Morgan and BlackRock.
But the tables turned when the global recession forced construction to halt across the emerging world. The S&P Goldman Sachs Commodities Index fell 70% in 2008, bottoming out in February 2009 and moving sideways until June this year, when significant falls in the oil price sent the entire index plummeting………………………………………..Full Article: Source

CTA funds profitable but Gas industry dips, says Lyxor

Posted on 10 December 2014 by VRS  |  Email |Print

Despite the effects of falling oil prices, commodity trading advisor (CTA) funds are still profitable, according to Lyxor Asset Management. Oil process have fallen almost 40 percent since mid-June this year, however this led to gains on the commodity complex and CTAs saw a 1.5 percent rise due to short commodities.
Lyxor says this proves CTAs to be a diversified source of gains, with most funds posting profit on equities, rates and FX. It also suggests that strategy could remain resilient if oil prices pick up. Global macro strategies were up 0.3 percent, with equities as the main driver and European markets contributing the most. Commodities posted mixed returns, with specialist generating alpha due to short positioning on all clusters, particularly energies………………………………………..Full Article: Source

Hedge funds ‘pantsed’ in bearish shift on ag bets

Posted on 09 December 2014 by VRS  |  Email |Print

Hedge funds made the most bearish shift on their bets on agricultural commodities in four months, including a large negative shift in soybean positioning which left speculators “pantsed” by the price recovery late last week.
Managed money, a proxy for speculators, slashed by more than 58,000 contracts its net long position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Hedge Funds Betting That OPEC-Led Oil Rout Is Near End

Posted on 08 December 2014 by VRS  |  Email |Print

Hedge funds are betting that the oil-price crash is close to ending. Speculators boosted their net-long position in West Texas Intermediate crude by 14 percent in the week ended Dec. 2, the most in 20 months, U.S. Commodity Futures Trading Commission data show. Short bets contracted by 15 percent as long wagers expanded 4 percent.
Oil’s collapse accelerated after the 12-nation Organization of Petroleum Exporting Countries decided Nov. 27 to maintain output levels, underscoring the price war in crude. Oil tumbled into a bear market in October and reached a five-year low last week as the U.S. shale boom added to a global glut at a time of weakening demand growth………………………………………..Full Article: Source

Managed futures funds ride high on back of tumbling oil price

Posted on 05 December 2014 by VRS  |  Email |Print

The tumbling price of oil may have hurt investors who owned commodities, roubles or oil companies, but has been a boon for hedge funds that use computer programs to follow market trends.
These funds, known as managed futures funds or commodity trading advisers, had their best month in more than 12 years in November, with several famous names recording double-digit percentage returns. The outperformance comes as some relief for the sector after several years of weak returns that had left some funds battling customer redemptions………………………………………..Full Article: Source

While Commodity Hedge Funds Falter, Algo Funds Trading Commodities Outperform

Posted on 05 December 2014 by VRS  |  Email |Print

Fundamental commodity player Armajaro Commodities has been hard hit by oil and trades in less liquid markets, including Cocoa and Coffee, are interesting and appear to be contributing to negative performance. The positions that Armajaro has taken appear to be, in some cases, a mirror opposite of the algorithmic hedge funds trading commodities.
Armajaro’s oil loss come at a time when those trading a momentum strategy in the commodity markets have been feasting on the oil trade. Covenant Capital Management, for instance, will be releasing its November numbers in days and based on a preview of the results given to ValueWalk, Oil was a major factor in the fund’s success………………………………………..Full Article: Source

Commodity Hedge Funds Struggling To Survive Amid Oil Volatility

Posted on 04 December 2014 by VRS  |  Email |Print

Commodity hedge funds have had a tough time throughout the year and it seems like things are just going to get worse. Several hedge funds have announced that they are closing after consistent underperformance. The most recent casualty is the Brevan Howard Commodities Fund.
BH announced that it will be shutting down the $630 million fund after it lost 4.2% through the end of October. BH Commodities was run by Stephane Nicolas, and joins Brevan Howard’s growing list of funds which have gone under in the last few years. The most recently closed funds include Brevan Howard Emerging Markets Fund and Brevan Howard Investment Fund II Macro FX fund………………………………………..Full Article: Source

Oil’s swoon on OPEC is rare boon for a few hedge funds

Posted on 04 December 2014 by VRS  |  Email |Print

OPEC’s decision not to cut oil output despite a market glut gave a late-month boost to several energy hedge funds in November, pushing them toward double-digit gains in a year marked by commodity fund closures.
Greenwich, Connecticut-based Taylor Woods Capital Management, one of the larger U.S. energy hedge funds with nearly $1 billion under management, gained more than 5 percent last month and is up over 10 percent on the year, according to sources familiar with the firm’s returns………………………………………..Full Article: Source

3 Precious Metals Funds To Consider

Posted on 02 December 2014 by VRS  |  Email |Print

Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past.
Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments in this sector………………………………………..Full Article: Source

Shuttered Brevan Commodities Fund Caught Out on Derivatives

Posted on 02 December 2014 by VRS  |  Email |Print

Brevan Howard Asset Management LLP’s commodities hedge fund, which is being shut, suffered heavy losses on derivatives contracts despite correctly betting that the oil price would fall. The $630 million Commodities Strategies fund, which was launched in 2010 and managed by Stephane Nicolas, suffered its worst-ever hit in September when it slumped 11.2%.
Even before September the fund had suffered, but it was closed after a particularly difficult period for commodities investors. Oil prices slumped to a five-year low on the back of geopolitical concerns, including Western sanctions against Russia and slowing growth in China………………………………………..Full Article: Source

Huaneng sets up China’s first carbon fund

Posted on 27 November 2014 by VRS  |  Email |Print

State-owned power generator Huaneng on Wednesday set up China’s first carbon fund, which will focus on trading carbon permits in the emissions trading scheme in Hubei province.
The establishment of the 30 million yuan ($4.9 million) fund marks another step towards maturity for China’s fledgling pilot carbon markets, which will convert to a national scheme in 2016…………………………………..Full Article: Source

Hedge funds catching up to gold, silver price rally

Posted on 25 November 2014 by VRS  |  Email |Print

On Monday gold futures again flirted with the psychologically important $1,200 an ounce level, consolidating at three-week highs. In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery – the most active contract – was changing hands for $1,198.80 an ounce after bouncing off resistance at $1,208.
March 2015 silver contracts gained slightly to trade at $16.50 an ounce on Monday, up just over a dollar since hitting 55-month lows November 6. Gold is now up 6% since touching a four-year low little over two weeks ago and it appears large investors are now beginning to catch up to the rally………………………………….Full Article: Source

The Fund that Reshaped the Gold Market

Posted on 19 November 2014 by VRS  |  Email |Print

The first U.S. exchange-traded fund to give investors a stake in gold was the fastest-growing financial product of its kind when it launched 10 years ago. Today, SPDR Gold Trust , better known by its ticker symbol GLD, is the fastest-shrinking.
The fund’s trajectory mirrors the metal’s appeal as an investment. GLD’s holdings swelled in the wake of the financial crisis, reflecting the wave of investors seeking a haven who drove gold prices to record highs in 2011……………………………………Full Article: Source

Hedge Funds cut gold bets in fastest exit this year

Posted on 19 November 2014 by VRS  |  Email |Print

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

Index Funds And ETFs: 5 Ways To Shop Smart

Posted on 18 November 2014 by VRS  |  Email |Print

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

Hedge funds cut gold bets as demand eases

Posted on 18 November 2014 by VRS  |  Email |Print

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

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

Posted on 17 November 2014 by VRS  |  Email |Print

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

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

Posted on 11 November 2014 by VRS  |  Email |Print

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

Global Commodity Funds - SELL

Posted on 10 November 2014 by VRS  |  Email |Print

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

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Gold funds down by 80pc: should you invest?

Posted on 06 November 2014 by VRS  |  Email |Print

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

Some Hedge Funds Profit From Steep Decline in Oil Prices

Posted on 05 November 2014 by VRS  |  Email |Print

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

Hedge Fund, Investor Groups Hammer Swaps ‘Stays’

Posted on 05 November 2014 by VRS  |  Email |Print

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

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

Posted on 04 November 2014 by VRS  |  Email |Print

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

Hedge Funds Cut Bullish Oil Bets on Rising Global Output

Posted on 03 November 2014 by VRS  |  Email |Print

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

Hedge funds pick wrong in oil bet

Posted on 28 October 2014 by VRS  |  Email |Print

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

Hedge Funds Cut Coffee Bull Bets aas Brazil Drought Eases

Posted on 27 October 2014 by VRS  |  Email |Print

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

Investors Pile Into Oil Funds at Fastest Pace in 2 Years

Posted on 22 October 2014 by VRS  |  Email |Print

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

Hedge Funds Cut Bullish Bets on Crude as Prices Tumble

Posted on 20 October 2014 by VRS  |  Email |Print

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

Hall Commodities Hedge Fund Shutting After Poor Performance

Posted on 16 October 2014 by VRS  |  Email |Print

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

Have hedge funds ended wave of selling in ags?

Posted on 14 October 2014 by VRS  |  Email |Print

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

Hedge Funds Miss Out on Gold Gains as Bull Holdings Drop

Posted on 13 October 2014 by VRS  |  Email |Print

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

Return of volatility brings currency funds a welcome windfall

Posted on 10 October 2014 by VRS  |  Email |Print

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

Commodities Funds Soar As Retirement Asset Niche

Posted on 24 September 2014 by VRS  |  Email |Print

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

Funds Turn Bearish Silver, CFTC Data Shows

Posted on 23 September 2014 by VRS  |  Email |Print

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

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

Posted on 22 September 2014 by VRS  |  Email |Print

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

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

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