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Hedge Funds Primed for Oil Rebound With Increase in Bullish Bets

Posted on 28 September 2015 by VRS  |  Email |Print

The momentum behind wagers on rising oil prices picked up steam as U.S. drilling slows and producers face potential credit line cuts. Money managers’ long position in West Texas Intermediate crude climbed by 6.1 percent in the week ended Sept. 22, the most since January, according to data from the Commodity Futures Trading Commission. The jump in longs and a decline in shorts boosted their net-long position by 15 percent.
U.S. crude output is down 470,000 barrels a day from a four decade high of 9.61 million in June, data from the Energy Information Administration show. Explorers idled U.S. oil rigs for a fourth week, Baker Hughes Inc. said Sept. 25………………………………………..Full Article: Source

Commodity traders given breathing room

Posted on 23 September 2015 by VRS  |  Email |Print

Hedge funds and Wall Street banks face an easier time keeping large oil, grain and metal trades after persuading the US derivatives regulator to amend a controversial clampdown on commodity speculation.
The Commodity Futures Trading Commission proposed on Tuesday to change one aspect of long-debated rules on commodity position limits, or caps on speculative holdings that were mandated by the Dodd-Frank financial reform. The regulation has been contentious, even after the collapse in commodity prices………………………………………..Full Article: Source

Hedge funds no longer sure oil prices will fall further

Posted on 22 September 2015 by VRS  |  Email |Print

Hedge funds continued to pare short positions in U.S. crude oil last week even as the previous short-covering rally ran out of steam. The unusual concentration of hedge fund short positions built up between June and August has been partially unwound, reducing some of the persistent selling pressure evident in the market during the third quarter.
Speculators are not yet ready to bet heavily on a rebound in prices but the bearishness that dominated the market over the summer is dissipating. Hedge funds and other money managers reduced their gross short position in the main NYMEX U.S. crude futures and options contract by 14.5 million barrels in the week ended Sept. 15………………………………………..Full Article: Source

Oil Speculators Most Bullish in Two Months as OPEC Calls for $80

Posted on 21 September 2015 by VRS  |  Email |Print

Hedge funds slashed their bets on falling oil prices, leaving them the most bullish in two months as OPEC called for a return to $80 crude. Money managers’ net-long position in West Texas Intermediate rose by 14,821 contracts to 147,678 futures and options in the week ended Sept. 15, according to data from the Commodity Futures Trading Commission. That’s the highest level since July 7.
The Organization of Petroleum Exporting Countries expects crude prices to rise to $80 by 2020 as output falls elsewhere. U.S. production could sink by the most in 27 years in 2016 as the price rout extends a slump in drilling. Speculators closed out short positions two days before the Federal Reserve decided not to raise key U.S. interest rates………………………………………..Full Article: Source

Fund managers split over whether mining is at rock bottom

Posted on 21 September 2015 by VRS  |  Email |Print

Bar-room brawls in mining towns can be bloody affairs, but they are as nothing to the battering meted out on mining shares as commodity prices slide and China’s economy slows. The MSCI metals index is down almost 30 per cent this year. Yet some fund managers who have been underweight the sector see signs that things are almost “bad enough” — as one manager puts it — to invest again.
Mining company bosses, for their part, are adapting to the lower growth outlook as China makes the transition from a production-based to consumer-driven economy. With these companies’ cash flow under pressure, they have cut costs and capital expenditure to eke out returns………………………………………..Full Article: Source

Hedge funds soar on China slowdown

Posted on 21 September 2015 by VRS  |  Email |Print

As hedge fund managers take a beating from the slowdown in China, Ray Bakhramov is flying. The chief investment officer of Forum Asset Management said he had been betting on an emerging-market slump since 2012. His conviction led to three years of losses of 10 per cent to 20 per cent in his Global Opportunity Fund.
Bakhramov finally got his wish in the past two months, as did a handful of managers who made multi-year wagers that emerging-market stocks and currencies would begin to fall, starting with a downturn in China………………………………………..Full Article: Source

Hedge Funds Ramp Up Volatility Bets to Record Levels

Posted on 17 September 2015 by VRS  |  Email |Print

Bets on higher stock-market volatility are at a record high, signaling increasing concern about the outlook for U.S. shares. Wagers by hedge funds and other speculative investors that futures tied to the CBOE Volatility Index will rise outstripped the number of bets on a falling VIX by 37,925 contracts as of Sept. 8.
That’s the biggest net bullish position on record, according to Schaeffer’s Investment Research’s analysis of data from the U.S. Commodity Futures Trading Commission going back to 2005. A bullish bet on VIX futures signifies a belief that investors will be rushing for protection against market downdrafts. The VIX, the market’s “fear gauge,” is based on the prices of S&P 500 options, which tend to rise as stock prices decline………………………………………..Full Article: Source

Hedge funds extend selldown on ags - despite sugar buyback

Posted on 15 September 2015 by VRS  |  Email |Print

Hedge funds extended to an eighth successive week their bearish positioning in the top US-traded agricultural commodities, led by a selldown in grains, which more than offset a more upbeat stance on sugar.
Managed money, a proxy for speculators, cut by more than 27,000 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

Local Funds Key to Shielding India From China Swings

Posted on 14 September 2015 by VRS  |  Email |Print

Foreign investors’ sway over Indian stocks is set to wane as local mutual funds take a bigger slice of the $1.4 trillion market, providing a buffer against price swings sparked by events like China’s yuan devaluation last month, according to Tata Asset Management Co.
Even as the worst emerging-markets rout in four years rubbed off on India’s benchmark S&P BSE Sensex, domestic stock funds took in a net 92 billion rupees ($1.4 billion) in August, 50 percent more than July, data from the Association of Mutual Funds in India showed last week. Global investors, on the other hand, sold the most shares since October 2008………………………………………..Full Article: Source

Hedge-Fund Bets Against Emerging Currencies Get Crowded

Posted on 11 September 2015 by VRS  |  Email |Print

Hedge funds are piling into bets that the dollar will strengthen against emerging-market currencies, especially those vulnerable to falling commodity prices, according to a money manager who invests in the funds. The popularity of the trade will fuel volatility in those currencies should such funds adjust their positions, said Sam Diedrich, a director at Pacific Alternative Asset Management Co., which oversees about $9.5 billion in hedge-fund investments.
“It’s become a crowded trade,” Diedrich, who is based in Irvine, California, said in a telephone interview. “Long term, I still think the trade works, but you could see some large swings.”……………………………………….Full Article: Source

Oil Back in Favor as Commodity Funds See First Flows in 6 Months

Posted on 11 September 2015 by VRS  |  Email |Print

The beginning signs of a rebound in oil and gold were enough to lure investors back to commodity funds last month. Exchange-traded products tracking raw materials absorbed $2.3 billion in August, the first increase in six months, according to a report from Blackrock Inc. on Thursday. Oil funds took in $1.8 billion, while those for gold collected $400 million and volatility-linked alternative products picked up $600 million.
Oil and gold rose about 4 percent in August, one of the few months with gains for markets that have seen prices steadily decline for the past two years. Crude rallied in the last few days of August as comments from OPEC and signs that the U.S. shale boom is fading faster provided optimism that a global supply glut will shrink………………………………………..Full Article: Source

Hedge funds extend bearish ag spree to longest in a year

Posted on 08 September 2015 by VRS  |  Email |Print

Hedge funds took their selldown in ags to the longest this year as they turned more bearish in particular on cotton and wheat, more than offsetting the impact of a short-covering wave in sugar. 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 31,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator.
The decline in the net long - the extent to which long positions, which profit when values rise, exceed short bets, which benefit when prices fall – was the seventh weekly drop in succession, the longest negative streak on positioning in more than a year………………………………………..Full Article: Source

Krom River Closes Commodity Hedge Fund

Posted on 04 September 2015 by VRS  |  Email |Print

Commodity hedge fund Krom River, which managed around $1 billion at its peak, is returning money to investors as it plans a shift in focus following a tough period for commodities funds. The Swiss-based fund, co-founded by former Armajaro Asset Management trader Chris Brodie, currently has around $60 million in assets, according to a person familiar with the company.
The fund has lost money over the past three calendar years, and was down around 2% year-to-date to June. Mr. Brodie will be taking a sabbatical until the end of the year………………………………………..Full Article: Source

Hedge fund positioning shows why gold price rally fizzled

Posted on 01 September 2015 by VRS  |  Email |Print

On Monday, the gold price continued to drift sideways as a measure of calm returned to global equity markets and the focus shifted back to a recovering US economy. In afternoon dealings on the Comex market in New York, gold futures with December delivery dates lost $0.70 to $1,133.40 an ounce in quiet trade.
Gold is still well above a more than five-year closing low of $1,084 struck August 5 as China’s economic woes and shock currency devaluation sent ripples through markets. But the safe haven buying amid the panic on markets did not materialize to the extent many bulls had hoped………………………………………..Full Article: Source

Commodity Hedge Funds Lose Most in Three Years as Rout Deepens

Posted on 25 August 2015 by VRS  |  Email |Print

Hedge funds betting on commodities lost the most in almost three years in July as the price-rout deepened. Funds lost money for a third month, according to the Newedge Commodity Trading Index, which was released to investors Friday and tracks the performance of raw-material trading strategies including equities and physical products.
The 1.3 percent decline was the most since October 2012 and the index is down 2.4 percent this year. A slide in everything from oil to metals pushed commodity prices down the most since 2011 in July. Managers are losing money and commodity funds at Cargill Inc. to Armajaro Asset Management LLP closed this year as China’s slowing economy adds to the global glut in most raw materials. Glencore Plc shares are at a record low, and oil and copper prices dropped to the lowest in six years………………………………………..Full Article: Source

Fund managers offload commodity stocks amid fears of Chinese recession

Posted on 19 August 2015 by VRS  |  Email |Print

Miners were hit as copper priced edged back towards six-year lows, as renewed fears over China rattled fund managers. On the same day that copper prices dropped back towards six-year lows, weighing on the mining-heavy FTSE 100, a closely-watched survey of fund managers around the world showed investors have piled out of energy and commodities stocks amid renewed fears over China.
Two-thirds of the 202 investors polled by Bank of America Merrill Lynch earlier this month said a Chinese recession and an emerging markets debt crisis are the greatest risks to global markets………………………………………..Full Article: Source

China is the new Greece, say fund managers

Posted on 19 August 2015 by VRS  |  Email |Print

Fund managers are focused on avoiding the contagion from falling Chinese markets, as they turn their back on Greece worries, finds a new survey. While Greece dominated concerns in previous months, China recession is now the number one tail risk for managers, finds the Bank of American Merrill Lynch fund manager survey for August. More than half of fund managers are ranking China as the top concern.
Investors are “avoiding anything exposed to China or commodities,” says James Barty, head of European equity strategy. Following the People’s Bank of China devaluation of the yuan last week, investors began to get more jitterish, says Valentijn van Nieuwenhuijzen, head of multi-asset at NN Investment Partners, formerly ING Investment Management………………………………………..Full Article: Source

Hedge Funds Resume Flight From Oil as Prices Sink to 6-Year Lows

Posted on 17 August 2015 by VRS  |  Email |Print

After showing some short-lived optimism, hedge funds resumed their retreat from the U.S. oil market, cutting bullish positions for the seventh time in eight weeks as prices dropped to the lowest since 2009.
Money managers’ net-long position in West Texas Intermediate crude declined 11 percent in the week ended Aug. 11, U.S. Commodity Futures Trading Commission data show. Short positions climbed to the highest level since March, a signal speculators see prices continuing to fall………………………………………..Full Article: Source

Investors Lose Faith in Commodity Hedge Funds

Posted on 10 August 2015 by VRS  |  Email |Print

July has been another bad month for commodities. Not only have markets taken a battering, with gold and oil leading the fall, but some well-known hedge funds told investors they were closing their doors. Black River Asset Management, owned by agricultural trader Cargill, closed its commodities fund, along with three other funds, and Armajaro Asset Management said it would shut its $450 million commodities hedge fund after losing 11% in the first half.
Meanwhile, private equity group Carlyle parted ways with the founders of its Vermillion commodities firm after assets dwindled. It is another blow for the sector, which has faced weak returns since 2011. Investors have left in droves, seeking better returns elsewhere. HFR, a hedge fund research group, reports net outflows from the sector of $3.4 billion in 2014………………………………………..Full Article: Source

The ‘God’ of oil trading is getting crushed by the commodities slump

Posted on 07 August 2015 by VRS  |  Email |Print

A commodities hedge fund run by star trader Andy Hall is getting hammered by the collapsing oil price. Hall’s Astenbeck Capital Management fund lost about 17% in July, Reuters reports, citing an investor letter.
That is the second largest loss the fund has ever experienced. Its assets under management are now about $2.8 billion, down from $500 million in June, according to Reuters. The oil fund also posted losses in May and June, according to Reuters………………………………………..Full Article: Source

Bloodied hedge funds return to ag selling with a vengeance

Posted on 04 August 2015 by VRS  |  Email |Print

Hedge funds, having been bloodied by buying grains as the market tumbled, followed up with widespread selling in ags, turning more bearish on soft commodities and livestock as well as the likes of corn and wheat.
Managed money, a proxy for speculators, slashed its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by nearly 135,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Gold Bears Entrenched as Bullion Funds Lose Another $6 Billion

Posted on 03 August 2015 by VRS  |  Email |Print

Speculators keep punishing gold. Money managers stayed net-short on bullion for a second week, after going bearish for the first time since the U.S. government data begins in 2006. The value of exchange-traded products tracking gold slumped $6 billion last month, the most since September, data compiled by Bloomberg show.
With prices stuck near a five-year low, traders are turning their back on gold amid muted inflation and a resilient U.S. economy. Since about 40 percent of what’s mined or recycled annually gets sold as coins or bars, shriveling demand from speculators could mean a prolonged bear market. Morgan Stanley says investment buying will keep dropping through at least 2018………………………………………..Full Article: Source

State Street Starts Global Macro Hedge Fund in Alternatives Push

Posted on 31 July 2015 by VRS  |  Email |Print

State Street Corp. is starting a hedge fund that will bet on macroeconomic events, part of an effort to expand its $2.37 trillion money-management arm beyond lower-paying passive strategies.
The strategy, which will be run by Michael Ho and Lisa O’Connor, will mostly make directional bets on and against stocks, bonds, currencies and commodities globally, confirmed Anne McNally, a spokeswoman for State Street. The bank seeded the fund with $50 million, and Hartford HealthCare’s pension and endowment added $33 million………………………………………..Full Article: Source

Wells Fargo Starts Commodities Hedge Fund Amid Slump in Prices

Posted on 29 July 2015 by VRS  |  Email |Print

Wells Fargo & Co.’s wealth management division is soliciting investor money for a new commodities hedge fund just as oil hovers near a six-year low and other commodities prices slide to their worst levels since 2002.
The Apollo Natural Resources II ASP Fund has already raised about $7 million and is looking for wealthy individuals who can afford the minimum $100,000 entry investment, according to a July 16 securities filing………………………………………..Full Article: Source

Funds flow into agriculture as El Nino threatens crops

Posted on 28 July 2015 by VRS  |  Email |Print

Funds are flowing back into agricultural commodities for the first time since 2012 as investors look to capitalize on cheap prices, bullish demand and the threat of crop damage from an El Nino weather pattern. Figures from ETF Securities, one of the largest issuers of exchange traded products, show a small net inflow so far this year after an outflow of nearly 20 percent in 2014.
Across the sector, indices and ETFs saw a net inflow of $400 million in April and a further $400 million in May, according to data from Barclays. This compares to a net outflow of $2.4 billion in the last quarter of 2014………………………………………..Full Article: Source

Hedge funds are most bearish on U.S. oil since 2010: Kemp

Posted on 28 July 2015 by VRS  |  Email |Print

Hedge funds are more bearish about the outlook for U.S. oil prices than at any time for almost five years, according to data from the U.S. Commodity Futures Trading Commission. Hedge funds and other money managers had a net long position in WTI-linked futures and options equivalent to just 118 million barrels of oil on July 21, down from a recent high of 294 million barrels 11 weeks earlier.
The net position was the smallest since September 2010. Money managers interested in oil have a long bias (there has been no net short since the current time series began in 2006). So the small net long indicates an unusually high level of bearishness among hedge funds………………………………………..Full Article: Source

ETFs get the edge on hedge funds

Posted on 27 July 2015 by VRS  |  Email |Print

They’re touted as the best instruments to diversify your portfolio by those who market them, including BlackRock, the world’s largest asset manager. The marketing plan appears to be working, as investors have ploughed more funds into exchange-traded funds (ETFs) than hedge funds, according to research firm ETFGI.
There was $2.97 trillion invested in the 5,823 exchange-traded products at the end of the second quarter, an ETFGI report said. Meanwhile, the global hedge-fund industry had $2.96 trillion in assets under management………………………………………..Full Article: Source

Hedge Funds Dump Crude Oil as Iran Deal Threatens Prolonged Glut

Posted on 20 July 2015 by VRS  |  Email |Print

Speculators cut bullish bets on oil to the lowest level since March because an agreement over Iran’s nuclear program threatens to prolong a global supply glut. Money managers reduced their net-long position in West Texas Intermediate crude by 15 percent in the week ended July 14, U.S. Commodity Futures Trading Commission data show. Longs dropped 7.9 percent and short wagers rose 4.2 percent.
Iran, holder of the fourth-biggest crude reserves, may be able to increase exports as soon as December if it complies with the terms of its nuclear accord with world powers. That would add to record output from Saudi Arabia and Iraq and come at a time when the Organization of Petroleum Exporting Countries is pumping the most in almost three years………………………………………..Full Article: Source

Hedge funds post best returns in years

Posted on 17 July 2015 by VRS  |  Email |Print

Global hedge funds reached the halfway mark in 2015 with some of their best returns in years, but performance cooled off in June from growing losses in Asia Pacific and Europe, according to the latest statistics from Preqin, a research firm focused on the alternative assets industry.
“The industry has had a run of five months of positive returns from the start of 2015, and surpassed full-year 2014 performance in May,” said Amy Bensted, Preqin’s head of hedge fund products.”However, various macroeconomic events, notably the Greece/Eurozone crisis and the turbulence experienced in the China stock market, has led to hedge funds failing to generate positive returns in June and has dented the year-to-date return of the sector.”……………………………………….Full Article: Source

Reversal of Fortune for Gold & Silver Funds?

Posted on 16 July 2015 by VRS  |  Email |Print

Gold started off 2015 with a bang as it became even more of a safe haven as a result of an increase in currency volatility, uncertainly over Greece’s future in the euro zone and expected quantitative easing in Europe. However, the gains fizzled out as gold prices again dropped on strong U.S jobs.
Following which, gold prices fell to new six-week lows as equities recovered on hopes that Greece would work out a deal with its creditors. The demand for yellow metal returned at the start of the second quarter on disappointing economic data and a firming dollar. A weaker dollar and geopolitical tensions emanating from the Saudi Arabia-led coalition’s attack on Houthi rebels helped gold move up………………………………………..Full Article: Source

Hedge Funds Target Australian Dollar for Bet Against China

Posted on 14 July 2015 by VRS  |  Email |Print

Hedge funds wary of a slowdown in China are betting against the Australian dollar. The Aussie has long been viewed as the currency of choice to bet against for funds worried about China’s economy. But having traded above parity with the U.S. dollar as recently as May 2013, it has fallen sharply in recent years and has continued its decline over the past month as China’s stock market has tumbled.
That looks likely to have benefited funds who piled into bets against the currency in recent months. According to data from the U.S. Commodity Futures Trading Commission, bets taken by leveraged funds on the Australian dollar falling leaped by almost 60% between May 19 and July 7. Positioning data from the Commodity Futures Trading Commission covers a small slice of an enormous market, but they’re a reasonable proxy for speculative flows as a whole………………………………………..Full Article: Source

Warning: Hedge Funds See Gold Price Collapse in 2015

Posted on 10 July 2015 by VRS  |  Email |Print

Despite an underwhelming U.S. jobs report and turmoil in Greece, institutional investors are more bearish on gold prices now than at any point in history. With China’s stock market in freefall and Europe on the brink of chaos, many analysts predicted that investors would seek the relative safety of precious metals. Those predictions have been wrong so far.
A recent report from the Commodity Futures Trading Commission (CFTC) shows that some of the world’s largest hedge funds are unloading their bullish positions on gold futures. The value of futures contracts fluctuate based on where investors think the asset’s price is headed. If they are optimistic, investors amass “long” positions; if they are pessimistic, they take “short” positions………………………………………..Full Article: Source

China funds target commodities after slump in equities

Posted on 09 July 2015 by VRS  |  Email |Print

Chinese hedge funds have been big short sellers of locally traded commodities, including iron ore, steel and rubber, after redeploying cash from tumbling equity markets where authorities have slapped curbs on trading, fund managers and traders said.
The Chinese equity market rout, which has persisted despite a raft of unprecedented policy measures, appears to be the chief factor driving the sell-off in commodities. There had been forced liquidation on China’s commodities markets due to margin calls tied to stock market exposure, as well as some short sellers taking advantage a flight of international investors from local markets, they said………………………………………..Full Article: Source

Gold market returns to net dehedging in Q1

Posted on 09 July 2015 by VRS  |  Email |Print

Following a year of net hedging in 2014, when hedging contributed 3.33-million ounces to gold supply, the first quarter of 2015 saw the market return to net dehedging, with the global producer gold hedge book contracting by 80 000 oz. This return of activity to the demand side of the market came after 1.45-million ounces of net hedging in the last quarter of 2014, Société Générale and Thomson Reuters GFMS revealed in the Global Gold Hedge Book Analysis for the first quarter on Wednesday.
The report further noted that the volume of the global producer hedgebook ended the quarter at 6.21-million ounces, with 29 companies becoming net dehedgers, and 16 companies adding to their delta-adjusted hedge positions over the three months………………………………………..Full Article: Source

Look out: Currency hedging is on the loose in ETF world

Posted on 09 July 2015 by VRS  |  Email |Print

That stampeding sound you hear is coming from fund managers scurrying to get into the currency-hedging trade. In recent weeks firms have brought more than a dozen new offerings in that category to the exchange-traded fund universe. ETFs looking to hedge exposure to currency issues across Europe, South America and Asia have blossomed as investor money pours into the strategy.
As is often the case on Wall Street, the natural worry is whether the rush might come too late. Foreign exchange dynamics present earlier this year have abated somewhat, making the need to protect against currency movements less urgent for the moment………………………………………..Full Article: Source

Funds’ swing bullish on ags raises fears of price ‘headwinds’

Posted on 08 July 2015 by VRS  |  Email |Print

US regulators confirmed that hedge funds indeed swung bullish in agricultural commodities by the most on record – but the extent of the shift provoked concerns over the ammunition left for spurring further price rises.
The Commodity Futures Trading Commission confirmed data which showed that managed money in the week to last Tuesday turned from a net short of 27,560 short-sold contracts in futures and options in the top 13 US-traded ags to a net-long of 342,857 held contracts………………………………………..Full Article: Source

Gold price: Hedge funds have NEVER been this bearish

Posted on 07 July 2015 by VRS  |  Email |Print

Gold is down nearly 10% from its 2015 highs and the pervading negative sentiment – despite all the factors working in the precious metal’s favour – is nowhere more evident than in the positioning of speculators on the futures market. Last week large gold futures investors such as hedge funds, referred to as “managed money”, slashed overall bullish positions by a whopping 55%.
Bets that prices will rise only amounted to 21,480 lots or 2.15 million ounces in the week to June 30 according to the Commodity Futures Trading Commission’s weekly Commitment of Traders data. That’s more than 14 million ounces below levels hit in January this year when gold reached its 2015 peak. The net long positioning is also the lowest since October 2006 when gold was worth less than $600 an ounce………………………………………..Full Article: Source

Officials spike data showing huge turn bullish by funds on ags

Posted on 07 July 2015 by VRS  |  Email |Print

Regulators cautioned investors over data which showed hedge funds making, by far, their biggest swing positive in positioning in agricultural commodities on record, saying the statistics were based on “incomplete” information. Sources including Rabobank said that the Commodity Futures Trading Commission, the US regulator, had revealed that managed money, a proxy for speculators, slashed its negative positioning in futures and options in the top 13 US-traded agricultural commodities in the week to June 30 at the fastest on record.
The data would show hedge funds turning net long - meaning that long positions, which profit when values rise, exceed short holdings, which benefit when values fall - for the first time in nearly three months………………………………………..Full Article: Source

Hedge funds wrong-footed by wheat price surge

Posted on 30 June 2015 by VRS  |  Email |Print

Hedge funds look to have been wrong-footed by the surge in wheat futures late last week, and saw profits dry up in soybeans as a rising market encouraged them to cover short positions at the fastest rate on record.
Managed money, a proxy for speculators, cut by more than 58,000 contracts its net short 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

Increasing investor concentration in hedge funds?

Posted on 25 June 2015 by VRS  |  Email |Print

According to the latest survey from data provider Preqin, some 51 investors have increased their allocation to the hedge funds to over the $1bn benchmark, while 27 investors have seen their allocation fall below that level.
There are now a total of 227 investors around the globe that have $1bn or more in assets invested in hedge funds, and collectively these investors have $735bn invested in the asset class, representing almost a quarter of the total capital invested in the industry (up 13%) on a year ago. Most of these were in America. What’s going on?……………………………………….Full Article: Source

Hedge funds return to extending bearish ag bets

Posted on 23 June 2015 by VRS  |  Email |Print

Hedge funds returned to extending their bearish bets on agricultural commodities, led by corn, in which wet Midwest weather is supporting US yield prospects, and sugar, helping drive prices to a six-year low.
Managed money, a proxy for speculators, raised by more than 81,000 contracts its net short 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

Funds pinch their nose and buy euros

Posted on 23 June 2015 by VRS  |  Email |Print

The notion that funds have been buying euros every time the Greek crisis deteriorates sounds daft. But the latest run of data covering funds’ activity does seem to bear it out. This will make any reaction to a Greek deal if (big if) we get one tough to call. As we’ve noted recently, the euro has held remarkably firm even while the Greek crisis has run right to the wire with few signs of progress or even good will, writes Katie Martin.
Bets against the euro have clearly been shrinking. Take a look at the dollar positioning chart below from ANZ. It covers positioning data from the Commodity Futures Trading Commission. This represents a tiny slice of the currencies market as a whole, but it’s a pretty good proxy for funds’ activity………………………………………..Full Article: Source

Gold price: Hedge funds scramble to cover 233 tonnes

Posted on 19 June 2015 by VRS  |  Email |Print

Gold on Thursday was clawing its way back to the $1,200 an ounce level, buoyed by dovish comments from the US Federal Reserve about the pacing of interest rate cuts which took some shine of the strong dollar. In brisk afternoon trade in New York, gold for delivery in August, the most active contract, added $25.50 an ounce or 2.2% from Wednesday’s close to exchange hands for $1,202.40 an ounce, the best level since May 22.
Lower-for-longer interest rates add to the allure of gold which produces no income and relies on price appreciation to attract investors. Worries about the economic impact of the Greek debt crisis and a weaker dollar also boosted the yellow metal which usually moves in the opposite direction to the greenback………………………………………..Full Article: Source

Hedge funds slash bearish ag bets at quickest rate in 15 months

Posted on 16 June 2015 by VRS  |  Email |Print

Hedge funds cut their bearish bets on ag commodities at the fastest rate in 15 months as mounting weather fears prompted a revival in prices – although there are doubts of the more positive positioning holding.
Managed money, a proxy for speculators, slashed by nearly 130,000 contracts its net short 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 bearish ag bets at fastest pace in 3 months

Posted on 09 June 2015 by VRS  |  Email |Print

Hedge funds turned less bearish on ags at the fastest pace in three months, although it was driven by short-covering in just one commodity, soyoil, and left the net short at a historically high level.
Managed money, a proxy for speculators, cut by more than 60,000 contracts its net long position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Fund Managers Cut Oil Bets Ahead of OPEC Meeting

Posted on 05 June 2015 by VRS  |  Email |Print

Money managers have been cutting back their bets on oil in the run up to the crucial meeting of the Organization of the Petroleum Exporting Countries in Vienna this week. The number of bets taken by hedge funds and other big investors on the global oil benchmark Brent—comprising bets on both rising and falling prices—has fallen to just over 320,000, the equivalent of 320 million barrels of oil, its lowest level in nine months.
The number of bets on West Texas Intermediate, the U.S. gauge, is at its lowest since the beginning of January. The $2.5 billion United States Oil Fund USO -2.53 % LP, the largest U.S. exchange-traded fund investing in U.S. oil futures, has also drawn back, registering outflows of close to $1 billion in the past two months, according to investment research company Morningstar. In April, the fund lost $550 million, the biggest withdrawal since 2011. It lost another $390 million in May, the data shows………………………………………..Full Article: Source

The currency hedging trade is starting to fade

Posted on 05 June 2015 by VRS  |  Email |Print

The trendiest trade of 2015 has lost some of its mojo lately. With global central banks in overdrive to devalue and the U.S. heading in the opposite direction, investors had been piling into exchange-traded funds that hedged against big currency moves.
Four of the top 10 ETFs this year in terms of fund inflows are related to currency hedging. That includes the most popular one, the WisdomTree Europe Hedged Equity, which has taken in $13.6 billion, according to ETF.com. The fund is up a gaudy 16.8 percent year to date but is down 2.5 percent over the past week and off 0.4 percent for the month. The funds often use a balance of dividend-paying and export-based companies to hedge currency exposure………………………………………..Full Article: Source

Investors Cut Gold-Fund Holdings to Four-Month Low on Fed Bets

Posted on 03 June 2015 by VRS  |  Email |Print

Investors sold gold through bullion-backed funds, cutting holdings to a four-month low, on speculation that the Federal Reserve is getting closer to raising interest rates. Futures advanced in New York.
Assets in exchange-traded products backed by the metal dropped 2.4 metric tons to 1,599.5 tons as of Monday, according to data compiled by Bloomberg. Holdings slipped 4.8 percent since late February and are at the lowest since Jan. 14………………………………………..Full Article: Source

Metal Funds Rule Commodities in May as Traders Bet on Gains

Posted on 01 June 2015 by VRS  |  Email |Print

Investors are buying into industrial-metal funds at a faster pace than any other commodity, underscoring optimism about the health of the global economy. U.S. exchange-traded products backed by the metals attracted $71.1 million in May, putting flows on track for the biggest monthly increase since 2012, according to data compiled by Bloomberg as of Wednesday.
The extra funds represent a 22 percent increase in market value, more than other commodity groups such as agriculture and energy. Money managers are betting that China’s efforts to kickstart its slowing economy, including three interest-rate cuts in six months, will succeed in increasing demand for raw materials………………………………….Full Article: Source

India: RBI asks banks to create awareness on hedging agri-commodities

Posted on 29 May 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) on Thursday advised banks to create awareness among their borrowers for hedging agricultural commodity price risk. “Banks should encourage hedging by the agri-borrowers by creating awareness amongst them regarding the utility and benefits of hedging through agri-commodity derivatives,” RBI said in a notification to all banks. “This would help to develop strong risk management capabilities to manage agri-commodity price risk,” it added.
At the same time, said RBI, “banks must keep the sophistication, understanding, scale of operation and requirements of their agri-borrowers in mind while advising on the availability and use of these instruments.” To begin with, banks were asked to encourage large agricultural borrowers such as agricultural commodity processors, traders, millers and aggregators to hedge their commodity price risk…………………………………Full Article: Source

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