Monday, 24 November 2014
Last updated 2 hours ago
Mar 10 2010 | 11:44am ET
There has been much talk about the decline of the dollar as the world’s favorite currency, but not among hedge fund managers. The greenback remains their favored currency by a wide margin, according to a new survey.
Fifty-seven percent of those responding to the TrimTabs Investment Research/BarclayHedge Currency Survey are bullish on the dollar over the next three months. The Brazilian real was a distant second, favored by 11.5%, followed by the yen and “other” currencies, among them the Australian dollar, with 8.2%.
The Canadian dollar was picked by 6.6%. The euro was favored by just 4.9%; about three times as many think a “full breakup” of the eurozone is likely, most of them British and American fund managers. The “remarkably unpopular” British pound Sterling was picked by 3.3%.
“Hedge fund managers overwhelmingly favor the U.S. dollar in the short term,” the report said. “This confirms other sentiment surveys and is consistent with aggressive buying of U.S. dollar index futures by speculative traders.”
Most hedge fund managers—59%—believe the Greek sovereign debt crisis could spread to other countries in the European Union. Most of them disagree, however, with the 15% of their colleagues that think the euro is doomed.
“Popular opinion in Germany is strongly opposed to a bailout of the free-spending Greeks, and a weak euro is in the interest of German exporters,” Vincent Deluard of TrimTabs said. “The French and German governments are therefore most likely to let the bond market bite Greece—but act if the crisis threatens other eurozone member countries.”
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...