Wednesday, 22 October 2014
Last updated 15 hours ago
Jun 3 2013 | 11:52am ET
Hedge funds were up 0.94% for the month, as of May 29, according to the investable hedge fund composite index in the latest Bank of America Merrill Lynch Hedge Fund Monitor.
Convertible arbitrage and event driven funds were the best performers, adding 3.54% and 2.09%, respectively. Macro funds were the worst, shedding 0.75%, which BofAML analyst Stephen Suttmeier says is no surprise, given their recent net short positions in US equities.
Hedge funds continue to trail the S&P, which was up 3.18% over the monitored period.
Suttmeier says macro funds bought risk assets including the S&P 500, NASDAQ 100 and commodities to a net long, and increased EM exposure to the highest level since October 2011. They also bought the US dollar index and T-notes to a net long. Meanwhile, Macros bought EM exposure to the highest since October 2011, while maintaining their net long positions in EAFE.
Commodity Futures Trading Commission data shows large hedge fund equities speculators bought the S&P 500, NASDAQ 100 and Russell 2000 while agriculture speculators bought soybean and corn, and reduced their wheat shorts.
Metals specs sold gold, silver and platinum but were flat palladium copper. Energy specs sold crude oil and gasoline while partially covering their shorts in heating oil and natural gas.
FX speculators remained net long the US dollar while adding to their euro and yen short. Interest rate specs sold Treasuries across the board, leaving them net short 30-, 10- and 2-year T-bills.
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 ...