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Hedge fund gold bets less bullish as Paulson holds: Commodities

Posted on 25 November 2013 by VRS  |  Email |Print

Hedge funds got less bullish on gold, cutting their net-long position to a four-month low, before prices capped the biggest weekly retreat since September. Net holdings in futures and options tumbled 20 percent to 44,291 contracts in the week ended Nov. 19, the lowest since July 9, U.S. Commodity Futures Trading Commission data show.
Short bets rose 16 percent to the highest since Aug. 6 and long wagers slid 2.5 percent. Net-bullish wagers across 18 U.S.- traded commodities fell 12 percent as investors became the most bearish on copper since July and cut their silver holdings by the most in five months………………………………………..Full Article: Source

Global gold demand fell 21pct in last quarter as investors pulled out of ETFs

Posted on 18 November 2013 by VRS  |  Email |Print

Billionaire hedge fund manager John Paulson, who cut his gold holdings by more than half in the second quarter, maintained his bet on the metal over the next three months as prices rebounded.
Paulson & Co, the largest investor in the SPDR Gold Trust, the biggest exchange-traded product for the metal, held 10.23 million shares as on September 30, unchanged from June 30, according to a government filing on Thursday. Billionaire George Soros took a stake in the Market Vectors Gold Miners ETF………………………………………..Full Article: Source

Gleeson: Why I don’t hold commodities funds

Posted on 18 November 2013 by VRS  |  Email |Print

An unconstrained global fund offers the most effective way to access the commodities story, according to head of FE Research Rob Gleeson, who thinks everyday investors should avoid physical commodities funds and ETFs.
Gleeson thinks there are plenty of reasons to be interested in investing in commodities, but says that holding them directly is a high-risk strategy, illustrated by the terrible time many have endured in recent months………………………………………..Full Article: Source

Natural gas futures, funds retreat

Posted on 14 November 2013 by VRS  |  Email |Print

Natural gas futures prices continued their decline Wednesday, pinching fund investors betting on a recovery. Henry Hub natural gas for December delivery fell 5.1 cents, or 1.4% to $3.56 per million British thermal units on Wednesday, according to Dow Jones data.
Natural gas prices have declined roughly 19% since April, when they reached a high near $4.40. Year to date, natural gas prices are up roughly 6%………………………………………..Full Article: Source

Funds cut bullish gold positions on Fed outlook

Posted on 12 November 2013 by VRS  |  Email |Print

Hedge funds cut bullish gold bets, adding the most short contracts in four weeks, as U.S. economic growth fuels speculation the Federal Reserve will trim stimulus. Holdings across commodities dropped the most since April.
The net position in gold slid 13% to 87,689 futures and options in the week ended Nov. 5, U.S. Commodity Futures Trading Commission data show. Short bets jumped 37%, the most since Oct. 15, and long wagers fell 4.9%. Combined holdings across 18 U.S.-traded commodities dropped 20% to 658,263 contracts as investors cut cotton positions to the lowest this year and crude-oil bets to the fewest since June………………………………………..Full Article: Source

Hedge funds cut bullish gold wagers on Fed outlook

Posted on 11 November 2013 by VRS  |  Email |Print

Hedge funds cut bullish gold bets, adding the most short contracts in four weeks, as U.S. economic growth fuels speculation the Federal Reserve will trim stimulus. Holdings across commodities dropped the most since April.
The net position in gold slid 13 percent to 87,689 futures and options in the week ended Nov. 5, U.S. Commodity Futures Trading Commission data show. Short bets jumped 37 percent, the most since Oct. 15, and long wagers fell 4.9 percent………………………………………..Full Article: Source

Currency funds finally record a good month

Posted on 07 November 2013 by VRS  |  Email |Print

It hasn’t been a happy year so far for currency focused hedge funds. They’ve eked out their first positive monthly return in October since March, but only just. The stage still looks set for it to be a drab year for this asset class. Why? The funds have failed to predict some key trends like sterling’s rally and the euro’s rise against the dollar to $1.38.
The Parker Global Currency Managers Index, which tracks the performance of funds specializing in the asset class, rose 0.66% in October. That’s the best return the index has seen since January and is a promising sign for foreign-exchange funds, which invest in the $5.3 trillion a day global foreign-exchange market, placing bets on the rise or fall of a particular currency against another………………………………………..Full Article: Source

A hardscrabble year for commodity funds

Posted on 05 November 2013 by VRS  |  Email |Print

How commodity funds have stacked up in the past six months. We screened for the 15 best-performing funds for the six months ended Sept. 30. The U.S. dollar, segregated and duplicate versions of funds were excluded, along with funds closed to new investors.
These funds invest first and foremost in physical commodities, or use derivatives to increase exposure to this sector. Only one fund managed a positive return in the period as the commodities sector continues to get pummelled from all sides………………………………………..Full Article: Source

Investors turn to new multi-strategy commodity funds

Posted on 05 November 2013 by VRS  |  Email |Print

Sophisticated commodity funds that switch between different strategies in pursuit of performance are gaining favour with investors, who have lost patience with single-strategy products. Commodity investors complain they are paying active management fees for returns that are essentially no better than the market as a whole - or “beta” in investment management parlance.
Mark Higgins, managing director of UK-based financial group 1Oak Capital, said some commodity hedge funds persisted for too long with non-performing strategies and have had to close or have suffered large drawdowns as a result………………………………………..Full Article: Source

Hedge funds at their most bullish on ags this year

Posted on 01 November 2013 by VRS  |  Email |Print

Hedge funds took their positioning on rising agricultural commodity prices to the highest in 10 months, encouraged by ideas of strong demand for US wheat exports, and a dent to Brazilian sugar output from rains.
Managed money, a proxy for speculators, lifted its net long on the top 13 US-traded agricultural commodities to 498,748 contracts as of October 15, Agrimoney.com analysis of data from the Commodity Futures Trading Commission shows…………………….Full Article: Source

Oakley Capital said to close fund of hedge funds in commodities

Posted on 30 October 2013 by VRS  |  Email |Print

Oakley Capital Management Ltd. closed its commodities fund of hedge funds as a gauge of performance across the industry retreated for a third year, according to two people with direct knowledge.
The London-based fund shut in July and Portfolio Manager Fabio Cortes left the company at about the same time, said the people, who asked not to be identified because the information is private. The fund managed $10 million of assets, one of the people said. An e-mail seeking comment sent to a LinkedIn Corp. account in Cortes’ name on Oct. 25 wasn’t answered…………………………………….Full Article: Source

Foreign hedge funds warm to China

Posted on 29 October 2013 by VRS  |  Email |Print

More foreign hedge funds are devoting resources to China, attracted by strong returns, the potential for growth and signs that the country will continue to develop its financial markets.
China-focused hedge funds managed $12.9 billion in assets as of the end of September, exceeding levels before the global financial crisis, according to Eurekahedge, which tracks the industry. In the nine months ended Sept. 30, average returns from China-focused hedge funds eclipsed those in neighboring countries, with the exception of Japan………………………………………..Full Article: Source

There is no point in holding commodities funds, says Merricks

Posted on 29 October 2013 by VRS  |  Email |Print

There is no merit in holding commodities funds in the current environment, according to Andy Merricks, who says they offer little in the way of diversification benefits.
The majority of commodities and mining funds have had a torrid time recently as headwinds such as falling prices, a slowdown in the emerging markets and the strengthening of the US dollar have all caused sentiment to turn against the asset class………………………………………..Full Article: Source

Oil traders hunger for lost years of volatility

Posted on 24 October 2013 by VRS  |  Email |Print

Many hedge funds do not care how high prices are. They only want oil to move. Using complex options trades such as “straddles”, which gain value when markets go up or down, they “buy” volatility. A straddle involves buying both a bullish call option and a bearish put option at the same strike price – say, $110 a barrel.
Clive Capital has thrown in the towel. Deep into its third year of losses, what was once one of the world’s largest commodity hedge funds shut down late last month. The closure is symptomatic of a broader trend – or more accurately, the lack of one. Hedge funds once feasted on wild action in oil. Now, volatility has fallen to historic lows. Plodding prices have forced traders to experiment with new ways to make money. ……………………………………….Full Article: Source

Crunch time for commodity managers as fundamentals return

Posted on 16 October 2013 by VRS  |  Email |Print

This year is likely to be make or break for commodity funds as supply and demand fundamentals gain the upper hand in driving prices following five years of dismal performance determined mainly by economic factors.
The resurgence of fundamentals should, in theory, make it easier for active managers with specialist knowledge and skills to deliver decent returns, but this change may not turn out to be the panacea that they had hoped for………………………………………..Full Article: Source

A changing of the guard in commodities hedge funds

Posted on 09 October 2013 by VRS  |  Email |Print

A super-cycle during the last decade, driven by high demand from China, created fertile ground for funds making big, directional bets. However, in more recent years clear trends have deserted the market and volatility has reduced, according to hedge fund managers, resulting in mixed performance and some high-profile closures.
The likes of the UK’s Clive Capital and US-based Arbalet Capital have closed, or are closing, but firms including Frere Hall Capital Management and Andurand Capital Management are already emerging as new names to watch………………………………………..Full Article: Source

Commodity assets increase to a four-month high, Barclays says

Posted on 02 October 2013 by VRS  |  Email |Print

Commodity assets under management rose to a four-month high in August as prices of raw materials increased and investors slowed the pace of selling precious metals, Barclays Plc said.
The value of commodity assets under management rose to $363 billion in August, up $13 billion from the prior month, according to an e-mailed report from the bank, which tracks index and exchange-traded products and medium-term notes. Assets were still below a peak of $458 billion in June, the bank said………………………………………..Full Article: Source

Gold bulls raise wagers most in month on stimulus: Commodities

Posted on 30 September 2013 by VRS  |  Email |Print

Hedge funds’ combined holdings in gold futures rose the most this month as continued U.S. monetary stimulus spurred investors to sell short contracts and sent prices toward the first quarterly advance in a year.
The net-long position in bullion jumped 12 percent to 78,654 futures and options in the week ended Sept. 24, the most since Aug. 27, U.S. Commodity Futures Trading Commission data show. Long wagers gained 1.8 percent and short bets fell 17 percent, the biggest drop in four weeks. Combined net-long holdings across 18 U.S.-traded commodities climbed 1.7 percent, the first gain in September………………………………………..Full Article: Source

Hedge funds reduced bullish gold bets before rally: Commodities

Posted on 23 September 2013 by VRS  |  Email |Print

Hedge funds cut bullish gold bets for a second week, reducing long contracts to the lowest since June, before prices rose the most in a month as the Federal Reserve unexpectedly decided not to taper stimulus.
The net-long position held by speculators fell 17 percent to 70,113 futures and options in the week ended Sept. 17, U.S. Commodity Futures Trading Commission data show. Long wagers fell 6.8 percent to 109,217, the fewest since June 25, and short bets rose 21 percent………………………………..Full Article: Source

Commodities fund Arbalet to close soon as investors flee: sources

Posted on 19 September 2013 by VRS  |  Email |Print

Commodities hedge fund Arbalet Capital is set to close over the next month or two, just a year and a half since its launch, after sluggish returns sparked an investor exodus at the firm, people familiar with the matter said.
Run by 30-year-old Jennifer Fan, one of the youngest hedge fund managers and among the few women in the business, Arbalet had nearly $700 million of capital at the peak of its fund raising last year, and its launch in April was one of the biggest of 2012………………………………………..Full Article: Source

Hedge funds enjoy post-crisis popularity with ‘safe’ image

Posted on 18 September 2013 by VRS  |  Email |Print

Hedge funds may be making their clients less money than mainstream financial markets, but with their portfolios increasingly seen as a safer, low-volatility option in a tough investment landscape they have more cash to manage than ever.
The industry’s coffers hit a record $2.4 trillion globally in 2013, swollen by money from U.S. and European pension funds seeking help to find returns in the face of low interest rates and unpredictable markets post-financial crisis………………………………………..Full Article: Source

No. 2 U.S. pension fund CalSTRS picks Hermes as commodities manager

Posted on 13 September 2013 by VRS  |  Email |Print

The California State Teachers’ Retirement System said it has picked Hermes Fund Managers to be one of its two commodity managers, the first major step toward realizing the portfolio approved three years ago as an inflation hedge.
CalSTRS, the second largest U.S. pension fund with about $150 billion in assets, had considered a $2.5 billion allocation when it first studied a foray into commodity markets in 2010. It eventually settled on a portfolio of $150 million………………………………………..Full Article: Source

3 funds to cash In on an oil boom

Posted on 12 September 2013 by VRS  |  Email |Print

The energy sector has been sluggish in recent years, but 2013 has given a boost to oil and gas stocks. Geopolitical unrest in the Middle East has resulted in a “risk premium” for crude, a weaker dollar has slightly lifted commodity prices, and hope of a turnaround in European manufacturing has emerged in recent months.
As a result, we have seen a lift to a number of energy plays. But naturally, not all oil stocks are created equal. Consider megacap Exxon Mobil (XOM), which is up a mere 2% year-to-date in 2013 vs. 18% for the S&P 500, or nationalized Chinese oil stock CNOOC (CEO), which is slightly in the red this year………………………………………..Full Article: Source

Alt Ucits manager hands over commodities fund

Posted on 11 September 2013 by VRS  |  Email |Print

Commodities specialist Simon Wainwright has stepped back from active management and handed over responsibility for the Globersel – Pactum Natural Resources fund. The London-based manager, who has co-run the $24 million fund since launch, will hand full control of the fund over to Tim Callaghan.
Pactum Asset Management said Wainwright will remain an advisor on the fund but is moving to Texas to assume a role within the oil and gas services industry………………………………………..Full Article: Source

10 emerging markets funds for the long-term

Posted on 10 September 2013 by VRS  |  Email |Print

Gold isn’t the only former darling that has fallen out of favor recently. Emerging market securities, which were on everyone’s “must own” list not long ago, have performed poorly over the last couple of years. After peaking in mid-2011, the MSCI Emerging Market Index has been on a bumpy downward trajectory culminating in a loss of 9.6% so far in 2013.
Some people fear that rising interest rates will slow global growth and that will have the most pronounced impact on the developing countries. A related fear is that the apparent slowdown in China will drag down not only that country’s securities but the stocks in many other emerging markets as well………………………………………..Full Article: Source

Hedge fund gold bets climb to highest since January: Commodities

Posted on 09 September 2013 by VRS  |  Email |Print

Hedge funds’ combined holdings in gold futures increased to the most bullish since January on mounting concern that conflict in the Middle East will boost crude-oil prices, slowing economic growth and stoking inflation.
The net-long position rose 3.6 percent to 101,396 futures and options in the week ended Sept. 3, U.S. Commodity Futures Trading Commission data show. Long wagers gained 0.6 percent and short bets contracted 8.6 percent, the fourth consecutive drop and the longest retreat in a year. Combined net-long holdings across 18 U.S.-traded commodities fell 0.3 percent as investors got less bullish on copper………………………………………..Full Article: Source

Developing countries move closer to currency fund

Posted on 06 September 2013 by VRS  |  Email |Print

Five large developing countries are moving closer to launching a mutual support fund as a response to large outflows of capital from emerging markets, Russia’s finance minister said Thursday.
But the group—Brazil, Russia, India, China and South Africa—appear unwilling to embark on coordinated action to stabilize volatile currencies soon, with China’s vice finance minister saying there is no need for a rescue plan and stressing that it is up to each country affected by recent markets turbulence to concentrate on putting its own house in order………………………………………..Full Article: Source

Swiss & Global launches industrial metals funds

Posted on 03 September 2013 by VRS  |  Email |Print

Swiss & Global Asset Management is set to launch four commodities funds on October 1 that will buy and store quantities of aluminium, copper, nickel and zinc. The JB Industrial Metals Funds aim to deliver the price performance of the metals after safekeeping, insurance and management fees.
“We store the metals in various warehouses around the world and are able to reduce costs by constantly monitoring where demand, and therefore storage costs, are lowest; and adjusting locations accordingly,” says Stephan Müller, product developer of industrial and precious metals funds at Swiss & Global Asset Management………………………………………..Full Article: Source

Morningstar: European funds post inflows after June exits

Posted on 03 September 2013 by VRS  |  Email |Print

European investors’ sentiment “reversed” during July 2013 with a return to long-term funds following a month of massive outflows in June, says Morningstar.
The latest Morningstar Direct Asset Flows Commentary for Europe shows inflows of €26.8bn (£22.7bn) for European open-ended funds during July, compared with outflows totaling €35bn over the course of the previous month………………………………………..Full Article: Source

Gold bulls increase wagers to highest since January: Commodities

Posted on 02 September 2013 by VRS  |  Email |Print

Hedge funds and other speculators are making the biggest bet on a gold rally since January amid mounting signs that the U.S. will lead a military strike against Syria drove prices to a three-month high.
Money managers boosted their net-long position by 34 percent to 97,902 futures and options by Aug. 27, the most since Jan. 22, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts tumbled 37 percent to 32,088, the biggest drop in 11 months. Net-bullish holdings across 18 U.S.- traded commodities climbed 18 percent to 824,251, the highest since February………………………………………..Full Article: Source

BRICS may agree on $100 bln currency fund during G20 summit

Posted on 02 September 2013 by VRS  |  Email |Print

BRICS countries may reach consensus at next month’s G20 summit on creating a $100 billion currency reserve fund to help ease short-term liquidity pressure and safeguard financial stability of major emerging economies, a senior Chinese central bank official said today.
Yi Gang, deputy governor of the People’s Bank of China, said leaders of the BRICS group, Brazil, Russia, India, China and South Africa, have agreed on the ratio of contributions, operation mechanisms, governance structure and loan-to-value ratio of a Contingent Reserve Arrangement (CRA)………………………………………..Full Article: Source

Index funds add bullish commodity positions in July

Posted on 30 August 2013 by VRS  |  Email |Print

Index funds increased their bullish exposure to commodities in July for the first time in three months amid signs of a better economy and higher oil and gold prices, Commodity Futures Trading Commission data showed on Thursday.
The value of net-long index fund investments in U.S. commodities rose by nearly $9 billion, or 5 percent, to $193.4 billion at the end of last month, according to the CFTC’s monthly Index Investment Data report………………………………………..Full Article: Source

Why gold funds could be set for further gains

Posted on 29 August 2013 by VRS  |  Email |Print

In previous three-month periods where gold has lost 24 per cent or more, it has rebounded by an average of 20.7 per cent in the next three months. Gold investors with a high conviction in the asset class were rewarded for their patience this week, following a resurgence in the price of the precious metal.
The commodity first fell sharply in April, when investors began to sell out of it to take advantage of the bull run in equities. The relatively benign level of inflation so far this year also lessened the attractiveness of gold as a hedge………………………………………..Full Article: Source

Macro hedge funds turn negative on commodities and emerging markets

Posted on 27 August 2013 by VRS  |  Email |Print

Macro hedge funds have aggressively reduced their commodities position to a net short for the first time since June according to the latest research from Bank of America Merrill Lynch. Macro funds have instead opted to increase their exposure to the S&P500 and NASDAQ. Data also shows that both long short & market neutral strategies have disinflationary expectations.
The investible Hedge Fund Composite Index was down 0.57% for the month, as of Aug 21, compared to a -3.6% return for the S&P 500 index. In terms of strategies, Convertible arbitrage performed the best, up 0.16% while Equity Long Short performed the worst, falling 0.93%. Market Neutral funds decreased market exposure to 9% net long from 15% net long. Equity Long/Short also reduced market exposure to 34% from 42% net long; slightly below the 35-40% benchmark level………………………………………..Full Article: Source

Hedge fund gold bets at six-month high after rally: Commodities

Posted on 26 August 2013 by VRS  |  Email |Print

Hedge funds and other speculators raised bets on higher gold prices to the most in six months as signs of slowing U.S. growth drove bullion above $1,400 an ounce for the first time since June.
The net-long position increased 29 percent to 73,216 futures and options by Aug. 20, U.S. Commodity Futures Trading Commission data show. Short contracts fell for a second week and to the lowest since Feb. 12. Net-bullish holdings across 18 U.S.-traded commodities jumped 34 percent, the most since July 2010, as wagers on copper and soybeans more than doubled………………………………………..Full Article: Source

Funds build bullish positions in precious metals futures, options — CFTC

Posted on 20 August 2013 by VRS  |  Email |Print

A price rally inspired speculators to build bullish positions in precious metals futures and options traded on the Comex division of New York Mercantile Exchange and the Nymex, confirming many market participants’ expectations that speculators shed short positions when prices rose.
The gains in the data released Friday by the Commodity Futures Trading Commission came via a mix of short covering, that is buying back of previously sold positions, and newly added long positions as noted in both the disaggregated and legacy reports………………………………………..Full Article: Source

Calpers commodity holdings increased 1pct in June to $1.207bln

Posted on 15 August 2013 by VRS  |  Email |Print

The California Public Employees’ Retirement System, the largest U.S. pension fund, reported the value of its commodity holdings climbed 1 percent in June from the previous month.
The fund held $1.207 billion in commodities as of June 30, the most-recent data available, or 0.5 percent of the total assets listed at $257.876 billion, according to a monthly report posted on the fund’s website for next week’s investment committee meeting. That’s up from $1.195 billion on May 31, or 0.5 percent of total assets of $261.643 billion, a separate report showed………………………………………..Full Article: Source

Hedge funds net short on ags for first time ever

Posted on 13 August 2013 by VRS  |  Email |Print

Hedge funds have, for the first time on record, bet more on falling agricultural commodity prices than rising ones, turning more negative in particular on soybean and cattle prices, and extending short positions in corn too.
Managed money, a proxy for speculators as of August 6 had a net short in futures and options in the 13 major US-traded agricultural commodities for the first time since records began in 2006, according to data kept by the Commodity Futures Trading Commission, the US regulator………………………………………..Full Article: Source

Hedge funds trim gold bets on stimulus speculation: Commodities

Posted on 12 August 2013 by VRS  |  Email |Print

Hedge funds cut bullish gold bets by the most since June amid speculation about whether the Federal Reserve will begin trimming its monthly bond purchases. Money managers cut their net-long position by 27 percent to 48,103 futures and options by Aug. 6, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts rose 26 percent.
Net-bullish bets across 18 U.S.-traded raw materials dropped 19 percent to the lowest since March and a measure of wagers across agricultural commodities turned negative for the first time on record………………………………………..Full Article: Source

Commodity funds on track for big launch year in uncertain market

Posted on 08 August 2013 by VRS  |  Email |Print

An ex-Glencore oil trader and a veteran grains merchant with futures broker R.J. O’Brien are among those behind the largest number of commodity fund launches in 3 years despite investor worries the multi-year rally in those markets is over.
A dozen hedge funds trading raw materials derivatives on discretion were launched in the first six months of this year, the same as in the whole of 2012, data from London-based research house Preqin showed. In 2011, only seven of such funds took off, the smallest number in 5 years………………………………………..Full Article: Source

Hedge funds make record bearish corn bets on supply: Commodities

Posted on 08 August 2013 by VRS  |  Email |Print

U.S. farmers are poised to reap their biggest-ever corn crop, expanding global stockpiles to the most in 13 years and spurring hedge funds and other speculators to make record bets that prices will keep slumping.
The harvest in the largest grower will jump 30 percent to 14.036 billion bushels (356.5 million metric tons), the average of 27 analyst estimates compiled by Bloomberg shows. That’s 53 million bushels more than they expected a month ago and 86 million above the government’s July forecast………………………………………..Full Article: Source

Commodity funds on track for big launch year in uncertain market

Posted on 07 August 2013 by VRS  |  Email |Print

An ex-Glencore oil trader and a veteran grains merchant are among those behind the largest number of commodity fund launches in 3 years despite investor worries the multi-year rally in those markets is over.
A dozen hedge funds trading raw materials derivatives on discretion were launched in the first six months of this year, the same as in the whole of 2012, data from London-based research house Preqin showed. In 2011, only seven of such funds took off, the smallest number in 5 years………………………………………..Full Article: Source

Palladium shortages spur bullish hedge-fund wagers: Commodities

Posted on 06 August 2013 by VRS  |  Email |Print

At a time when gold and silver are tumbling the most in three decades, hedge funds are holding a near-record bullish bet on palladium as forecasters from Morgan Stanley to Credit Suisse Group AG predict years of shortages.
Demand will exceed output by 1.33 million ounces in 2013, more than North America produces in a year, Morgan Stanley says. Credit Suisse anticipates deficits through at least 2016, and researcher CPM Group says mines won’t catch up for a decade. Prices will average $800 an ounce in the first quarter, 9.2 percent more than now, and $850 in 2015, the median of as many as 12 analyst estimates compiled by Bloomberg show………………………………………..Full Article: Source

Hedge funds most gloomy ever on ag price prospects

Posted on 06 August 2013 by VRS  |  Email |Print

Hedge funds have turned their least optimistic ever on prospects for agricultural commodity prices, slashing exposure to rising soybean futures, and hiking their net short position in corn to a record high.
Managed money, a proxy for speculators, slashed its net long position in futures and options in the major US-traded agricultural commodities by nearly 48,000 contracts to 58,489 lots, Agrimoney.com analysis of regulatory data shows………………………………………..Full Article: Source

Rick Ferri: Commodities are like dead money

Posted on 05 August 2013 by VRS  |  Email |Print

Commodity funds are like a B-movie that gets rave reviews on Wall Street because of the high fees they generate. Stay away from this asset class and you’ll be better off for it in the long term.
Commodities are like dead money. They do not pay any interest or dividends and are not expected to earn any return over the inflation rate. A bar of gold does not generate any cash and will never turn into two bars of gold. Year after year it just sits there, costing you money in storage, insurance and perhaps a management fee if you invest in a gold ETF………………………………………..Full Article: Source

Gold bulls cut wagers on signs U.S. growth quickens: Commodities

Posted on 05 August 2013 by VRS  |  Email |Print

Hedge funds lowered bullish gold bets for the first time in five weeks as signs of accelerating U.S. growth contributed to the longest retreat in prices in a month.
Money managers cut their net-long position by 6.5 percent to 65,517 futures and options by July 30, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts rose 6.8 percent, the biggest increase in six weeks. Net-bullish bets across 18 U.S.-traded commodities contracted 15 percent as investors cut wagers on higher crude prices for the first time in a month and more than doubled bearish bets on copper………………………………………..Full Article: Source

Commodities losing their allure as hedge against volatility

Posted on 02 August 2013 by VRS  |  Email |Print

A new study from the Bank for International Settlements disputes the idea that adding commodities to a portfolio can lower the volatility of returns. Considering this has been the bedrock idea underlying the buying and selling of commodities as an asset class over the past 15 years, this is big news.
Taken in combination with trends negative for commodities markets such as the migration of manufacturing back to developed markets and 3D printing, there may be fewer reasons for investors to consider the asset class…………………………………..Full Article: Source

China wealth fund downgrades commodities

Posted on 29 July 2013 by VRS  |  Email |Print

China’s sovereign wealth fund has switched emphasis away from commodities to financial stocks in its overseas equity holdings over the past year. The investment shift by China Investment Corp is notable because the fund is uniquely placed to make a call about the global commodities market, with Chinese demand one of the biggest drivers of prices.
Since its establishment in 2007 CIC had focused most heavily on commodities. But the fund, which had $575bn of assets under management at the end of last year, changed tack as Chinese growth slowed………………………………………..Full Article: Source

Hedge funds raise gold bets as Goldman sees decline: Commodities

Posted on 29 July 2013 by VRS  |  Email |Print

Hedge funds raised wagers on a gold rally as speculation that the Federal Reserve will hold off on curbing stimulus drove prices toward the biggest gain in 18 months. Goldman Sachs Group Inc. expects the rally to reverse.
Money managers increased their net-long position by 26 percent to 70,067 futures and options as of July 23, U.S. Commodity Futures Trading Commission data show. The fourth consecutive weekly gain is the longest streak since October. Bullish wagers across 18 U.S.-traded commodities gained 7.4 percent to 615,140. Investors more than doubled bets on lower corn prices to a record net-short holding………………………………………..Full Article: Source

Clouds over hedge fund industry grow darker

Posted on 26 July 2013 by VRS  |  Email |Print

One of the most-successful, high-profile hedge funds indicted on insider-trading charges. Lousy performance. Big losses on gold bets gone bad. Bad P.R.
Not to mention a critical story earlier this month by Bloomberg BusinessWeek which wondered aloud if these pricey investment vehicles run by the so-called smart money for rich folks are for sucker……………………………………….Full Article: Source

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