Monday, 20 October 2014
Last updated 2 days ago
Jan 7 2013 | 9:47am ET
Hedge funds were up 3.02% in 2012, according to the latest Bank of America Merrill Lynch investable hedge fund composite index, trailing the S&P 500 which was up 11.52% as of December 28, 2012.
Convertible arbitrage and event-driven funds were the best performers, up 7.10% and 5.47%, respectively. Market neutral funds were the biggest losers, down 4.81% for the year.
According to BofAML analyst Mary Ann Bartels, market neutral funds sold market exposure to 3% from 4% net long over the monitored period; equity long/short funds aggressively sold market exposure to 19% from 27% net long, well below the 35-40% benchmark; while macros bought the S&P 500, NASDAQ 100 and U.S. dollar; maintained their shorts in 10-year Treasuries; added to their shorts in EM and EAFE exposures; and sold commodities to a net short for the first time since August 2012.
Commodity Futures Trading Commission data shows large speculators bought the S&P 500 and Russell 2000 futures but sold the NASDAQ 100.
Agriculture speculators sold everything—soybean, corn and wheat—while metals speculators bought copper and palladium, sold silver and platinum and remained flat gold.
Large energy specs bought crude, heating oil and gasoline but added to their shorts in natural gas while forex speculators partially covered the yen and the U.S. dollar while buying the euro to a net long for the first time since August 2011.
Interest rates specs bought 10- and 2-year Treasuries while selling 30-year Treasuries to flat.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...