Thursday, 2 October 2014
Last updated 20 min ago
Dec 3 2012 | 12:16pm ET
The investable hedge fund composite index was up 0.13% as of November 28, according to the latest Bank of America Merrill Lynch Hedge Fund Monitor.
Despite their losses, hedge funds still outperformed the S&P 500 which was down 0.16% for the same period.
Merger arbitrage and convertible arbitrage were the best-performing hedge fund strategies, up 0.51% and 0.44%, respectively. CTAs, on the other hand, shed 0.35%, the worst performance of the month.
BofAML analyst Mary Ann Bartels says market neutral funds sold market exposure to 2% from 3% net long during the monitored period while equity long/short funds sold market exposure to 27% from 29% net long, further below the 35-40% benchmark. Macros continued to unwind, said Bartels, selling their long positions in the S&P 500, NASDAQ 100, commodities and 10-year Treasuries while partially covering their shorts in the dollar and EM. Meanwhile, she said, they reduced their large-cap preference and added to their shorts in EAFE.
Commodity Futures Trading Commission data shows that large speculators bought the S&P 500 and NASDAQ 100 and remained flat the Russell 2000 while agricultural specs sold soybean, bought corn and remained flat wheat.
Large metals speculators bought gold, silver, palladium and platinum while maintaining their shorts in copper. Energy specs bought heating oil and gasoline, sold crude and added to their shorts in natural gas.
Forex speculators added to their shorts in yen, bought the U.S. dollar and partially covered the euro. Interest rate specs sold 30-year and 2-year Treasuries, and bought 10-year Treasuries.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...