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Commodity funds in fee ‘bonanza’ as assets soar 46%

Posted on 23 September 2016 by VRS  |  Email |Print

Commodity funds and ETFs have seen assets soar 46 per cent since the end of last year creating a bonanza for providers due to the high fees they charge on the niche products, Cerulli Associates analysis reveals.
Inflows are reaching the ‘highest level in years’ hitting €5bn year to date following €1.5bn inflows in July, Cerulli says. Inflows are attributed to gold prices rising 19 per cent over the period, as well as unsettled markets………………………………………Full Article: Source

Can ETFs Outperform Hedge Funds?

Posted on 16 September 2016 by VRS  |  Email |Print

What can exchange-traded funds (ETFs) provide that hedge funds cannot? Some analysts suggest that ETFs of a particular type boast minimal problems with illiquidity, plus a position in the market that is not overcrowded.
And, above all, the reduced fee structure and the relative certainty of positive returns may be more attractive to investors, particularly those who are averse to the high stakes involved with putting money in hedge funds. Unlike a hedge fund, an ETF tracks a particular market index, replicating market performance………………………………………..Full Article: Source

3 Commodity Plays to Pick Up Now

Posted on 13 September 2016 by VRS  |  Email |Print

The specter of higher interest rates spooked investors Friday. The usual cohort of rate-sensitive assets (bonds, REITS, utilities, staples) suffered tremendously during the terror. Commodities were also one of the hardest hit areas, with gold and silver tumbling all day long.
Higher rates dampen the appeal of non-yielding assets like the yellow metal and its high-beta cousin. Friday’s bloodbath also ushered in the long-awaited return of volatility. As is usually the case after a long absence, the sudden drop was as surprising as it was large. Despite the broad swath of destruction wrought on charts across the land, opportunity lurks in a few select areas………………………………………..Full Article: Source

Global markets being jolted by systematic funds

Posted on 12 September 2016 by VRS  |  Email |Print

Volatility is back and it is back with a bang. After an extremely quiet August, where Rupee traded within a very tight range against US Dollar, we are seeing a good bit of two way movement in the pair.
A string of weak US economic reports had initially caused reversal in expectation for a Fed hike in September and a result USD had dropped sharply from 67.00 levels to all way down to 66.32 levels on spot. However, the party in Rupee did not last long as strong intervention from RBI and later a sharp reversal in risk assets globally, pushed USDINR back towards 66.70 levels………………………………………..Full Article: Source

Volatile gold demand tarnishes U.S. commodity fund sales

Posted on 08 September 2016 by VRS  |  Email |Print

Turning fortunes for gold pushed withdrawals from U.S.-based commodity funds to their highest levels since April, Investment Company Institute data for the latest week showed on Wednesday. Investors pulled $601 million from those mutual funds and exchange-traded funds during the week through Aug. 31, the trade group said, though many gold funds have seen a rebound in recent days.
The fickle buying and selling of funds, such as SPDR Gold Shares, comes after some U.S. monetary policymakers suggested they favored raising interest rates sooner rather than later, though weak economic data have damped their case………………………………………..Full Article: Source

Hedge Funds Are Uprooting Agriculture Futures Contracts

Posted on 07 September 2016 by VRS  |  Email |Print

Eight times in the nine weeks leading up to August 15, 2016, hedge fund managers reduced their positions in agricultural futures, with cotton, wheat and corn particular sell-off targets.
For guidance, hedge funds may be looking to Managed Money, a benchmark for commodity speculators, which recently slashed its net long position in the “top 13 U.S.-traded agricultural commodities, from cotton to cattle, by 8,255 contracts in the week to last Tuesday,” according to Agrimoney.com, siting data from the Commodity Futures Trading Commission………………………………………..Full Article: Source

Why Hedge Funds are Mass-Selling Agricultural Futures

Posted on 07 September 2016 by VRS  |  Email |Print

Agrimoney.com has reported that net long positions on key agricultural futures across the hedge fund industry have declined significantly in the past two to three months, down from roughly 600,000 contracts to 367,000 contracts in play.
Hedge funds across the country have repeatedly sold off stakes in corn, wheat, and cotton in particular during this time period. A number of factors may be contributing to this sudden shift in approach, including an important move from a leading commodity speculator, questions about the Federal Reserve’s possible interest rate change in the months to come, and environmental and seasonal factors in the agricultural industry that have affected supply and demand………………………………………..Full Article: Source

Hedge funds slash bullish gold price bets again

Posted on 06 September 2016 by VRS  |  Email |Print

Large scale gold futures and options speculators or “managed money” investors such as hedge funds were wrong-footed by the negative employment and wage numbers and had been positioning themselves for further declines in the gold price ahead of the Dept of Labor data.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data………………………………………..Full Article: Source

Gold Fund Holdings Rebound From Biggest Two-Day Drop This Year

Posted on 06 September 2016 by VRS  |  Email |Print

Gold steadied as holdings in bullion-backed funds rebounded from the largest two-day drop this year. Investors bought 0.6 metric ton of the metal through exchange-traded funds as of Friday, when prices rose as weaker-than-expected U.S. jobs data cut expectations that the Federal Reserve will raise interest rates this month.
They sold 16.1 tons in the two days before that, the most since December. Gold had surged as much as 30 percent this year as the Fed refrained from further tightening and the U.K.’s Brexit vote boosted demand for a haven………………………………………..Full Article: Source

Fund Review: Energy

Posted on 06 September 2016 by VRS  |  Email |Print

Energy funds have been struggling to deliver returns against a turbulent backdrop. Oil prices were on a downward trend by the end of 2015 and have been fluctuating this year before settling below $50 a barrel.
The turbulence dates back to November 2014, notes Robert Crayfourd, portfolio manager of the New City Energy investment trust, “when Opec decided it would no longer act as the market stabiliser”. In Indosuez Wealth Management’s analysis and asset allocation paper for the third quarter of 2016, it points out the slide in the price of West Texas Intermediate (WTI) oil reached a low of $26.2 a barrel on February 11, resulting in a sharp drop in US production………………………………………..Full Article: Source

Hedge funds bail on copper as Goldman sees ‘supply storm’

Posted on 30 August 2016 by VRS  |  Email |Print

Copper is stuck in a rut. While other metals have shined in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world’s biggest user, is slowing just as Goldman Sachs Group predicts a “supply storm” will hit the market and drag prices even lower.
Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a ten-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank said in a report August 24. ……………………………………….Full Article: Source

Hedge Funds Bail on Copper as Goldman Predicts ‘Supply Storm’

Posted on 29 August 2016 by VRS  |  Email |Print

Copper is stuck in a rut. While other metals have shined in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world’s biggest user, is slowing just as Goldman Sachs Group Inc. predicts a “supply storm” will hit the market and drag prices even lower.
Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a 10-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank AG said in a report Aug. 24. The hoard underscores why money managers are betting on more price declines………………………………………..Full Article: Source

Hedge Funds Are Shrinking, Not Dying

Posted on 26 August 2016 by VRS  |  Email |Print

Ouch! Actually, that didn’t hurt so much. News that hedge funds suffered redemptions of $25.2 billion last month may translate into some individual shops closing, but for the industry as a whole, it’s a drop in the ocean.
The bad news is that this latest bloodletting won’t be a cure. Managers have a clouded future to contemplate.For hedge funds worldwide, July was the worst month for redemptions since February 2009, according to an eVestment report………………………………………..Full Article: Source

Precious metal funds dominate after gold price surge

Posted on 25 August 2016 by VRS  |  Email |Print

A gold price surge has pushed precious metal funds to the top of this year’s performance charts, reports the Financial Times. Having fallen by 40 per cent from a 2011 peak of $1,920 an ounce in the closing months of 2015, gold has risen by 25 per cent so far this year to above $1,330 an ounce, defying predictions it would tumble to below $1,000.
For brief periods this summer, it even spent time above $1,360 an ounce. Other precious metals have also performed well. Funds that in one way or another seek exposure to these hard commodities now make up “all 10 best-performing mutual funds in both the US and Europe”………………………………………..Full Article: Source

Commodities on upswing in FY17 as funds return

Posted on 23 August 2016 by VRS  |  Email |Print

International commodities markets are on a boil since beginning of the current financial year and most commodities are up be that metals, crude oil or agri commodities. While so far US has refrained from raising rate after last December hike which has attracted global financial investors to commodities again, the decision will continue to be a biggest headwind for commodity rally to continue.
Bloomberg all commodity index is up 9.4 per cent from April while LME metal index (up 6.3 per cent) and Bloomberg agri index (4.6 per cent) has followed………………………………………..Full Article: Source

Hedge funds turn record bullish on soft commodities

Posted on 16 August 2016 by VRS  |  Email |Print

Hedge funds boosted bullish bets on soft commodities to record levels, holding massive long positions in New York-traded sugar and cotton, according to data from the Commodity Futures Trading Commission (CFTC) regulator.
Managed money, a proxy for speculators, lifted its net long position on the main New York traded soft commodities, arabica coffee, cocoa, raw sugar, and cotton, to the tune of 28,684 lots, in the week to last Tuesday. This brings the net long across softs – the extent to which long positions, which benefit when prices rise, outnumber short bets, which profit when values fall – to 401,379 lots………………………………………..Full Article: Source

Hedge Funds Make Record Bearish Pound Bets on Brexit Pessimism

Posted on 15 August 2016 by VRS  |  Email |Print

Hedge funds have made their biggest bearish bet on the pound before U.K. data due this week that will show the early effects of the nation’s decision to leave the European Union. Sterling reached a one-month low Monday ahead of reports on inflation, retail sales and unemployment benefit claims for July, which will provide more detail on how the economy is faring after the June 23 referendum.
The pound had its worst day on record when the vote for Brexit became clear, while losses deepened this month following the Bank of England’s decision to cut interest rates and boost its stimulus plan………………………………………..Full Article: Source

Hedge funds double down on bets against oil

Posted on 11 August 2016 by VRS  |  Email |Print

Oil bears are betting the recent rally is over. Hedge funds nearly doubled their bets against West Texas Intermediate crude oil over the last month as prices pulled back from their June highs in the low $50s, according to Bloomberg data.
Short interest — betting that the price will fall further — in “black gold” is even greater than it was in January, when the price of oil plunged to the low-$30s. Bearish oil bets likely reflect traders’ belief that the supply glut will continue weighing on the market, despite chatter from some oil-rich nations about setting new limits on production to pump up prices………………………………………..Full Article: Source

The best and worst performing funds in the month after Brexit

Posted on 05 August 2016 by VRS  |  Email |Print

Many investors were quick to take advantage following the EU referendum result, but there were wide disparities in performance between different sectors and funds in the month that followed. Here, Telegraph Money looks at the best and worst performers over the course of July, using analysis from Wealth Club, an investment service.
According to the research, technology and telecoms was the best performing sector, returning 9.5pc over the course of the month, largely thanks to the £24.3bn takeover of Arm Holdings, the chip designer, by a Japanese company at a premium of almost 50pc to its pre-bid share price………………………………………..Full Article: Source

Commodity funds generate poor returns as oil prices plummet

Posted on 04 August 2016 by VRS  |  Email |Print

As oil prices plunged by more than a fifth in less than two months, returns on natural resources funds have turned negative, wiping out profits they made earlier this year. Some 50 fund products incorporated in South Korea, investing in commodities and stocks of natural resource-related companies, saw their average rate of returns sinking to minus 2.11 percent in the past one month, according to local financial data provider FnGuide.
The commodity funds showed positive performance over the first six months of this year, with average returns of 19.95 percent after posting record-low results in 2015 due to free fall in oil prices. But they have dived back down to retract all the gains………………………………………..Full Article: Source

Fund Review: Gold

Posted on 02 August 2016 by VRS  |  Email |Print

Gold is often seen by many investors as a safe haven, and with the UK’s recent vote to leave the EU adding to economic uncertainty, it is little wonder the asset class’s popularity has surged.
Year to date, gold’s price has moved steadily higher, with figures from BullionVault.com showing the gold price at a low of $1,054 (£796) per ounce as of December 1 2015, jumping to roughly $1,366 per ounce as of July 8 2016………………………………………..Full Article: Source

Hedge Funds Raise Bearish Pound Bets to Record Before BOE

Posted on 02 August 2016 by VRS  |  Email |Print

Hedge funds and other large speculators have boosted their bearish bets against the pound to the most since records began in 1992, according to U.S. Commodity Futures Trading Commission data. A U.K. report Monday suggested they may be right.
Manufacturing shrank more in July than initially forecast, adding to speculation that the Bank of England will cut interest rates on Aug. 4 amid signs that Britain’s decision in June to leave the European Union is hitting the U.K. harder than previously envisaged………………………………………..Full Article: Source

Investors eye commodities funds

Posted on 01 August 2016 by VRS  |  Email |Print

Commodities funds ended June in positive territory up +2.72 percent, according to performance data from eVestment - a rebound for the funds which has persisted throughout 2016. Asset flows have been consistent over the past 9 months as well, suggesting that investors are once again interested in commodities funds even after the wild price swings in commodity prices over the past few years. For investors looking to cash in, being defensively positioned will be key, says Jason Lejonvarn, Managing Director, Mellon Capital Management.
“The main issue with the commodities benchmark is that it forces you to be long all commodities. But some commodities have big drawdowns so we want the opportunity to be able to go long and short,” Lejonvarn tells Opalesque in an interview. Mellon Capital offers a long/short commodities strategy that he says the firm is offering as a way of helping investors avoid some of the historical pitfalls common to commodity funds………………………………………..Full Article: Source

Hedge funds suffer $20.7bn net outflows in June

Posted on 27 July 2016 by VRS  |  Email |Print

Industry endures its longest sequence of quarterly withdrawals since 2009. Global hedge funds suffered net outflows of $20.7bn in June, as investors pulled more of their money out despite improved performance from most managers.
After inflows in April and May, the withdrawals took total aggregate net redemptions for the second quarter to $10.7bn, according to data from eVestment, marking the third consecutive quarter in which money has left the sector………………………………………..Full Article: Source

Here’s Why Some Huge Hedge Funds Think Oil Prices Could Plunge Again

Posted on 26 July 2016 by VRS  |  Email |Print

Hedge funds have been liquidating their former record bullish position in crude futures and options putting downward pressure on oil prices in recent weeks. But now the liquidation of old long positions is being replaced by the establishment of new short positions as fund managers try to capitalize on the downward cycle in prices.
Hedge funds and other money managers cut their net long position in Brent and WTI futures and options by 31 million barrels to 453 million in the week ending on July 19………………………………………..Full Article: Source

Hedge funds sell ags again - but wheat shorts ‘in trouble’

Posted on 26 July 2016 by VRS  |  Email |Print

Hedge funds extended their cut in bullish positioning on agricultural commodities to the longest of 2016, although ideas grew on wheat at least that the extent of short bets may not be sustainable, boding well for prices.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by 56,935 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Fund return hit by commodities, strong dollar

Posted on 25 July 2016 by VRS  |  Email |Print

China Investment Corporation announced on Friday that its overseas investments generated a net return of negative 2.96 percent in dollar terms in 2015, falling from a positive 5.47 percent return for 2014, due to volatilities in international financial markets and foreign exchange losses triggered by an appreciating dollar.
A father and his daughter take part in the riddle-guessing contest at a KFC outlet in Zhengzhou, capital of Henan province, during this year’s Lantern Festival. The $814 billion Chinese sovereign wealth fund posted a net cumulative annualized return of 4.58 percent since its establishment in September 2007, compared with 5.66 percent in 2014………………………………………..Full Article: Source

Windermere’s mining hedge fund geared for bull cycle, up 122% YTD

Posted on 25 July 2016 by VRS  |  Email |Print

Benedicte Gravrand, Opalesque London: Precious metals such gold, silver, platinum and palladium, have not exactly shined in the past few years, but have started to experience recoveries so far this year. And the few funds out there investing in precious metals related equities are reaping the profits.
Windermere Capital’s mining fund returned 93% in the second quarter of this year, and is up 122% YTD. Blackrock’s World Mining Fund A2 is recovering with a YTD return of 55%. Sprott Asset Management’s Gold & Precious Minerals Fund is up 97% YTD and its Hedge Fund L.P. II up 84%.Full Article: Source

Fund Review: Agriculture

Posted on 19 July 2016 by VRS  |  Email |Print

Commodity markets have seen something of a rebound in recent months and agriculture is no exception. The soft commodity space is varied, ranging from cocoa to coffee to sugar, and while the focus has been on oil, gold and industrial metals and the effect on these of issues such as China’s slowing growth, agricultural commodities appear to have been somewhat under the radar.
In the past 12 months the broad S&P GSCI Commodity index has struggled, falling 6.4 per cent in the year to July 6 2016, yet on a sub-sector basis there are soft commodities that have delivered strong returns………………………………………..Full Article: Source

Hedge funds’ sell-off in grains raises hopes for corn, wheat rallies

Posted on 19 July 2016 by VRS  |  Email |Print

The extent of hedge funds’ selldown in grains, while continuing to raise bullish bets on soft commodities, raised ideas that the worst could be over for liquidation in corn and wheat– if not for soybean derivatives.
Managed money, a proxy for speculators, slashed its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to cocoa, by 114,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Hedge funds accelerate ag selldown - boding well for wheat prices?

Posted on 12 July 2016 by VRS  |  Email |Print

Hedge funds accelerated their rate of selling in grains, fuelled by a hike in bearish bets on Chicago wheat to near-record levels – provoking ideas that a rout which has taken prices to 10-year lows may be spent.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by more than 130,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Oil Funds Hold Down Risk, Eye Volatility After Weak First Half

Posted on 11 July 2016 by VRS  |  Email |Print

Oil—and the hedge funds invested in it—are still uncertain. Oil’s big rebound in the first half of the year was a squandered opportunity for most hedge funds with positions in crude, and a surge in volatility is likely to make it harder for them to call the market in the second half.
The majority of hedge funds in the oil universe posted sparse returns in the six months to June even as crude rebounded from 12-year lows to post a 30% gain………………………………………..Full Article: Source

Commodities Rally Is Fizzling Out as Merchant Fund Sees Oil Drop

Posted on 08 July 2016 by VRS  |  Email |Print

The best is probably over for commodities this year as the Brexit vote adds risks to global growth and oil is set to retreat, according to the Merchant Commodity Fund, which returned 9 percent in the first half.
The fund, run by ex-Cargill Inc. employees Doug King and Michael Coleman, has changed its commodities outlook to neutral from bullish earlier this year. The U.K. vote to exit the European Union has led to uncertainty and growth remains lackluster in top user China, King said. Oil may drop to $40 to $45 a barrel within three weeks as stockpiles fall more slowly than expected, he said………………………………………..Full Article: Source

Barclays launches £100m fund to boost UK agriculture

Posted on 08 July 2016 by VRS  |  Email |Print

Barclays is inviting Cambridge and East of England companies to pitch into a new £100 million UK agricultural funding initiative. The bank is making that amount available in loans to boost the sector, to help future-proof the industry for the next generation, improve efficiency and create additional revenue streams to limit effects of market volatility.
The fund is available to farmers looking to modernise their infrastructure, helping to streamline their farming processes and increase efficiency………………………………………..Full Article: Source

Hedge Funds Push Gold Bullish Bets To Record Level

Posted on 29 June 2016 by VRS  |  Email |Print

Hedge funds and money managers were buying gold as prices were dropping, ahead of the British referendum on the future of its EU membership, according to the latest trade data from the Commodity Futures Trading Commission. Friday’s report showed that gold’s speculative net length reached historic highs last week.
The disaggregated Commitments of Trader report (COT), for the week ending June 21, showed money managers increased their speculative gross long positions in Comex gold futures by 17,436,contracts to 274,936. At the same time, short bets fell by 3,732 contracts to 24,528. The latest data shows the gold market is net long by 250,408 contracts………………………………………..Full Article: Source

Investors Keep Piling Into Gold Funds

Posted on 28 June 2016 by VRS  |  Email |Print

As the price of gold has soared, funds that track the precious metal are also reaching new heights. The two largest gold funds, SPDR Gold Trust and iShares Gold Trust, now own more physical gold combined than all but seven nations, according to analysis from Convergex.
With about 1,037 metric tons altogether, the amount of gold in the two funds outpaces reserves of notable holders such as the European Central Bank and Saudi Arabia. Following Britain’s vote to exit the European Union, the third largest U.S. gold ETF, ETFS Physical Swiss Gold Shares, announced on Monday that its assets have surpassed $1 billion………………………………………..Full Article: Source

Investors pouring billions into passively managed funds

Posted on 28 June 2016 by VRS  |  Email |Print

Cheap, flexible and tax-efficient. The three big advantages of passively managed exchange-traded funds continue to drive the migration of investment assets from actively managed mutual funds to ETFs.
Many industry observers expected that increased market volatility would push investors back to active managers, but the latest asset-flow stats from research firm Morningstar suggest not. In May, $18.7 billion flowed out of actively managed U.S. equity funds and $8.1 billion flowed into passively managed ones that track an index — largely ETFs………………………………………..Full Article: Source

Hedge funds cooler on grains - but in softs, bullish bets at 8-year top

Posted on 28 June 2016 by VRS  |  Email |Print

Hedge funds’ love affair with grains has began to cool, even as they raised bullish soft commodity betting to a six-year high, leaving them vulnerable to the market turbulence which has followed the UK vote to quit the EU.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to hogs, by more than 60,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Hedge Funds Win World-Beating Rally With Record Gold Holdings

Posted on 27 June 2016 by VRS  |  Email |Print

Unlike most of the world, gold investors got it right when it came time to betting on the Brexit vote. They were rewarded with a world-beating rally. Hedge funds boosted their bets on price gains for bullion to an all-time high just two days before U.K. voters took to the polls and decided to leave the European Union, sending global markets roiling.
Gold futures climbed to a two-year high after the referendum. The metal’s wild ride isn’t over yet. Prices could jump another 7.7 percent by the end of the year, a Bloomberg survey showed………………………………………..Full Article: Source

Oil prices under pressure as hedge funds adjust positions: Kemp

Posted on 21 June 2016 by VRS  |  Email |Print

Hedge funds cut their net long position in the main crude futures and options contracts by 63 million barrels, 10 percent, in the week to June 14, as the rally in oil prices showed signs of running out of steam.
The one-week reduction in the net long position was the largest since July 2014, according to an analysis of data published by the U.S. Commodity Futures Trading Commission and the Intercontinental Exchange. Hedge funds and other money managers cut their combined net long position in the three main Brent and WTI futures and options contracts from a near-record 633 million barrels to 570 million………………………………………..Full Article: Source

Hedge funds lift bullish ag bets to 2-year top - raising scope for selling

Posted on 21 June 2016 by VRS  |  Email |Print

Hedge funds hiked their net long in agricultural commodities to the highest in more than two years, led by the most bullish positioning in softs since 2008 – but providing ammunition for the selling which set in on Monday.
Managed money, a proxy for speculators, raised by more than 107,000 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 Turn Most Bullish on Russian Ruble Since 2013

Posted on 21 June 2016 by VRS  |  Email |Print

Hedge funds boosted bullish bets on the ruble before the Federal Reserve meeting last week and after Russia’s central bank resumed monetary easing, data from the U.S. Commodity Futures Trading Commission show.
Speculators increased their long positions to 14,538 futures in the week ended June 14 from 8,086 contracts a week earlier. While they also doubled bets against the ruble, their net position representing the difference between the longs and the shorts reached the highest since February 2013………………………………………..Full Article: Source

Gold price bulls kept faith as hedge funds wavered

Posted on 17 June 2016 by VRS  |  Email |Print

A big factor supporting the gold rally – the best start to the year in more than a decade – have been investors in physical gold-backed exchange traded funds. Global vault holdings have swelled to 1,883 tonnes, the highest since December 2013 following net inflows of more than 400 tonnes so far this year – a dramatic reversal of the trend during the last three years when a staggering 1,198 tonnes left funds.
As the chart shows the more than 6% decline in the price of gold in May did not deter ETF investors from picking up more metal and doubling down on their conviction of a rising gold price………………………………………..Full Article: Source

Should Investors Buy Into Alternative Assets Like Hedge Funds?

Posted on 15 June 2016 by VRS  |  Email |Print

Hedge funds and the less-pricey liquid alternative funds that attempt to mimic them have generally underperformed thus far in 2016. Walter Davis, alternative investments strategist at Invesco (IVZ) , said they started off well when the market dropped to start the year, yet have foundered since stocks turned up in mid-February.
“It’s been a tough environment because there has been volatility and a lack of sustained moves in the market,” said Davis. “It’s just been chopping around.”……………………………………….Full Article: Source

Commodity Funds Outperform for First Time in Years

Posted on 14 June 2016 by VRS  |  Email |Print

Year-to-date gains in core commodity indexes are two to three times the gains in broad U.S. bond and stock indexes. For the first time in years, commodities are doing something they haven’t done in a while: They’re outperforming major asset classes like stocks, bonds and real estate.
After several years of consecutive annual losses for major commodity benchmarks, a turnaround in the beleaguered group appears to be in the works. Since the start of the year, the Thomson Reuters/CoreCommodity CRB Index (CRY) has climbed 9.5% in value compared to a gain of just 3.6% for the total U.S. stock market (VTI), 4.4% for the total U.S. bond market (BND) and 7% for global real estate equities (REET)………………………………………..Full Article: Source

Hedge funds hike bullish ag bets to 2-year high, amid ‘inflow of money’

Posted on 14 June 2016 by VRS  |  Email |Print

Hedge funds hiked their bullish bets on ags to the highest in two years amid the investor influx which drove prices to the highest in 17 months – although the upbeat positioning may spell bad news for wheat futures.
Managed money, a proxy for speculators, raised by nearly 170,000 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

Investors pile into quant funds

Posted on 13 June 2016 by VRS  |  Email |Print

Investors may be fleeing hedge funds in droves but they are still allocating money to technology-driven strategies, despite more than a year of lacklustre performance. The move suggests investors are looking to position themselves for increased market swings or a possible crash as “quants”, which use computer algorithms to predict market moves, are not correlated to other strategies.
The number of institutional investors who allocated funds to the most popular sub-strategy of quant known as commodity-trading advisers, or CTAs, hit a record of 1,067 in 2015, an addition of 50 from the previous year, according to the data provider Preqin………………………………………..Full Article: Source

Don’t leave energy funds, industry group says

Posted on 08 June 2016 by VRS  |  Email |Print

A growing move in the United States to divest from oil and gas investments is a knee-jerk reaction that could jeopardize long-term values, an energy group said. The American Petroleum Institute, which represents the interests of the U.S. oil and natural gas sector, responded to word that the District of Columbia Retirement Board opted to divest from the industry.
Even though a lower price for crude oil has cut into the budgets of U.S. energy producers, the API said the country is still a world leader in oil and gas production and moving funds out of the industry may be short-sighted………………………………………..Full Article: Source

Speculators’ bullish ag bets hit 2-year high - as algo funds move in

Posted on 07 June 2016 by VRS  |  Email |Print

Speculators lifted bullish positioning on agricultural commodities to the highest in nearly two years, as algorithmic funds flooded in, into sugar at least, – while coffee and wheat caught out investors making bearish bets.
Managed money, a proxy for speculators, raised by more than 64,000 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

Commodity hedge funds get $5b embrace on oil gain

Posted on 06 June 2016 by VRS  |  Email |Print

The rally in oil has given a fillip to long-suffering commodities hedge funds. After four years of haemorrhaging cash and clients, managers are once again making money and winning back investors. About $5 billion has coursed into the funds in 2016, with the first quarter seeing the biggest inflows since 2009, according to data compiled by eVestment.
Investors are being drawn by gains such as the more than 18 per cent increase reported in a letter to clients by Stuart Zimmer’s ZP Energy Fund in New York and the 12.7 per cent posted by oil trader Pierre Andurand’s $1.1 billion Commodities Master Fund in London. Officials at the funds declined to comment………………………………………..Full Article: Source

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