Wednesday, 22 October 2014
Last updated 14 hours ago
Jan 14 2013 | 1:14pm ET
Hedge funds are levering up in the new year to levels not seen in eight years or more.
Leverage among long/short equity hedge fund managers is higher now than at any point since at least 2004, according to Morgan Stanley. The increasing friskiness of hedge fund managers—who largely missed out on last year's stock-market rally—can also be seen in margin debt offered by New York Stock Exchange brokers, which hit a nearly four-year high in November.
Gross hedge-fund leverage was 153% in the week ended Jan. 4. That's up 10% from a year earlier and from the industry's eight-year average and 1% from last year's average.
It's clear that hedge funds and other market players are confident that stocks will continue to rise this year: Long bets on Standard & Poor's 500 Index futures hit a nearly four-year high at the beginning of the month.
"Indicators are bullish and equity hedge funds are jumping on the bandwagon, thinking now is a good time to have more exposure to the market," Barclays hedge fund consulting chief Anurag Bhardwaj told Bloomberg News. "That's a good thing for the market overall."
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 ...